Alcatel just signed a multiyear deal with China Telecommunications Corp. to deploy about 50 percent of the equipment CTC needs for DSL in China. Estimates differ, since the deal will depend on market growth and the equipment needed in various provinces, but some set the contract at between $70 million and $225 million in the first year. Most of the business will follow in later years, Wall Street Journal reports.
Alcatel, a French telecom equipment manufacturer with some 50 percent of the global DSL market, signed the agreement in Beijing. The move optimizes China's copper line system and DSL costs as prices change over the next few years. China Telecom also is poised for a $4 billion to $6 billion IPO, though market conditions may postpone that.
Of China's more than 17 million Internet users, only 300,000 have broadband access, of which one-third have DSL.