Indian coup for Huawei

Huawei Technologies Co has signed a US$500 million contract with Reliance Communications Ltd (RCOM), India’s largest mobile carrier, China’s biggest private telecom equipment company said yesterday.

It was Huawei’s first huge-volume overseas order this year and marks another move for the Shenzhen-based company to expand in the global market.

The deal is expected to help the company become more competitive in the 3G era in the domestic market, industry insiders said.

Under the contract, Huawei will provide products and end-to-end mobile solutions to RCOM for three years.

The contract will significantly reduce the total cost of ownership of RCOM’s national GSM (global system for mobile communications) network. The nationwide GSM rollout, covering 20,000 towns and 600,000 villages, will enhance RCOM’s GSM business competitive advantage in attracting new subscribers on the all-IP next generation network, Huawei said in a statement.

Huawei’s new deal is a follow-up to a US$200 million CDMA (code division multiple access) network expansion contract from RCOM in July.

“With its established global credentials, it was rather easy for us to decide upon Huawei as our preferred partner,” Anil Dhirubhai Ambani, RCOM’s chairman, said in the statement.

Huawei now serves 35 of the world’s top 50 operators, along with more than one billion users worldwide.

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