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Rumor: China Mobile TD-LTE Equipment Bid Results Leaked

21st Century Business Herald, 10/18/12

China Mobile (NYSE: CHL; 0941.HK) has circulated the results of its latest TD-LTE network equipment tender for 13 cities, including Beijing, Shanghai, and Hangzhou, among bidding network equipment providers, according to one vendor. One industry veteran revealed that ZTE (0763.HK; 000063.SZ) and Huawei landed the largest share of tenders, while Nokia Siemens Networks and Fiberhome Telecommunication Technologies (600498.SH) had the highest bids and each obtained less than 10% of the contract. Datang Telecom (600198.SH) and Alcatel-Lucent Shanghai Bell (ASB) submitted the lowest bids. No city had only one successful bidder; for example, Huawei and ZTE both won bids for Shenzhen's TD-LTE network, while Huawei and Datang will both supply equipment in Hangzhou and ZTE and Ericsson will supply Guangzhou's network.

Each vendor is currently in talks with local China Mobile branches in cities where they won their respective bids. While the division of labor between multiple vendors in each city has not yet been determined, it will likely be divided according to city districts.

Gu Xiang, ZTE's deputy GM for the mainland China region, predicted that total supply contracts for the 20,000 base stations to be deployed across the 13 participating cities will reach approximately RMB 4 bln, and next year's tenders for 200,000 base stations will reach over RMB 20 bln. This only accounts for tenders for wireless network equipment; including core network, electrical power, transmission, and business platform contracts, total market value for the tenders is expected to reach between RMB 60-70 bln.

Editor's Note: For more background on this topic, please see "ZTE Wins Largest Share of China Mobile LTE Network Tender" MD 10/15/12 issue.

Keywords: Gu Xiang China Mobile wireless 000063.SZ 0763.HK Datang Telecom Fiberhome Huawei mobile network equipment ZTE Ericsson Nokia Siemens Networks ASB CHL Siemens TD-LTE 0941.HK 600498.SH base station supply contract 600198.SH network construction procurement 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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