China Unicom Signs RMB10Bn CDMA Equipment Contracts

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Last updated at: (Beijing Time) Friday, October 25, 2002

China Unicom Signs RMB10Bn CDMA Equipment Contracts

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Board chairman of China Unicom Yang Xianzu signed four framework agreements for its second-stage CDMA network expansion with Motorola, Lucent, Nortelnetwork and Ericsson in the evening of October 21, in the US. In earlier times China Unicom had clinched purchasing CDMA network equipment and service with Samsung's joint venture in China and ZTE Corporation.

China Unicom will make efforts to finish its network expanding and updating within the year and extend its capacity to 30 million users, Yang said.

As learned from China Unicom, in the place of framework agreements formal contracts for the most part will be inked later in China, with a purchasing price much lower than that of the first-stage agreements.

The agreements signed on October 21 are at a respective value of 2.9 billion yuan with Motorola, 3.54 billion with Lucent, 2.1 billion with Nortelnetwork and 1.288 billion with Ericsson.

Equipment suppliers got respective shares

Motorola, for the first time becoming China Unicom's CDMA 1X network supplier, will cover 11 provinces, autonomous regions and cities as Guangdong, Jiangsu, Fujian, Hebei, Jilin, Shanxi, Jiangxi, Guangxi, Xinjiang, Gansu and Beijing through its joint venture in Hangzhou and its partner, Guangzhou-based Jinpeng Group. An increased capacity of 5.4 million users is expected.

Lucent's agreement with China Unicom involves 10 Chinese provinces and an expansion of 5 million CDMA users before January 2003 through its joint venture in Qingdao.

Nortelnetwork said it will fulfil its agreement through Gudngdong Nrotelnetwork, its joint venture in south China.

While Ericsson said that it will update the current Sichuan CDMA network which now boasts more than 10,000 commercial users. This will be carried out by Nanjing Ericsson Panda Communication Co,. Ltd (ENC), Ericsson's biggest joint venture in China.

By PD Online Staff Li Heng

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