Telecom Equipment News
- ZTE signs deal with China Mobile
Date: 12-Jun-2007 Sources: (Shenzhen Daily)
MAJOR domestic telecommunications equipment maker ZTE Corp. said yesterday it signed contracts to provide 2.37 billion yuan (US$30.89 million) worth of services to China Mobile Ltd.
The services cover the development of the Time Division Synchronous Code Division Multiple Access (TD-SCDMA) standard, Shenzhen and Hong Kong-listed ZTE said in a statement. It didn't give further details.
TD-SCDMA is a homegrown third-generation wireless technology that is now undergoing trials and is in competition with the foreign standards W-CDMA and CDMA2000.
Shenzhen-based ZTE also said it revised a deal with Qualcomm Inc. to buy US$500 million worth of chips from the United States-based developer of mobile-phone technology during the 2006-2007 period, up from the US$300 million worth it agreed in April 2006.
ZTE in April posted a 33 percent drop in second-half earnings, amid lackluster spending by telecom operators.
ZTE earned a net profit of 420 million yuan in the six months ended Dec. 31 last year, compared with 629.64 million yuan a year earlier.
For the full year 2006, ZTE's net profit fell 40 percent to 767 million yuan.
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