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Alcatel Signs DSL Deal with China Telecom
Alcatel of France said Thursday it had signed a deal in Beijing with China Telecom to develop DSL technology in China which enables high-speed Internet access over traditional telephone lines.
In a statement, Alcatel said it would supply 7300 DSL access multiplexers to China Telecom as well as its SpeedTouch DSL modems.
"This agreement sets a blue print for a long-term strategic cooperation", Alcatel said. The value of the deal with China's largest telecommunications provider was not specified.
The company is hoping to cash in on the rapid rise of Internet use in China, which counted 22.5 million users at the end of 2000 compared with 8.9 million the previous year.
The Asian Wall Street Journal in a report from Hong Kong said the deal could be valued at between US$70 million to US$225 million in the first year, with most of the business to follow in later years.
Alcatel boasts it is the world leader in Digital Subscriber Lines (DSL) ahead of its main competitors the US giant Motorola and Germany's Siemens, with more than 53 percent of the market and six million lines delivered in 2000.
Alcatel also signed a US$180 million deal with Jiangsu Mobile to extend the mobile phone network in eastern Jiangsu province, Alcatel said in a statement.
The group has already installed mobile phone networks across half the Chinese provinces.
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