China in Africa
9. China's Telecommunications Footprint in Africa
China’s
increased
involvement
in
the
African
telecommunications
industry
is
part
of
amultidimensional
engagement
in
the
continent
to
serve
its
broader
strategy
to
enhance
itsglobal
standing,
counter
Western
influence
and
to
obtain
resources
and
new
exportmarkets
to
feed
its
rapidly
expanding
economy.
Alongside
construction,
energy
andmining,
telecommunications
is
one
of
the
four
strategic
pillars
underpinning
China’seconomic
development
and
providing
the
necessary
platform
from
which
to
challenge
theWest
for
global
hegemony.
It
is
therefore
regarded
a
vital
industry
for
Chinese
strategic
interests
on
several
fronts:
- Acquisition of foreign technology
- Dual use military application
- Reinforcing China’s space and satellite development programme
- Breaking into new markets.
Such
assessments
are
closely
driven
by
the
Chinese
Communist
Party
(CCP)
and
relatedministerial
and
strategic
planning
institutions
which
have
as
their
primary
mandate,
theemergence
of
competitive
international
companies
aligned
with
the
strategic
politicalconsiderations
of
the
motherland.
Importantly,
Chinese
telecom
companies
do
not
operatein
isolation
but
operate
in
tandem
with
Chinese
geo-strategic
objectives.
This
makes
theneed
for
effective
countervailing
strategies
all
the
more
important
in
dealing
with
Chinesetelecommunications
challenge
in
Africa.
Initial
assessments
suggest
that
China
has
chosen
several
hubs
from
which
to
roll-out
itstelecommunication
strategy
on
the
continent.
These
include
Egypt,
Algeria,
TunisiaKenya,
Nigeria
and
South
Africa.
Leading
the
pack
are
Chinese
heavyweight
companies
such
as
Huawei
Technologies,Zhongxing
Telecom
Ltd
(ZTE)
–
both
linked
to
the
Chinese
military
and
intelligenceestablishments,
China
Telecom,
and
Alcatel
Shanghai
Bell
(ASB).
Improving
technicalcapacity,
linked
to
low
costs
of
production,
access
to
cheap
state
subsidized
fundingsources
and
state
political
support
provide
such
companies
an
important
competitive
edgenot
available
to
independent
telecom
companies.
9.1. The Chinese Business Method
The links between telecom deals and China’s African strategy are not new. According toMark Natkin, managing director of Beijing-based IT and telecom consultancy Marbridge: “Chinese telecom vendors have identified opportunities in developing nations and canleverage their price advantage to develop relationships that vendors from rich countriescan’t be bothered with. China is taking a much longer-term approach that better integratesbusiness and political objectives. If you’re the company that gets in there and builds thecore network, you have a good shot at winning all upgrade contracts to follow. It’s likebetting on a portfolio of high-risk stocks. Many will be losing propositions, but those will beoutweighed by the few that take off”.
Importantly, Natkin added: “It might be coincidental, but many of the telecom deals doneby Chinese vendors in Africa and other developing countries have been with oil-producingcountries”. Part of Chinese economic penetration strategies into new markets is to letChinese oil companies act as the vanguard of Chinese business and later politicalinterests. Chinese oil companies allow for low-level intrusion into new markets withoutattracting unnecessary attention. But they inevitably herald an influx of governmentofficials, mainly from the intelligence community, to help assess both business and politicalopportunities in such countries. This has been especially evident in countries in Africawhich have not had diplomatic relations with Beijing, most notably Chad (prior to 2006)and Sao Tome Principe.
Compared to the established Western telecom gear-makers, Chinese companies offermore cost-effective equipment and solutions. In addition, according to Zhou Tao,executive vice-president of ASB, the Chinese Government's increasing financial support toAfrican countries is also giving a boost to the establishment of telecom infrastructure.
