ChinaTel signed a contract to buy equipment from ZTE for the carrier’s wireless network deployment in nine cities in Fujian province.
The value of equipment for the first two cities is $9.57 million. The parties have agreed on component pricing for future equipment in the other seven cities, which will be ordered upon completion of engineering work to determine final equipment needs.
The parties will also enter into a separate contract for ZTE to provide professional services including network planning and optimization and equipment installation for all nine cities.
The equipment contract calls for the delivery of 172 base stations and associated core equipment for installation in Xiamen and Fuzhou.
ChinaTel projects the equipment for Phase 1 will be delivered by July, and construction of Phase 1 will be complete and a commercial launch of the network in Fuzhou and Xiamen will occur by the fourth quarter of 2011.