Alcatel-Lucent [ALU] signed two framework agreements worth $1.7 billion with China Mobile and China Telecom, Alcatel-Lucent announced.
The deal will provide network upgrades, integration and maintenance services this year.
As the leading operators in China, China Mobile and China Telecom were granted 3G licenses in January for TD-SCDMA and CDMA/EV-DO technologies, respectively. The agreements were secured through Alcatel-Lucent Shanghai Bell, Alcatel-Lucent’s Chinese company.
The contracts were signed in Washington, D.C. They break down this way:
Under an agreement worth about $1 billion with China Mobile, Alcatel-Lucent will provide GSM/EDGE solutions, TD-SCDMA wireless networking equipment, optical, microwave and IP transmission offerings, IP service routers, application platforms and related services.
In the other contract, with China Telecom, worth about $700 million, Alcatel-Lucent will supply its 3G CDMA/EV-DO networking equipment, application platforms, optical and IP transmission platforms, IP service routers and network maintenance services to support rollout of the company’s 3G wireless broadband network.
China Mobile and China Telecom are two strategic partners of Alcatel-Lucent in China. At the end of last year, a consortium led by Alcatel-Lucent Shanghai Bell and Datang Mobile won the largest share in China Mobile’s tender for the second phase of its TD-SCDMA mobile network trial. Also last year, China Telecom selected Alcatel-Lucent Shanghai Bell for a $230 million upgrade of its CDMA mobile network.