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Huawei Wins Over Half of China Telecom IPTV Terminal Bid

Lmtw.com, 11/30/09

The winners of China Telecom (NYSE: CHA; 0728.HK) parent group China Telecommunications Group's August 2009 tender for standard definition IPTV set-top box terminals have been determined. According to informed sources, Chinese telecommunications equipment manufacturer Huawei was awarded an order for nearly 500,000 units, more than half of the total. The Huawei-manufactured equipment will be deployed in Shanghai, Gansu, Shaanxi, and other regions.

Of the 15 companies that participated in the bid, only eight - Huawei, ZTE (0763.HK; 000063.SZ), UTStarcom (Nasdaq: UTSI), Coship (002052.SZ), CEC subsidiary 30Kaitian, Fiberhome (600498.SH), Jiuzhou Electric Group, and Changhong (600839.SH) - were awarded with contracts for specific regions. Though the other participants, including Alcatel-Lucent Shanghai Bell (ASB), Sunniwell, Yuxing, Motorola, DareGlobal, Konka (200016.SZ, 000016.SZ), and Thomson, were not awarded with specific contracts, they will be able to take part in follow-up terminal bids organized by individual provinces.

Of the other winning vendors, ZTE was awarded contracts for nearly 150,000 units, which will be deployed in Jiangsu, Shanghai, Chongqing, and Yunnan. UTStarcom won a bid for approximately 100,000 units, which will be deployed in Anhui, Fujian, Zhejiang, Shanghai, and Jiangsu. The top four vendors were awarded with more than 90% of the entire order.

Agreement signing ceremonies with each of the vendors will be held in the beginning of December.

Keywords: supply contract China Telecom IPTV television 000063.SZ 0763.HK Huawei ZTE set-top box UTSI UTStarcom 0728.HK CHA bidding

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The information contained in this newsletter is based upon sources that Marbridge Consulting believes to be reliable, and we have made every effort to translate the original articles or article excerpts as faithfully as possible. However, Marbridge Consulting makes no warranty of and assumes no legal responsibility for the accuracy of either the original source material or the English language translations.

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