UPDATE: Ericsson Gets Broadband Deals From Chinese Operators
July 03 2009 - 7:12AM
Dow Jones News
L.M. Ericsson Telephone Co. (ERIC) said Friday it has been
awarded contracts to provide fixed broadband access to the three
Chinese telecom operators, China Mobile (CHL), China Unicom (CHU)
and China Telecom (CHA).
The Stockholm-based telecom equipment vendor said it will roll
out fiber-to-the-home, or FTTH, networks for the three operators,
which are upgrading their networks in a number of provinces
including Guangdong, Shanghai and Sichuan.
It said it will also provide a range of services, including
competence development, network design and consultancy.
Ericsson didn't reveal the value of the orders.
The Chinese market, where operators are investing massive
amounts of money to upgrade their networks, has turned into a major
sales growth hope for telecom equipment vendors as demand in other
parts of the world is hit by the economic recession.
Ericsson is involved in fierce competition with European rivals
Alcatel-Lucent (ALU) and Nokia Siemens Networks (NOK, SI) as well
as Chinese players such as Huawei Technologies Co for a share of
the growing market.
Still, one Stockholm-based analyst said the contracts announced
Friday are unlikely to have any significant importance for the
Swedish company, as FTTH roll-out deals aren't significantly
revenue-enhancing.
At 1026 GMT, Ericsson's shares were down 0.8% at SEK75.50
against a 0.4% drop in the broader Stockholm market.
Company Web site: www.ericsson.com
-By Gustav Sandstrom, Dow Jones Newswires; +46-8-5451-3099;
gustav.sandstrom@dowjones.com