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ZTE wins $378m South African contract
27 January 2010
South Africa’s mobile operator Cell C has given ZTE a $378 million equipment and managed services deal
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[ZTE]
[Cell C]
[managed services]
[South Africa]
[Oger Telecom]
[Huawei]
Comment: Chinese companies such as ZTE and its rival, Huawei, have not moved into managed services with the vigour of their Western competitors — until now. This is a significant move by ZTE into managed services, working with the third mobile operator in the competitive South African market.
ZTE has signed a $378 million network supply and a managed services deal with Cell C. The Chinese company, according to the contract, will supply GSM and UMTS network turnkey solutions and operations services to the South African mobile operator and its parent company, Oger Telecom.
The deal is expected to be completed in three years. The Chinese company is seeking to widen its business abroad by selling telecoms equipment to a broad range of operators in both developing and developed markets.
ZTE offers telecommunications equipment and services to over 500 telecom operators in more than 140 countries. ZTE’s revenue is expected to increase to $8.9 billion, while the profit is expected to rise by 45% with much of the growth coming from a surge in exports. GTB