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Andrew Wireless secures CDMA equipment deal from China Telecom

China Telecom, the nation's largest fixed-line communications network operator, has chosen United States-based Andrew Wireless Solutions as sole foreign equipment supplier for the expansion of its new code division multiple access (CDMA) mobile telephone system.

Andrew, a unit of Nasdaq-listed telecommunications infrastructure vendor CommScope, is to supply a range of cables and antennas for an undisclosed amount to the operator.

The project follows China Telecom's 110 billion yuan (HK$125 billion) acquisition last month of China Unicom's CDMA network, as part of a sweeping restructuring of the mainland's telecommunications sector.

Ben Cardwell, vice-president of sales and marketing at Andrew Asia-Pacific, said the company's 'rich experience in wireless infrastructure deployment in mature markets helped it win the contract' against the competition, which included 13 domestic suppliers of telecommunications equipment.

Mr Cardwell said Andrew had been involved since 2002 in developing the CDMA network of China Unicom, the country's No2 mobile phone network operator.

Andrew has set up its biggest overseas unit on the mainland, where it has about 3,300 staff and production and research centres in Suzhou, Shenzhen and Shanghai.

Analysts project that the government-driven restructuring of the industry will spur capital expenditure worth more than 400 billion yuan over the next two to three years.

China Telecom earlier this month awarded a reported 27.9 billion yuan in wireless equipment contracts. Huawei Technologies won about 30 per cent, the biggest share of the pie.

US analyst firm EJL Wireless Research said Huawei and ZTE Corp lead the world in CDMA2000 equipment projects.

'Demand remained heavily concentrated in both the Asia-Pacific and Africa during the quarter,' EJL Wireless president Earl Lum said. 'Chinese OEMs continue to dominate the CDMA2000 segment as they captured 90 per cent of global contracts in the third quarter.'

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