China Mobile Launches PTN Procurement
Ccidnet, 10/16/09
China Mobile (NYSE: CHL; 0941.HK) recently issued a bidding invitation for PTN (packet transport network) technology group procurement. The invitation was issued to equipment manufacturers who had participated in China Mobile's PTN testing: Huawei, Alcatel-Lucent Shanghai Bell (ASB), ZTE (0763.HK; 000063.SZ), and Fiberhome (600498.SH) were among the companies named.
The invitation will expire in 10-20 days, at which point the next phase of commercial bidding will begin.
This is China's first group procurement of PTN equipment. PTN is used mainly to resolve problems with 3G data packet throughput. China Mobile's PTN procurement is intended for its TD-SCDMA network data services, with the goal of improving network access, integration, transmission and statistical multiplexing for multiple services. Industry insiders estimate that China Mobile will invest more than RMB 3 bln annually in PTN construction - a figure that will grow along with the operator's services.
According to a source inside China Mobile, the issue of PTN equipment prices, which had previously been a source of industry concern, has been resolved, with prices falling to a level acceptable to the operator during the equipment evaluation phase, meaning that price will not be an obstacle to PTN development.
Keywords: network construction China Mobile procurement wireless PTN CHL TD-SCDMA 0941.HK bidding Huawei ASB ZTE 0763.HK 000063.SZ Fiberhome 600498.SH