Shanghai Mobile, Alcatel Team up for GSM Network Expansion

Alcatel (Paris: CGEP.PA and NYSE: ALA) has signed through one of its largest joint ventures in China, Shanghai Bell Alcatel Mobile Communication System Co., Ltd. (SBAMC), a GSM mobile network expansion contract with Shanghai Mobile Communication Co., Ltd. (Shanghai MCC).

It is the 7th network expansion by Shanghai MCC, which will bring its GSM network to a total capacity of more than 6 million subscribers. The amount of the contact is worth over RMB 630 million yuan.

Shanghai, the most developed city in China with a population of 17 million, is one of the fastest growing mobile phone markets, with now 3 million mobile phone users, in comparison to 170 thousand in 1995. Thanks to this expansion, network traffic gridlock will be greatly eased in this densely populated city.

Under this contract, Alcatel will provide Shanghai MCC with advanced infrastructure, software and system services, including Alcatel's EvoliumTM base stations, which are produced by SBAMC and have already been installed in 15 provinces in China. The software in this expansion will allow seamless roaming between GSM and DCS 1800 subscribers.

"We have been in a long-term partnership with Alcatel to build high-quality networks that meet demands from a fast growing number of GSM subscribers", said. Zheng Jie, vice president of Shanghai MCC.

"Alcatel has demonstrated its commitment in maintaining a high quality level of service when facing a tremendous traffic density in Shanghai," said Michel Rahier, president of Alcatel's Mobile Communication activities.

Tarek Moustafa, president of SBAMC added, "This contract shows the long-term trust of Shanghai MCC in Alcatel and it also represents the success of Alcatel's strategy to ensure customer satisfaction."

After the expected implementation of the project in the first half of this year, Alcatel's GSM network will reach over 3 million subscribers in Shanghai.

About Alcatel in China

SBAMC Shanghai Bell Alcatel Mobile Communication System Co., Mtd. (SBAMC), a joint venture between Alcatel and Shanghai Bell, focuses on the production and engineering services of complete GSM and DSC 1800 mobile networks in China. SBAMC is located in Shanghai's new area of Pudong and has branch offices in 11 provinces.

Alcatel builds next generation networks, delivering integrated end-to-end voice and data networking solutions to established and new carriers, as well as enterprises and consumers worldwide. With 130,000 employees and sales of EURO 31 billion in 2000, Alcatel operates in more than 130 countries.

Alcatel has been present in China since 1983. Its investment in China has now brought forth 16 joint venture companies and 6 wholly owned companies including 5 R & D centers, covering the full scope of activities spanning the air, the land and the sea. It is also the supplier of all major China telecom operators.



By PD Online staff member Huang Ying


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