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China Mobile Solicits OTN Equipment Bids

Shanghai Securities News, 12/19/12

China Mobile (NYSE: CHL; 0941.HK) officially launched its 2013 Optical Transport Network (OTN) transmissions equipment tender recently, two months later than had been expected. The tender is China Mobile's first centralized tender solely for OTN equipment, and is larger than previous tenders. China Mobile will announce a separate tender for PTN (Packet Transport Network) equipment subsequently.

The tender reportedly covers contracts in six areas: new OTN construction needed for dedicated ITMC networks, new OTN construction needed for inter-provincial backbone networks in East China, new OTN construction needed for inter-provincial backbone networks in West China, new OTN construction needed for inter-provincial backbone networks in Northeast China, new OTN construction needed for 10 Gbps interprovincial networks, and new OTN construction needed for 40 Gbps and 100 Gbps interprovincial networks. Industry insiders expect the total value of the OTN tender to reach RMB 1 bln.

Chinese communication equipment and network solutions providers Fiberhome Telecommunication Technologies (600498.SH), ZTE (0763.HK; 000063.SZ), and Huawei still account for the bulk of the OTN and PTN markets at present. In China Telecom's (NYSE: CHA; 0728.HK) earlier RMB 400 mln OTN equipment tender, Fiberhome won 12 of 31 contracts for national and provincial backbone networks and municipal networks in East China, Central China, South China, West China, and Northwest China.

Keywords: China Mobile telecom 000063.SZ Fiberhome Huawei PTN OTN CHL 0941.HK 600498.SH procurement

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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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