The boom in sales that telecom equipment makers are expecting from doing business in China may not materialize, according to the Wall St. Journal. With $10-billion to $30-million of 3G wireless sales poised to happen over the next four to five years, the business may go to Chinese suppliers such as ZTE and Huawei rather than Nortel, Lucent, Motorola or Ericsson. Here’s the story:
Bad news may be in store for Western telecommunications-equipment makers hoping to cash in on China’s expected $10 billion to $30 billion investment in new third-generation wireless networks over the next four to five years.
Manufacturers, including Motorola Inc., Lucent Technologies Inc., Nortel Networks Corp. and Sweden-based Telefon AB L.M. Ericsson, that have long dominated the Chinese market for wireless network equipment are faced with the possibility of losing sizable market share.
China is expected to try to give its own equipment makers a boost by launching its third-generation, or 3G, networks with its own technology standard, called TD-SCDMA, along with other standards. In the past 10 years, Chinese companies Huawei Technologies Co. and ZTE Corp. have been expanding aggressively in the global market and are ready to compete for 3G equipment contracts at home.