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  Unicom signs US$1.46b of CDMA contracts
()
05/16/2001
China Unicom Group yesterday awarded US$1.46 billion in contracts to provide equipment for a massive mobile phone network based on the CDMA standard, ending years of expectation and frustration for several Western technology firms.

In a hastily held ceremony yesterday afternoon, the parent of number-two mainland mobile phone carrier China Unicom signed deals with firms, including US giants Lucent Technologies Inc and Motorola Inc, as well as Canada's Nortel Networks and Sweden's Ericsson.

China's off-again, on-again plans to build a nationwide mobile phone network using the CDMA standard developed by San Diego-based Qualcomm Inc have been delayed several times.

Motorola said its contract was worth US$407 million.

"I think I've been waiting for this thing for about five years," said a relieved Scott Erickson, Lucent's vice-president for international mobility, shortly after hearing that Lucent had won a contract to provide network gear in Shanghai, Guangdong, Hunan and other provinces.

He said Lucent's award to supply equipment for networks with a capacity of more than 4 million users, won with its Qingdao joint venture partners, gave it the largest share of the contracts awarded yesterday, although the dollar value of Lucent's pact was not immediately available.

Nortel's contract was worth US$275 million, according to an industry source, while Ericsson said its contract was worth US$200 million.

Chinese firms awarded contracts by China Unicom were Shanghai Bell, Zhongxing Telecom, Datang Telecom Technology Co, Huawei Technolgies, Eastern Communications, and Jinpeng Group.

China Unicom Group said its first phase network would have a capacity of up to 15.15 million users and would be completed by the end of 2001 or early 2002 - a schedule vendors have said is extremely aggressive.

The CDMA (code division multiple access) standard, on which Qualcomm earns royalties, is more efficient and crams more wireless data onto airwaves than the rival GSM standard that dominates Europe and Asia, including China.

China Unicom also said that its listed arm would lease from its parent and operate CDMA networks in 12 provinces once they are completed.

   
       
               
         
               
   
 

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