CDMA network tender ultra-low-pricing Huawei alleged unfair competition

Currently Huawei's CDMA market share is almost zero, the market has begun to attach importance to the Huawei Technologies, eager to get a place

China Telecom on the first phase of a CDMA network equipment bid controversy, in the absence of prior to the opening of tenders have been much uproar. Huawei open trade surplus for low-cost champion, yesterday said that the relevant equipment manufacturers, Huawei This has been suspected of unfair competition, the market does not rule out their means of corresponding measures.

According to a participation in the tender equipment manufacturers confirmed that China Telecom on August 18 to sing standard, Alcatel Lucent, Nortel and ZTE Corporation in the bid 14 billion to 70 billion, Huawei is reported to less than 700 million The ultra-low-priced yuan.

"In this large have never seen such a low single report." An internal equipment manufacturers who said that this was the "scorched earth" policy, some suspected of undermining the rules of the game. In a large single, some of the donated equipment or the local market strategy is a common gift, but in such large single-China Telecom, to such extent, so that everyone is very surprised.

China Telecom's CDMA network equipment tender mainly concentrated in the future to upgrade to the 3 G technology CDMA EV-DO. China Telecom has revealed that before 2003 is expected to net a total investment of C will be over 80 billion yuan. At present, China Telecom has a preliminary decision, the first phase will invest 27.9 billion yuan to improve CDMA in China Town in particular the central city of capacity and quality and network coverage in rural areas. This will enable China to become world's largest CDMA market growth point of.

Shanghai law firm lawyers in the Court explained Yu-yun, the Anti-Unfair Competition Law provides that operators can not squeeze out competitors in the purpose, to sell below cost price of goods. Only sales of fresh goods, the validity period will expire soon deal with the backlog of goods or other goods, seasonal price cuts, and the liquidation of debt, approach to changing products, prices and sales are closed except.

In addition, Yu-yun Court said that under the law, the bidders may not bid below cost pricing, or to name other bidders or fraud, defrauding the successful bidder.

There are equipment manufacturers of Huawei to do so because: 1, Huawei non-listed companies, the other listed companies do not "too far" Second, Huawei WCDMA market adjustment from the main attack on CDMA and TD for the market began to , In the CDMA market, Huawei eager to market base in China.

As previously Huawei will choose the strategic direction for GSM and WCDMA, CDMA in China's market share of almost zero. Guotai Junan report, Huawei in Unicom's CDMA market share of only 2 percent, in 2007 the domestic CDMA market share is 32 percent of ZTE, Motorola 23%, 22% Lucent Alcatel, Nortel 17%, in 2007 the global CDMA market share ZTE is 50 per cent, 26 per cent of Alcatel Lucent, Nortel, 12 percent, Huawei 12 percent.

In fact, the telecommunications equipment industry, the disadvantaged through low-cost manufacturers to enter the market, through expansion and upgrading of the latter part of the cost recovery profit, is a common practice. The State Securities analyst Chen Yun-hong, China Telecom need to have a good balance: Huawei reported surplus low-cost, will help China Telecom to lower prices of other equipment manufacturers. However, with a larger share of low pricing would affect the whole industry chain, may affect the quality of the network construction.

In recent days, "Huawei ultra-low-pricing access to telecommunications network C tender 70 percent share" of hearsay, ZTE has led to the sharp decline in stock prices, which had issued a statement saying that the tender had not yet been completed and the results have not been announced.

States that the securities, for the maintenance of fair competition and rationality, taking into account domestic and foreign enterprises balance the interests of a variety of considerations, the number of CDMA base stations is expected to share will be: 37% of ZTE and Huawei 21 percent, Azerbaijan Lang 23%, 13% motorized.

Recently, China Telecom will soon share the specific tender announced. There are equipment manufacturers who worry that, C network tender scene is just the beginning of this year, China Telecom will have multiple tender, and the future of Huawei's second new goal - the Olympics after two of the TD tender, may also be ushered Ultra-low-priced competition. C network on the tender, this reporter could not interview the people of Huawei.