Moto scoops $431m in Chinese deals

Welcome news for troubled US vendor Motorola this week as it announced Chinese network contracts worth $431m.

Moto said it has signed multiple contracts with leading mobile carrier China Mobile, for the expansion and upgrade of its existing GSM network. Under the deal, Motorola will supply kit and services across 16 provinces and municipalities.

The vendor said approximately 50 per cent of the revenue from these contracts was recognised in the first half of 2008. Last week, Motorola announced earnings for the quarter to end June 31 of a modest $4m, but this compares to a loss of $28m in the same period last year. Net sales were down slightly to $8bn, compared to $8.7bn in the same period last year.

Earlier this week, China Mobile revealed it has tapped ZTE to deliver a 3G-capable, mobile TV-enabled handset in time for the Olympic Games in Beijing. The U728 handset will be the first commercially available device based on China’s homegrown TD-SCDMA technology.

The announcement indicates that 3G, at least in its TD-SCDMA form, will be widespread by the time the games kick off. ZTE also said it expects 3G licenses to be officially issued in the mainland by end of the year.