AlcaLu Lands Big $$ in Little China

Alcatel-Lucent (NYSE: ALU) has landed two deals in China worth a total of $460 million, the vendor announced Wednesday.

In a deal worth $340 million, the vendor is providing China Mobile Ltd. (NYSE: CHL) with GSM, GPRS, and EDGE radio access and core equipment, plus related services. (See AlcaLu Wins China Mobile Deal.)

Alcatel-Lucent is already working with China Mobile on its TD-SCDMA trials. (See China Mobile 3G Contracts Awarded.)

Industry analysts had expected China's mobile operators to award new GSM and GPRS expansion deals to cope with increasing subscriber and traffic demands while delays in the final 3G license award process continue. The number of mobile subscribers grew more than 17 percent in 2006 to reach 461 million, and further major growth is expected again this year, putting a strain on the existing networks. (See Top 10 Emerging Mobile Markets .)

Separately, the vendor has landed a $120 million contract with China Unicom Ltd. (NYSE: CHU) that builds on Lucent's strength in the CDMA market. (See AlcaLu Wins $120M China Deal.)

In that deal the vendor is supplying CDMA2000 1xEV-DO Revision A equipment for a network upgrade in Macau, plus CDMA core, access, and applications for Unicom's broader national CDMA expansion.

Unicom also runs a GSM infrastructure, so Alcatel-Lucent is also supplying core and access equipment for GSM, GPRS, and EDGE deployments, plus optical equipment to support that network build.

— Ray Le Maistre, International News Editor, Light Reading

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