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Thursday, Aug 22
Alcatel-Lucent, Nokia, Ericsson win China Mobile 4G contracts
- China Mobile (CHL +1.1%) has handed out RMB20B ($3.26B) worth of 4G TD-LTE base station supply contracts. 65% of the orders are reportedly going to local vendors - Huawei (25%), ZTE (ZTCOY.PK - 20%), and Datang (10%) are getting large portions - and the rest are going to Alcatel-Lucent (ALU +3.5%), Nokia (NOK +1.7%), and Ericsson (ERIC +1.9%).
- Alcatel is said to be receiving a 13% share of the orders (worth $424M), and Nokia and Ericsson are each believed to be getting 11% (worth $359M). Evercore previously forecast Western suppliers would receive ~30% of the orders.
- Altogether, CHL is procuring 207K base stations. The purchases will consume a large chunk of the ~$7B the world's biggest carrier has allocated this year to 4G capex, ahead of the expected arrival of government licenses at year's end.