Huawei wins handset deal at MetroPCS

Huawei Technologies Co., Ltd. announced it will provide handsets to MetroPCS Communications Inc., making it the second Chinese handset vendor this month to do so.
Huawei’s M318 handset, a clamshell model, is the first in what is expected to be an array of its devices that subsidiary Huawei USA will sell to MetroPCS. The partners did not provide a price for the M318, whether it will be a carrier-branded or co-branded device, or mention the markets in which it will appear.
ZTE USA, the American face of the Chinese handset and network vendor ZTE Corp., announced Dec. 19 that it too will provide MetroPCS with handsets.
The Huawei and ZTE moves reflect two trends.
One is the effort Chinese handset makers are expending to gain a foothold in the high-profile and lucrative United States market, which offers prestige, press and brand-building opportunities. The other is the effort by network operators to purchase low-cost handsets from Chinese vendors and either self-brand or co-brand them – in part, to gain a source of revenue and to leverage its position in cutting deals with the world’s top handset makers.
Earlier this year, Vodafone Group plc – one of the world’s largest carriers – announced deals with Huawei for low-cost, Vodafone-branded handsets and with ZTE for low-cost 3G phones.
MetroPCS serves about 3.7 million subscribers in a dozen metropolitan areas in the U.S.