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4G mobile network offers business hopes

11-25-2010 13:51 BJT

Alcatel-Lucent, which won deals worth more than US$5.6 billion in China and the United States this month, said it expects a rapid growth in its business in China through opportunities brought by the fourth-generation, or 4G, mobile network.

"The world is coming to mobile broadband in 4G network," Ben Verwaayen, Alcatel-Lucent's CEO, said yesterday in Beijing. "The user demand is shifting from voice (and) data to video."

In the third quarter, Alcatel-Lucent's revenue increased 10.5 percent annually to 4.07 billion euros (US$5.45 billion), thanks to strong growth in India, China and Russia. Revenue in the North American region jumped 21.6 percent and that in Asia Pacific grew 18.6 percent in the quarter.

The Asia Pacific, mainly led by the Chinese and Indian markets, now accounts for 20 percent of the company's total global revenue, according to the Paris-based telecommunications equipment vendor.

Chinese telecom operators are expected to boost spending on 4G from next year, according to market observers.

China Mobile and partners are researching 4G handset chips and a 4G data card is "close to debut," the world's No. 1 mobile carrier had said previously.

China Mobile is testing a 4G network in 10 cities nationwide following trial tests on the technology during the World Expo held in Shanghai from May to October. Alcatel-Lucent is involved in an outdoor LTE (long-term evolution) test in Beijing and a LTE network that was tested in Shanghai during the expo.

On November 5, Alcatel-Lucent signed agreements valued at 1.18 billion euros (US$1.65 billion) with China Mobile, China Unicom and China Telecom to help them upgrade networks and provide related services.

Alcatel-Lucent Shanghai Bell, its subsidiary in China, invests 10 percent of its revenue in technologies including TD-LTE, a 4G standard.

Editor:Zheng Limin |Source: Shanghai Daily

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