Alcatel Wins Deals in China

Alcatel wins more than $30M worth of contracts to expand and upgrade the GSM/GPRS network of China Mobile sub Zhejiang Mobile Communication

June 11, 2003

2 Min Read

PARIS -- Alcatel (Paris: CGEP.PA and NYSE: ALA), the world's fastest growing GSM/GPRS solutions provider, today announced the signing of several contracts in China amounting to more than US 30 million dollars. These contracts will expand and upgrade the GSM/GPRS network of Zhejiang Mobile Communication Company Limited (Zhejiang Mobile), a subsidiary of China Mobile, one of China's leading mobile communications service providers.

Under the terms of these contracts, Alcatel will deploy its Evolium? industry-leading mobile network solution to expand the GSM/GPRS network over most of the major cities in the Zhejiang Province (located in the South-East of the country), including Hangzhou, Shaoxing, Jiaxing, Jinghua, Huzhou, Lishui and others. The building of the new networks is expected to be completed by August. This will enable Zhejiang Mobile to increase its GSM/GPRS network capacity to more than 16 million subscribers.

Along with supplying infrastructure equipment, Alcatel will also provide Zhejiang Mobile with its innovative advanced Home Location Register (HLR). The Alcatel state-of-the-art mobile subscriber database solution is able to support GPRS prepaid services as well as ensure smooth and cost effective migration towards 3G/UMTS.

The richness of the Evolium? Mobile Radio concept is the direct result of Alcatel's mastery of mature, field-proven and evolutive technology. Among others, half rate mode capabilities of Evolium? radio solutions enable Zhejiang Mobile to avoid congestion and double end user capacity, while increasing the Quality of Service of its network. With a population reaching 50 million, Zhejiang is one of China's most developed provinces today. Its mobile subscriber base has more than tripled from 3 million in 2000 to almost 10 million to this date.

The expansion contracts were won through Alcatel Shanghai Bell, Alcatel's flagship Chinese company and the leading Chinese telecom technology vendor.

Xu Long, Zhejiang mobile's general manager, declared, "We are very pleased with the long-term cooperation we have had with Alcatel Shanghai Bell. This project will put us another step closer to 3G. With Alcatel Shanghai Bell's cost-effective mobile solutions and dedicated support, we are empowered to provide various services with high quality."

Chen Lixin, Alcatel Shanghai Bell's Vice President of mobile network activities, added, "The cooperation with Zhejiang Mobile, a pioneer in adopting the latest technologies, shows the strength of the Alcatel Shanghai Bell position in the Chinese mobile market. We are very honored that Zhejiang Mobile underscores the relationship by choosing our up to date Evolium? mobile solutions to expand their network. This will protect their investment on their way to the 3G era."

China Mobile Communications Corp.

Alcatel Shanghai Bell Co. Ltd.

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