Wed, Jan 12, 2011 - Page 11 News List

Huawei wins bid in long-time Ericsson-dominated Norway

AFP, STOCKHOLM

Nordic telecoms giant TeliaSonera said yesterday it had awarded part of a network construction contract in Norway to Huawei (華為), giving the Chinese telecom equipment maker an entry into a market long dominated by Sweden’s Ericsson.

The contract, which is to be shared with Ericsson, is to upgrade TeliaSonera’s existing second and third-generation (2G and 3G) mobile networks in Norway and to extend the reach of its 4G network there, the Swedish--Finnish telecoms company said in a statement.

“Huawei is providing equipment for the southern part of the network and Ericsson for the northern part” of Norway, where only about 20 percent of the population lives, the company said.

Following the news, Ericsson’s share price fell slightly, but it inched back up 0.46 percent to 76.35 kronor in midday trade on the Stockholm Stock Exchange.

Huawei, which was founded more than two decades ago, has in recent years experienced booming growth at the expense of major telecoms equipment players — Ericsson, Nokia Siemens and Alcatel-Lucent.

At the end of 2009, the Chinese company won contracts in Sweden with Norwegian operator Telenor and Sweden’s Tele2 for their 4G network roll-outs, which were completed late last year.

Huawei had previously threatened to unseat Ericsson from 4G contracts with TeliaSonera, but had until now only been handed a deal to provide equipment to part of the Oslo network.

TeliaSonera, which is battling Telenor for market leadership in the Nordic region, is at the forefront of the 4G network roll-out.

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