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China's 3G rollout sparks landgrab

by on31 December 2008

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$41 billion up for grabs


A long
delayed introduction of 3G in China has seen local and foreign IT outfits falling over themselves fighting for more than $41 billion in orders.

Names like Motorola, Alcatel-Lucent and Nokia-Siemens Networks are all for fighting to get their feet in the trough as the rest of their global demand falls. The largest Chinese carrier, China Mobile, expects to sign up 100 million 3G subscribers, in the next three years so it makes any deal incredibly lucrative.

But the foreign companies might have a problem getting Chinas regulators to give them contracts over local suppliers.
Domestically Huawei Technologies and ZTE, who have been selling cost cost kit in Africa and Asia are likely to get a big chunk of the business. Foreigners are likely to get less than half of China's 3G orders.

Washington and the EU are pressing Beijing to abide by World Trade Organization promises to treat foreign and domestic companies equally.
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