Sources from several equipment manufacturers who participated in China Telecom's recent round of CDMA equipment bidding have stated that China Telecom has basically decided the proportions of the total contract it will allocate to each equipment manufacturer. However, this current breakdown will not necessarily be the final result. Reportedly, Huawei has won contracts in 22 cities including Beijing and Guangzhou while ZTE has won contracts from 25 cities.

One equipment manufacturer revealed that for the core network, ZTE landed 70% of the total bid and Huawei secured less than 10%. For the wireless network, comprised mainly of base stations, ZTE won nearly 50% of the total and Huawei around 20-30%.

However, according to the National Business Daily, Huawei has won approximately 29% of China Telecom's current round of procurement for CDMA equipment, which is valued at a total of RMB 27.9 bln, ranking second in overall market share. ZTE ranked first in the bidding.

Editor's Note: Previous rumors said that Huawei, ZTE and Alcatel-Lucent had respectively won 40%, 40% and 20% of China Telecom's current round of CDMA equipment procurement. For more background on this topic, please see "Rumor: China Telecom Releases CDMA Equipment Bidding Results", MD 8/26/08 issue.

Source:China Business News