Motorola announced yesterday that it scored a massive one-year contract, helping assure its long term global success. The company received a $310M USD contract from China Mobile, the largest cell phone provider in the world, based out of Beijing.
China, according to a 2006 estimate, has almost twice the cell phones of the U.S., with approximately 437 million deployed that year (compared 219 million in the U.S.). At the time, the European Union as a whole was a slightly bigger market, but it is thought to have since surpassed the EU. What makes China so attractive is that with a billion people, it still has lots of room to grow.
Motorola will provide China Mobile with GSM/GPRS/EDGE infrastructure. By pairing its GSM/EDGE technology with the provider's current TD-SCDMA technology (CDMA based), it should make the network more friendly to business travelers and more phone models (an estimated 80 percent of the world's phones are GSM based). Upgrading and interconnecting the nation's massive 2G/3G network will be a tough challenge for Motorola, but also a very lucrative opportunity.
Dr. Mohammad Akhtar, vice president and general manager, Home and Networks Mobility, Motorola China states, "Motorola has worked with China Mobile for more than 20 years. As a long-term strategic partner of China Mobile, Motorola is proud to continue being a part of its growth. Motorola has always been an innovator and pioneer in the mobile telecommunications industry. With the comprehensive end-to-end portfolio that covers 2G, 3G and LTE, Motorola stands ready to support China Mobile in building a state-of-the-art network that maximizes investments and delivers the most appealing communications experiences to its end users at home and on-the-go."
China Mobile was officially established in 2000; however, Motorola has enjoyed a long relationship with China's cell phone and telephone network service providers over the last couple decades. Among global telecommunications companies, Motorola's presence in China is one of the largest.