Motorola, China Unicom In US$190 Million GSM Deal

Motorola Inc.’s Network Solutions Sector (NSS), one of world’s leading suppliers of GSM (Global System for Mobile Communication) systems, has signed 3 new digital cellular network expansion contracts with China Unicom worth a total of about US$190 million.

Under the terms of the contracts, of which one third involve China Eastern Communications Company Limited (Eastcom) and Guangzhou Jinpeng Group Co., Ltd. (Jinpeng), Motorola will expand China Unicom’s GSM 900 networks in three of China’s major provinces, which together boast a population of 220 million people.

Motorola’s Horizonmacro GSM infrastructure solution will be used to expand the GSM networks in Shandong, Jiangsu and Hunan provinces. The contract with Unicom Jiangsu marks the second time in just two months that Motorola NSS has been awarded with multi-million dollar business to enhance Jiangsu GSM network.

China’s Unicom’s GSM network capacity will be increased by 2.3 million subscribers as a result of the expansion work, when completed by year-end. Apart from the three contracts, several other contracts involving more GSM systems expansion for China Unicom are currently under negotiation between the two parties and are expecting signature before the end of July.

Eastcom and Jinpeng have licensing and joint venture agreements with Motorola to manufacture, distribute and provide service for Motorola’s GSM and CDMA (Code Division Multiple Access) cellular infrastructure products within China. Eastcom has been supplying Motorola’s digital cellular equipment in China since 1995, while Jinpeng started providing Motorola equipment in China 1999.

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