Motorola Makes China Deals Worth Nearly U.S. $1.2 Billion
Jan 14, 2004
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Schaumburg, IL, U.S.-based Motorola has signed a combined nearly $1.2 billion in agreements with Beijing, China-based China United Telecommunications Corp. (China Unicom), one of world’s largest wireless network operators, and China Mobile to supply equipment to China's largest telephone and personal computer companies.
Motorola signed $556 million in agreements with China Unicom and $510 million in agreements with China Mobile.
The China Mobile contract, which will expand Motorola’s Global System for Mobile (GSM) communications network and improve data services for users in Beijing and 13 provinces of China, was signed Jan. 13 in Washington, D.C., U.S. at a ceremony held during the U.S.-China Seminar on Prospects for Cooperation in Telecom and IT.
According to the agreements, Motorola Inc. will supply telecoms equipment to China Mobile and China Unicom, but most of the products will be made in China, said Kerry Strong, a general manager at Motorola (China) Electronics Ltd., according to an Associated Press report.
"Globally, Motorola aims to be the number one end-to-end solutions partner for our customers, and we are delighted that CMCC recognizes Motorola’s contribution to its success," said Simon Leung, senior vice president, Motorola, Inc., and general manager, Motorola GTSS Asia Pacific region, in a written statement about the agreement.
Motorola was the first supplier to sign a contract with China Unicom for its CDMA2000 1X Phase III expansion, with work carried out in Jiangsu province. The current network expansion is scheduled for completion by the end of March 2004. During the last 12 months, China Unicom has signed more than $627 million of network infrastructure and value-added service contracts with Motorola, according to Motorola.
Several other companies are also expected to make deals in the Asian region as well, according to a Reuters report. The reported pointed out the following companies as those who may soon make deals: Canada's Nortel Networks Corp., Sweden's Ericsson, and Cisco Systems Inc.according to a statement from the Telecommunications Industry Association. The industry trade group declined to provide further information. Values of the remaining deals were not available, according to the report.
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