Beijing Nokia Mobile Telecommunications Ltd. has received a contract from the Zhejiang Post and Telecommunications Administration to supply a digital cellular network to the Zhejiang province of the People’s Republic of China. The contract is valued at more than $20 million. The Global System for Mobile communications network is expected to begin operating this year and initially will cover the cities of Wenzhou and China’s busy harbor city of Ningbo. Beijing Nokia Mobile is a 50-50 joint venture between Espoo, Finland-based Nokia and Beijing Telecommunications Equipment Factory of MPT. The venture was established by a cooperative agreement between Nokia and the Ministry of Post and Telecommunications. The Zhejiang system will offer services such as fax, data, short message service and voice mail.
Hongkong Telecom said its five-year, revolving credit facility will be increased from $323 million to $420 million. Syndication for the facility closed with a total commitment of $626 million from lenders, a subscription almost twice the original amount. Hongkong Telecom matched the response by increasing the facility by about 30 percent over the original offered amount of syndication. Twenty-four banks have joined the syndicate, representing financial institutions from nine countries. “The enthusiasm of the banking community to this fund raising demonstrates their strong confidence in Hongkong Telecom’s development plans within Hong Kong, China and the regional telecommunications market,” said David Price, Hongkong Telecom’s finance director. The facility was arranged by Societe Generale Asia Ltd., with Citicorp International Ltd., ABN-AMRO Bank N.V., Standard Chartered Markets and Hang Seng Bank Ltd. Syndicate members include Bank of America, Bank of Tokyo, JP Morgan, Royal Bank of Canada, Royal Bank of Scotland, NatWest Markets, Union Bank of Switzerland, Kleinwort Benson and Westdeutsche Landesbank.
L.M. Ericsson said it signed agreements valued at $250 million with Smart Communications Inc., which operates a cellular network in the Philippines. Under terms of the agreement, Ericsson will supply the equipment and build the fixed network for Smart’s local exchange service areas, as well as expand the company’s existing cellular mobile telephone network. The cellular network will be expanded to serve 300,000 subscribers, Ericsson said.
A contract valued at $20 million has been signed between Motorola Inc.’s International Cellular Infrastructure Division and Mobile Telecommunications Co., said Motorola, whereby the company will support the expansion of Mobile Telecommunications’ Global System for Mobile communications cellular network in Kuwait. Phase one of the expansion is scheduled for implementation by the end of the year and phase two in the first quarter 1996. The expansion will allow Mobile Telecommunications to serve an additional 100,000 subscribers, said Motorola. In the expansion project, Motorola plans to implement additional base station equipment and Siemens EWSD mobile switching subsystems. The GSM system was implemented in November 1994, noted Motorola.
