On 1 December 2002, Nortel Networks announced a contract worth approximately USD 65 million with China Unicom for deploying CDMA2000 1X platforms in Hunan Province, with additional GSM capacity in five other Provinces. China Unicom has also awarded contracts to Nortel Network's flagship, manufacturing, joint venture company, Guangdong Nortel Telecommunications Equipment Ltd.
Together with Guangdong Nortel, China Unicom plans to expand its CDMA network capacity in Hunan Province using Nortel Networks Univity CDMA2000 1X equipment. This builds on the estimated USD 280 million in CDMA2000 1X contracts Nortel Networks announced with China Unicom in October 2002 for Zhejiang, Shandong, Heilongjiang, Henan and Jiangxi provinces and Chongqing municipality. Under the terms of the contract, the deployment will include Nortel Networks Univity radio, core switching and intelligent networking equipment, which will help China Unicom improve spectrum efficiency and reduce costs. Univity will also position China Unicom to migrate to an all-IP packet network.
China Unicom has also awarded new contracts estimated at approximately USD 40 million to Nortel Networks for the expansion of its GSM networks in Heilongjiang, Hunan, Henan, Zhejiang and Shandong. These expansions, including GSM switching, radio base stations and transmission equipment, are expected to increase China Unicom's GSM network capacity by more than 1.25 million subscribers.
Peter Mathers, Research Analyst, Asia-Pacific team provides details of Nortel Network's success in acquiring both CDMA and GSM expansion contracts in China. The Infrastructure section of EMC World Cellular Review 2003 looks at vendor contract awards. EMC World Cellular Review 2003 report evaluates the strategies, developments and outcomes for the wireless industry in 2002 and offers analysis and insights into 2003.
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