Sunday , June 16 2024
Huawei Won $574 Million 5G Network Procurement Contract in China

Huawei Won $574 Million 5G Network Procurement Contract in China

Huawei has won a $574 million (4.1 billion yuan) 5G wireless network equipment centralized procurement contract. This contract by China Mobile will be carried out from 2023 to 2024.

Huawei secured 52 per cent of the China Mobile 5G contracts, representing 45,426 base stations, well ahead of cross town rival ZTE with 23,227 5G base stations.

According to the information, this round of centralized procurement is divided into two projects – 2.6GHz/4.9GHz and 700M. Huawei’s share in all project bids exceeded 50%. It is followed by ZTE, which won 23.35% to 37.33%. Meanwhile, Ericsson, Nokia Shanghai Bell, Datang Mobile, and others also made it up to the list.

As the most prominent player, China Mobile awarded a nearly 4.1 billion yuan ($574 million) bid to Huawei for its 5G procurement contract. ZTE’s winning bid amount exceeded 2.07 billion yuan ($280 million).

The expansion and centralized procurement of self-built 5G 2.6GHz/4.9GHz base stations. The telecom company co-built and shared 5G 700MHz base station equipment (using a single source method), with a total scale of more than 412,700 stations, and Huawei won the bid.

Huawei Technologies will supply over half of the 5G base stations for China’s top telecoms company China Mobile between 2023 and 2024, a deal which analysts say will help shore up its core revenue base after losing its lucrative smartphone business amid tough US sanctions.

The deal would involve the sale of 45,426 5G base stations worth about 4.1 billion yuan (US$574 million), according to calculations by the South China Morning Post using bid details published by China Mobile.

China Mobile’s earlier guidelines showed that by the end of this year, the cumulative opening of 5G base stations would reach 1.645 million stations, an increase of 360,000 stations for the year.

The data released by the company in early June shows that the cumulative number of 5G base stations opened has exceeded 1.6 million. The industry expected that the number of 5G base stations of China Mobile will exceed 2 million.

About Bukola Olanrewaju

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