The Chinese government’s role was underlined in 2004 when Deputy Minister ofCommerce Chen Jian stated: “China will further expand telecom cooperation with Africannations in line with mutual benefits and common development. Moreover, the Chinesegovernment will support its telecom enterprises to run more telecom services in Africa."This in a nutshell explains the core of the Chinese telecommunication strategy in Africa.
Some important strategic indicators underlining the business threat posed by Chinese telecoms companies are the following:
- As a result of government support for its telecommunication companies, Chineseflagship companies, Huawei Technologies, ZTE and ASB can keep their pricesextremely low, and tailor-make solutions for poor African countries. Critics of ZTE andHuawei point out that they sell cheaply to troubled governments like the regimes inAlgiers or the Sudan in deals that effectively amount to foreign aid, and with the fullsupport of the Chinese government. For example, because of its “national champion” status in China, ZTE can obtain lowcostmoney that it can then lend to its own customers. Loans for African contracts arebeing encouraged via preferential loans from government banks, which amount to a defacto subsidy. Money is funneled through lending channels, via preferential loans fromthe China Ex-Im Bank, through the China Development Bank. [See below.] According to Russell Southwood, CEO of Balancing Act (a consulting firm and onlinepublisher specializing in internet and telecoms in Africa) all major telecoms equipmentproviders engage in customer financing, but in ZTE’s case there is no transparency incustomer lending: “Not only are they offering preferential loans, but it’s impossible totell what add-ons become part of the package. They’re likely to say ‘if you wantsomething like Extra Departmental Branch Offices (EBDO - a 3G mobile voicetechnology), we’ll wrap it into the price,’” explained Southwood.
- Chinese companies establish themselves as key suppliers early in the development ofeach market. They then position themselves to win subsequent network upgrades aseconomies improve. They also gain an opportunity to showcase and refine its moreadvanced technologies-for example, Wideband - Code Division Multiple Access (WCDMA)networks deployed in Tunisia and Libya. Countries are concerned more aboutprice and less about track records. Leveraging their experience in these markets andadding low-cost African production facilities to reduce freight expenses, the companiesthus pave the way for future expansion in Africa.
- Chinese companies can offer services and products at a fraction of the cost of theirWestern counterparts because of the abundance of labour and low paying salaries.For example, China has an annual turnout of two million engineering graduates, whileFrance has 300 000 and Germany just 100 000. However, average annual salaries ofengineers in China only amount to US$19 000 per year as opposed to roughly US$110000 in Germany and France. Likewise, Chinese labourers work 50 hours on averageper week, whereas French and German labourers work 38 hours.
- According to Chinese officials from Ministry of Information Industry (MII), China, as adeveloping country, has similarities with developing countries in Africa and enjoys arich experience in ICT development from the perspective of a developing country. Thedirector said that Africa needs all kinds of capacity building, such as the training forboth students and teachers, and capacity building and e-learning are a key factor topromote the development in the continent.
-
In
West
Africa,
companies
in
the
area
say
they
find
procuring
equipment
from
Chinesecompanies
attractive
for
an
array
of
reasons.
For
instance,
ZTE
offered
the
bestproposal
in
terms
of
price
when
Kasapa
Telecom
Ltd.,
a
subsidiary
of
HutchisonTelecom
and
one
of
four
mobile
operators
in
Ghana
wanted
to
procure
equipment."Five
vendors
submitted
proposals;
two
Chinese
and
three
were
not.
ZTE
won
on
thebasis
of
price,
speed
and
service
and
demonstrated
commitment,"
according
to
RobertPalitz
Managing
Director
of
Kasapa.
He
further
elaborated:
"We
have
the
ability
todirect
the
growth
of
the
network
over
the
contract
period
so
that
we
can
quicklyrespond
to
marketplace
conditions
while
benefiting
from
the
prices
negotiated.
Thevendor
includes
quality-of-service
parameters.”
