China Mobile provides US$394m contracts

PUBLISHED : Tuesday, 14 August, 2007, 12:00am
UPDATED : Tuesday, 14 August, 2007, 12:00am

Motorola secured US$394 million worth of contracts with China Mobile Communications, the world's largest cellular network operator, in the first half of the year, as the mainland firm expanded its Global System for Mobile communications (GSM) infrastructure.

About 60 per cent of the revenue from these contracts was recognised by Motorola in the six months ended June, when it posted a net income loss of US$209 million because of falling mobile-telephone sales.

The deals from China Mobile benefited Motorola's thriving GSM infrastructure equipment and services business, according to the company. Equipment that included Motorola's Horizon II base stations were deployed across 16 provinces and municipalities, including Beijing and Tianjin, Sichuan and Yunnan in the southwest Guangdong, and Shanxi and Inner Mongolia in the north.

'Our goal is to continue to provide China Mobile with a state-of-the-art GSM network that enlarges its network coverage, maximises investment and delivers the best services to its customers,' Motorola China president Kao Ruey-bin said.

China Mobile's steady network expansion is credited with helping the operator add more services and functions, expand its subscriber base and better manage the complexities of its operations.

Li Yue, an executive vice-president at China Mobile, said Motorola's advanced technologies and services helped the mainland operator to develop a 'high-performance and cost-efficient infrastructure'.

China Mobile, which runs wholly owned subsidiaries in 31 provinces and municipalities, has used Motorola as a supplier for more than 20 years. As of April, China Mobile counted more than 330 million wireless subscribers on its nationwide network.