China Awards First 4G Network Contracts

8th October 2013

China Mobile has awarded nine contracts for the launch of the Chinese 4G network. The state owned mobile network is accelerating work based on an increasing demand for Smartphone technology in the one of the World’s fastest growing mobile markets. As it stands China Mobile have approximately 750 million subscribers – over 60% of total mobile subscriptions worldwide. More than half the work has been allocated to domestic operators, however Ericsson, Alcatel-Lucent and Nokia Solutions and Networks also secured contracts for proportions of the work.

As it stands the approximate value of the contracts are estimated to be $3.2bn. Alcatel-Lucent have confirmed they will be providing an estimated 11% of the work with similar proportions assigned to Ericsson and Nokia Solutions and Networks. The work assigned to Alcatel-Lucent focuses on building 23,000 stations in the three major Chinese economic centres: Shanghai, Nanjing and Qindao.

The six domestic telecommunications companies to be awarded contracts were Hauwei, Poteivo, New Postcom Equipment Company, FiberHome Technologies, ZTE and Datang Mobile. The plan involves the deployment of a further 207,000 mobile base stations around China. It is worth noting that contracts have only been assigned for the first stage of the 4G project – representatives are still working on the allocation for the Stage 2 contracts.

China intends to launch the 4G services early in 2014.  Apple’s newest generations of iPhones are compatible with the spectrum used by China Mobile, prompting speculation of a power surge in sales.

Tom Johnson

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