Shanghai Telecom, a subsidiary of China Telecom, awarded a contract to Alcatel Shanghai Bell to supply a packet telephony solution for the heart of its future network. The solution includes the Alcatel Softswitch, the Alcatel Media Gateway, and the Alcatel Litespan Multi-service Access Gateway, accompanied by the Alcatel Open Services Platform with applications such as the personal communication assistant and video conferencing. The contract also encompasses an integrated network management system and a series of application servers and CPE devices. When completed by the end of this year, Shanghai Telecom will be able to provide fully integrated voice, data and multimedia services via ADSL and Ethernet to broadband and residential customers. The contract follows an extensive trial of the Alcatel NGN solution over the past year. The deal represents China Telecom's first commercial NGN contract. Financial terms were not disclosed.
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- Earlier this month, China Telecom awarded contracts to Alcatel to supply equipment for 920,000 new DSL lines. Under the contracts, Alcatel will provide the DSL lines to China Telecom subsidiaries in 18 provinces and municipalities in southern China including Shanghai, Sichuan, Zhejiang, Guangdong, Jiangsu, Fujian and Anhui by the end of the year. The installation includes the Alcatel 7300 Advanced Services Access Manager (ASAM) and the 5523 Alcatel ADSL Workstation (AWS) Element Management System. China Telecom is already using Alcatel equipment in its existing DSL network.
In May, China Telecom awarded a multimillion dollar contract to Alcatel Shanghai Bell for the construction of a new 10 Gbps DWDM network linking western and southern China.
In November 2002, Alcatel Shanghai Bell announced two major switching and transmission contacts with China Telecom. First, China Telecom will use Alcatel 1000 switching solutions and signaling transfer point equipment to span the two municipalities of Beijing and Tianjin, and eight provinces: Hebei, Heilongjiang, Henan, Inner Mongolia, Jilin, Liaoning, Shandong and Shanxi. This will enable inter-network transactions between China Telecom and other service providers. Second, China Telecom will install the Alcatel 1641 SX Multiservice Metro Gateway, an SDH multi-service cross-connect system, in the cities of Shanghai, Guangzhou, Chongming and Shantou.
In May 2002, Alcatel completed the integration of its key operations in China with Shanghai Bell. The new Alcatel Shanghai Bell, which is the first foreign-invested company limited by shares (CLS) in China's telecommunications sector, was expected to achieve about $2 billion in sales in its first year of operation, as well as more than $1 billion of exports within the first three years. Alcatel holds 50 percent plus one share in the company, with Chinese entities holding the remaining shares.
