Alcatel-Lucent wins $1.7bn in Chinese 3G deals

Telefónica’s start up incubator Wayra has struck an agreement with Chinese incubator Virtue Inno Valley (VIV) to promote each other’s businesses in each other’s geographic territories

Mega vendor Alcatel-Lucent said this week that it has scored infrastructure agreements worth $1.7bn from Chinese carriers China Mobile and China Telecom.

Under the agreements, Alcatel-Lucent will provide network upgrades, integration and maintenance services over the course of 2009. China Mobile and China Telecom were granted 3G licenses in January, to roll out TD-SCDMA and CDMA/EV-DO technologies respectively.

The deal, valued at approximately $1bn with China Mobile, will see Alcatel-Lucent provide GSM/EDGE infrastructure, TD-SCDMA kit, optical, microwave and IP transmission offerings, application platforms and related services.

The agreement with China Telecom, valued at approximately $700m, will see Alcatel-Lucent supply 3G CDMA/EV-DO networking equipment, application platforms, optical and IP transmission platforms and network maintenance services.

In January, the Chinese government finally awarded 3G licenses to the country’s three incumbent operators – China Mobile, China Unicom and China Telecom.

China Mobile will offer services using China’s homegrown TD-SCDMA standard, China Unicom will use WCDMA, and China Telecom will use EV-DO.

In December, the country’s Ministry of Industry and Information Technology (MIIT) announced that it expects spending on equipment by carriers to total US$41 billion over the next two years.

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