Seeking Alpha

China Mobile hands out $3.2B worth of 4G orders

  • Reuters adds to earlier speculation about China Mobile (CHL) awarding initial contracts worth a total of 20B yuan ($3.2B) for the expansion of its 4G network.
  • Ericsson (ERIC), Alcatel-Lucent (ALU) and Nokia's (NOK) NSN have each won deals worth around 10% of the total tender. China's Huawei and ZTE have obtained 25% each. Some of these numbers are different from the previous speculation.
  • The build-out of China Mobile's 4G network should help further pave the way for the mobile carrier, which has over 700M customers, to finally strike a deal with Apple (AAPL), whose upcoming devices are expected to support the operator's 4G TD-LTE technology.
Comments (17)
  • Stephen J Melnykevich
    , contributor
    Comments (1227) | Send Message
     
    This continues to lead towards a eventual announcement of AAPL deal with China Mobile.
    23 Aug 2013, 02:15 AM Reply Like
  • rocback
    , contributor
    Comments (974) | Send Message
     
    If China Mobile deal along with an inexpensive version of the I phone is announced on Sept 10th the stock will pop at least $100. If Apple just gets just a 20% share of China Mobiles 750 million subscribers, thats 150 million new I phones and will reverse Apples declining share in China on top of adding 150 million people into the Apple ecco system...3 HUGE positives for the stock
    23 Aug 2013, 11:46 AM Reply Like
  • J.J. Rendina
    , contributor
    Comments (5) | Send Message
     
    Just speculatin' but this could be a tell on the phone deal. An investment by Apple (or Ichan) in the network would sure be a win-win and would have helped it along.
    23 Aug 2013, 05:24 PM Reply Like
  • mr wonder
    , contributor
    Comments (541) | Send Message
     
    China is eager to take advantage of the benefits of the open markets in the Western world. However, this China Mobile tender once again shows that China is not really willing to open its market for foreign companies.

     

    The way the total tender is divided between companies, shows a clear preference for Chinese companies. It is not a matter of letting the best company wins. .
    Most probably ERIC, ALU and NOK got a little piece of the pie because those companies own valuable knowledge which is of interest for the Chinese.

     

    This should be answered the same way by Western authorities, giving preference for Western companies.
    23 Aug 2013, 03:27 AM Reply Like
  • Cindywu1018
    , contributor
    Comments (139) | Send Message
     
    Chinese are dumping wind turbine and solar module in EU. They gave a small piece of pie as lobby for alternative energy sales in EU. A well calculated tactic from the Chinese government. German biggest solar cos are all gone insolvent facing unlawful Chinese dumping...Alu, Eric, NSN have recently sent petition to EU commission, not to pursue solar dumping issue, fearful of losing Chinese market.
    23 Aug 2013, 06:32 AM Reply Like
  • J Mintzmyer
    , contributor
    Comments (3604) | Send Message
     
    Who cares? Buy the cheap wind turbines and solar modules paid for by the Chinese. Use some of the savings to support the EU innovation labs.
    23 Aug 2013, 08:40 AM Reply Like
  • Randal James
    , contributor
    Comments (2327) | Send Message
     
    Jay

     

    So much wrong with your thesis. The best quality, most efficient and longest lasting wind products (surprise) are not Chinese, but as with toys, we should buy them and discard them sooner because they were initially cheap? Pretty soon there is no domestic manufacturer (ooops, no jobs... so sorry) and prices can be raised back to what they were before without much fear of fresh domestic competition.

     

    Sounds like you'd like us to innovate ideas so they can be stolen and manufactured elsewhere. Brilliant.

     

    BTW, Suppose I'm a California utility and am able to 'save' $150,000 on each of the wind turbines I have installed around Barstow. Because I'm a REGULATED public utility, my rates are set based on investments and capital costs, so I will spend less, but not make more.

     

    Where does the $150,000 come from? A fresh tax on ratepayers?
    23 Aug 2013, 08:58 AM Reply Like
  • dalzim
    , contributor
    Comments (7) | Send Message
     
    Huawei ZTE are blocked by the US gouvernement, you call that "open markets"?
    23 Aug 2013, 09:01 AM Reply Like
  • ted lujan
    , contributor
    Comments (517) | Send Message
     
    10% of the business is better than zero and the EU and USA should and in many cases do give their national companies special deals in many ways as do the Chinese. Well their are some exceptions in the USA. Our government gives special treatment to those companies who support their political agenda.
    23 Aug 2013, 09:38 AM Reply Like
  • what do I know
    , contributor
    Comments (1049) | Send Message
     
    May God bless you, the originator of this news!
    23 Aug 2013, 10:24 AM Reply Like
  • Vipertom
    , contributor
    Comments (167) | Send Message
     
    While we in the U.S. like to think we have open competition at the government level, look no further than the Department of Defense and the very few contracts it awards foreign companies. How is this different than what China is doing? They too, have employment issues. It is quite probable that the award to foreign companies by the Chinese has political overtones as mentioned above, but can we say that we haven't done the same?
    23 Aug 2013, 11:05 AM Reply Like
  • mepa84
    , contributor
    Comments (48) | Send Message
     
    'The building of China Mobile's 4G network should help pave the way for the mobile carrier, which has over 700M customers, to finally strike a deal with Apple (http://bit.ly/pFSoX2), whose upcoming devices are expected to support the operator's 4G TD-LTE technology'

     

    SA editor please do your homework before writing. China Mobile's TD-LTE network is running for more than one year and Samsung and others are selling many such phones. The only reason that deprived Apple from making a deal with this carrier is its arrogance, which eventually will ruin this giant.
    23 Aug 2013, 01:34 PM Reply Like
  • Sam Liu
    , contributor
    Comments (3864) | Send Message
     
    "China Mobile's TD-LTE network is running for more than one year "

     

    CHL's LTE first was shown off at the 2010 Expo, officially it came out to the public last month.
    23 Aug 2013, 02:56 PM Reply Like
  • SA Editor Yigal Grayeff
    , contributor
    Comments (343) | Send Message
     
    Hi,

     

    Thanks for the comments. The wording was amended accordingly.

     

    Yigal
    25 Aug 2013, 12:58 AM Reply Like
  • SexyJon
    , contributor
    Comments (35) | Send Message
     
    Yes, maybe Apple can close a deal in China if they start making phones that can be used on the network.
    23 Aug 2013, 03:20 PM Reply Like
  • Sam Liu
    , contributor
    Comments (3864) | Send Message
     
    Cn Mobile 's 3g network was shabby, less than reliable ...
    23 Aug 2013, 03:42 PM Reply Like
  • Guest 9X9
    , contributor
    Comments (46) | Send Message
     
    Just wondering. If China Mobil is just now awarding contracts to build its 4G network, how long before it will be operational? Seems like at least 12 - 24 months away...am I missing something?
    24 Aug 2013, 02:44 PM Reply Like
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