Ericsson Wins Fixed-Broadband Access Contracts From Three Chinese Operators

New York, NY (AHN) - Sweden's Telefon AB L.M. Ericsson (NASDAQ: ERIC) said Friday that it has won contracts to provide fixed broadband access to the three Chinese telecom operators, but did not disclose the value of the orders.

China Mobile (NYSE: CHL), China Unicom (NYSE:CHU) and China Telecom (NYSE:CHA) are the three companies that will receive enhanced systems to help them in the process of upgrading their networks.

The firms are preparing to provide high-speed broadband, high-definition IPTV and and quality voice services in Anhui, Guangdong, Hebei, Heilongjiang, Hubei, Liaoning, Shandong, Shanghai and Sichuan provinces

"It is exciting to see all three Chinese telecom operators deploying fiber networks across the country to deliver data-thirsty, high-quality services," Mats H Olsson, President of Ericsson Greater China, said in a statement today.

He added, "These initial rollouts in China, as well as the endorsements from around the world, have demonstrated yet again that cost-effective optical fiber solutions are becoming the leading technology for fixed deployment."

For these projects, Ericsson said it will roll out what are known as FTTH (fiber to the home) networks for all three operators, using broadband fiber-access technology (GPON or Gigabit Passive Optical Network), and its patented air-blown fiber solution.

Ericsson today said that it will also provide a range of professional services including competence development, network design and optimization, support services and consultancy, the company said.

Broadcom Corporation (Nasdaq: BRCM), a global leader in semiconductors for wired and wireless communications, is another company in the Chinese market that is planning to provide FTTH applications.

On Jun 21, Broadcom announced it will introduce a new family of Gigabit passive optical network (GPON) integrated access device (IAD) semiconductors to telecommunications providers and original equipment manufacturers (OEMs) in China this year.

The Broadcom's BCM6800 family of GPON gateway processors are designed to enable more cost effective optical network terminals (ONTs) or optical network units (ONUs) used in conjunction with service provider networks.

China is expected to boost global economy as the authorities in Beijing increase investments in domestic infrastructure and local companies expand businesses to untapped regions.

Stockholm-based telecom equipment vendor Ericsson, meanwhile, is trying to gain market share in the sector, competing with European rivals, including Nokia Siemens Networks (NYSE:NOK).