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China telecom shuffle puts Nortel in catbird seat
China's major telecom realignment has put Canada's Nortel Networks in a position to finally pull out of the doldrums that have plagued it in recent months, Paradigm Capital analyst Barry Richards told the Ottawa Citizen.
China's second-largest fixed-line operator, China Netcom Group, and its second-largest cellular carrier, China Unicom Ltd., are set to merge under China Unicom's logo Oct. 15. Between them, they have 279 million customers. Both are Nortel customers and are upgrading from second to 3G and 4G technology. Unicom plans to spend $14.6 billion over the next two years upgrading to a 3G wireless network.
"This is a glorious opportunity for Nortel, already a supplier to both China Unicom and China Telecom," Richards said. "Overall, China has the potential to pull Nortel's business and its stock out of its long-term funk, and we believe they are well positioned to exploit that market."
For more:
- See the Ottawa Citizen story
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Comments
Posted by Willie Lu | August 30, 2008 - 12:01am
Forget China 3G Market! It is a trap again.
In my blog in Alwayson, I already wrote very clearly. The gov't' recent WINE regulation has actualy killed 3G business in China. But some stupid people still dream this "3G to save them which is totally hopeless.
China is not so stupid! If China needs 3G, why not buying Huawei or Putials's 3G equipments. Why China needs to feed Nortel - a almost dying company!
Again, I urge those people to wake up. Just forget 3G, and focus on whatever you are doing now. China is not old China, and will not allow Nortel to make their money.
Posted by Anonymous | August 29, 2008 - 11:14am
What kind of 3G technology China Unicom is planning to roll out? I hope for them it won't be UMTS based as they sold this part of their business to Alcatel-Lucent... It would not really help them...
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