HUAWEI Technologies has won a US$150 million deal to build a next-generation mobile network with related software and services in Sri Lanka, the Shenzhen-based company announced yesterday.
Huawei, China's biggest private telecom equipment maker, will grab more market share in the domestic 3G market after it has obtained network construction and operation experience in overseas markets, industry insiders said.
Under the agreement, Huawei will provide telecommunications network services to Bharti Airtel Lanka Private Limited in Sri Lanka. The three-year deal includes telecom applications and software.
Bharti Airtel, rated among the best-performing companies in the world in the Business Week IT 100 list 2007, was recently awarded the license to provide 2G and 3G mobile services in Sri Lanka.
Under the agreement, Huawei will deploy and manage Airtel's core network and 2G/3G network solutions.
Huawei's revenue was 65.6 billion yuan (US$8.63 billion) last year, with overseas income contributing 65 percent of the total.
"Chinese firms' overseas expansion experience has brought them credit and reputation, as well as domestic orders," Norson Telecom Consulting said in recent note.
In April, Huawei won a US$700 million contract from China Mobile for network construction, double its share of the carrier's budget.
ZTE Corp, also in Shenzhen, holds the biggest share of China Mobile's orders for third-generation telecommunications equipment.