ZTE, Perusat Sign Contract for Supply of Wireless Communication Solutions Broadband Equipment and Services

Monday, November 29,2010
By News Blog
By Kunal Vahalia, TMCnet Contributor
ChinaTel Group, Inc., revealed that its subsidiary Perusat S.A (Perusat) signed a contract for ZTE Corporation to provide Perusat services and equipment for deploying its wireless broadband services in Peru. Perusat signed a contract with ZTE to be the exclusive and only supplier of the equipment required for the project, which includes infrastructure, management and engineering services, consumer terminals. The total value of the signed contract is $48 million for the next seven years.
In the first phase, $6.98 worth of purchase orders have already been placed. ZTE will be financing 85 percent of the infrastructure equipment costs in the first purchase. The rest of the funds will be contributed by national banks in China who have a long standing relationship with the company.
In a press release, ChinaTel’s CEO, George Alvarez, said, “We are extremely excited about this new partnership with ZTE and its ability to deliver high end broadband equipment and network solutions. ZTE has the ability to create solutions that will migrate from the current WiMAX 802 protocol to 802.16m porotocol or the dual band 16m. Our relationship with ZTE will be a forefront of delivering global internet technologies as we begin to build robust infrastructure in countries such as China and Peru.
The first phase of deployment in seven cities is expected to be completed by May 2011. Perusat’s sales and marketing strategies will go hand in hand to make the commercial and technical launch of the network possible. The company will expand its capacity in each market according to the requirements of the subscriber. Perusat will be a 95 percent subsidiary and the results generated by the company will be reflected on ChinaTels’ financial report at the end of the year.

Kunal Vahalia is a TMCnet freelancer. He has several years of freelance writing experience, including a stint working for drugdelivery.ca as an SEO content writer. To read more of his articles, please visit his columnist page.
Edited by Jaclyn Allard
Investor News via ChinaTel