Vendors get bonanza in China

(Telephony) Amid a slumping market for the wireless vendor community, China Unicom awarded numerous CDMA equipment contracts totaling about $1.5 billion.

Unicom awarded Lucent Technologies, Ericsson, Motorola and Nortel Networks contracts to build out a nationwide CDMA network in China, which Unicom will turn on commercially by the fourth quarter.

Lucent won the majority of the contract for an undisclosed amount. Estimates value Lucent’s contract at about $420 million. Motorola’s contract is valued at $400 million, while Nortel said its award is for $275 million. Ericsson’s contract value is for $200 million.

CDMA patent holder Qualcomm saw its stock increase $2.58 to close Tuesday at $59.50.

After months of heavy negotiations and political maneuverings that included Qualcomm signing a CDMA-royalty deal with China's wireless vendors, the Chinese government gave Unicom the go ahead in early 2000 to use the technology. What followed was a series of delays. Yet, when Unicom gained control of a state-owned CDMA system started by the military, Unicom decided to expand the system.