China Telecom Operators to Boost Investment in 4G Networks
Chinese telecom operators will award contract to super mobile networks thus kicking off the third wave of the global investment cycle that is said to reshape the competitive landscape within the country’s telecom equipment makers. China is the world’s largest mobile market having more than a billion subscribers is said to further alter the market at the expense of European suppliers giving Huawei and ZTE a huge boost.
Huawei have already captured a chunk of Europe’s fourth generation mobile contracts marking another win for the company since its tough for pack gear makers like Nokia-Siemens Networks and the Alcatel-Lucent which have been battling the Chinese competition in hopes to generate profits since they formed mergers in 2006.
Currently Sweden’s Ericsson hold the largest slice of the global mobile equipment market with 35 percent, Huawei follows with 17 percent then Nokia-Seimens at 15 percent and Alcatel-Lucent with 12 percent. The first wave of 4G investments started in 2010 in Japan, while Korea still choose Ericsson and Nokia but later saw the arrival of Samsung. The second wave happened in the US which chooses Ericsson and Alcatel-Lucent.
Meanwhile China’s biggest mobile operators namely China Unicom, China Mobile and China Telecom are planning to spend 345 billion yuan combined this year to do network upgrades including investments in 4G, therefore increasing their mobile broadband speeds to five times for their iPhone and Samsung Galaxy smart phone users.