3gcells.jpgMotorola's China strategy is often painted purely in terms of its booming handset sales and its continuing tussle for leadership with arch-rival Nokia. But Motorola also supplies wireless network equipment and this less glamorous part of the business is also doing well in China.

The US firm has signed contracts worth almost $400m with China Mobile to expand the latter's GSM network in China. The multiple contracts were signed in the first half of 2007 and approximately 60% of the revenue from these contracts was recognised in that period.

The expanded networks have been successfully deployed across 16 provinces and municipalities.

Motorola and China Mobile have worked together for over 20 years. As of April 2007, China Mobile counted more than 330m wireless subscribers on its nationwide network.

Sooner or later, China like almost every other cellular market will evolve its infrastructure to support 3G services and higher-speeds, which will lead to a whole new round of investment in new infrastructure.

But Motorola's traditional GSM infrastructure business, meanwhile, is benefiting from the delay in moving to 3G which has forced China Mobile to update and expand coverage of its existing GSM network.

More on China's 3G woes in these stories.


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