The deals will include fixed line and mobile infrastructure contracts from China Mobile (Hong Kong) Ltd. (NYSE: CHL), China Telecommunications Corp. (NYSE: CHA), and China Unicom Ltd.. The expected beneficiaries are:
- Motorola Inc. (NYSE: MOT), which is expected to sign multiple deals worth about $1 billion in total. Its share price was up 46 cents, nearly 3 percent, to $16.66 in pre-market trading. Its current 12-month high is $16.26.
- Lucent Technologies Inc. (NYSE: LU), which is set to ink contracts worth about $350 million. Its share price was up 16 cents, just over 4 percent, to $4.03 in pre-market trading. Its current 12-month high is $3.98.
- UTStarcom Inc. (Nasdaq: UTSI), which has already benefitted greatly from the Chinese market, is expected to pick up about $200 million worth of additional deals. Its stock was up 48 cents, about 0.5 percent, to $39.38 in pre-market trading.
- Cisco Systems Inc. (Nasdaq: CSCO) is in line for about $140 million worth of business. Its share price was up by just 4 cents, to $27.07, in pre-market trading.
- LM Ericsson (Nasdaq: ERICY) and Nortel Networks Corp. (NYSE/Toronto: NT) are also due to win new business. Both firms showed a pre-market increase in their share prices of about 1 percent, with Ericsson's up by 22 cents to $22.92 and Nortel's up 7 cents to $6.39.
The Washington event comes as Chinese vendor Huawei Technologies Co. Ltd. announces bumper 2003 revenues of $3.83 billion, with its international sales nearly doubling to $1.05 billion from $552 million in 2002 (see Huawei Reports Record Revenues).
— Ray Le Maistre, International Editor, Boardwatch