Asked about the outlook for Chinese telecom equipment vendors in Africa, Palitz said:"I can’t predict but certainly the non-Chinese vendors have a challenge to meet inmarkets where increased penetration will depend on lower costs per subscriber. As theChinese vendors become more experienced in project management outside China, thehistorical advantage of older vendors may diminish." - Zhou Tao, executive vice-president of ASB states that Chinese Government'sincreasing financial support to African countries is giving a boost to the establishmentof telecom infrastructure. The Export-Import Bank of China granted ASB financialassistance of US$63,3 million in 2004 to aid its overseas expansion. "As China andAfrican countries build solid political mutual trust, African countries are willing to getChinese companies involved in more infrastructure projects," said Zhou. "We believeChinese telecom equipment makers will have even bigger business opportunities inAfrica in the future."
- According to Victor Yip, an analyst with UOB Kay Hian Securities in Hong Kong:"Doing business in China has taught ZTE and Huawei to focus on keeping theirproducts simple and cheap. People in developing markets don't need fancy (sic) - theywant something that works."
- According to Richard Windsor, communications equipment analyst with Nomura, oneof the greatest threats that Asian (Chinese and Indian) mobile terminal manufacturerspose to their US and European counterparts is their comparative openness to the socalled‘white label’ phone model, where operators can brand the mobile phone as theirown or other vendors can purchase components (from the Asian manufacturers) tomake the terminal themselves. Duncan Clark, chairman of BDA Consulting, a telecomsresearch firm based in Beijing stated in this regard that “ZTE is willing to forgo itsbranding, go the white label approach and customize to what operators and customerswant.”
- According to Shi Lirong, senior vice president of ZTE, one reason why a growingnumber of service providers in Europe and North America are forging new partnershipswith Chinese suppliers is because their relationships with traditional partners are failingto deliver: “R&D cost-cutting exercises over recent years may have lost Western-basedtelephony equipment manufacturers-including Lucent/Alcatel, Nortel, Siemens-theirtechnological edge in the market place,” he says. “However, the story is radicallydifferent for Chinese equipment manufacturers that have so far concentrated salesefforts on developing areas. We haven’t had those problems,” he says. “There was nobubble to burst in these countries, so the trading environment is normal. Marketinvestment is still increasing. For R&D investment there is no problem; we are stillincreasing budgets.”
- Finally China is always careful to engage potential clients at the highest possible level.A macro-strategic intervention approach is key to winning over the power elites, whichwill buy into any proposed business plan. Only then do Chinese officials work downthe food chain to engage with local parastatals and businessman, unless they are alsowell connected to the power elites.
9.2. Targeted Countries in Africa
The top African telecom markets for Chinese companies are Algeria, Egypt, Tunisia,Morocco and South Africa, comprising 60 percent of China’s total telecom assets on thecontinent. Outside of these, only Nigeria and Angola are becoming truly significant. Ofimportance here is that Chinese telecommunication developments in Africa have initiallyfocused on coastal countries – those that strategically straddle main shipping routes andstrategic choke-points – known in military parlance as sea lanes of communications(SLOCs). Tracking shipping movements, especially in times of war, suggests that Chinesetelecom investments in Africa closely follow global strategic considerations of the CCPwhen it looks at the global nature of its telecommunications strategy. It is of course not thesole motivating factor for its investment decisions related to telecoms, but it is a significantone.
A second tier of countries are those which provide market access or springboards forinvestment into other regional sectors of the sub-continent, or which are rich in energy andnatural resources, critical for China’s economic growth prospects. In the first instance,Kenya is a useful example, given its strategic location in East Africa. Sudan is an exampleof the second instance where its oil riches provide China with over 300 000 barrels of oilper day or some 7 to 8 percent of its total oil imports. Other second tier countries include:Angola, Ethiopia, Ghana, Ivory Coast, Tunisia and Zimbabwe.
There are important military and security considerations linked to China’s penetration ofthe African telecoms market. For example, the most important main fixed base related toBeijing’s space programme outside of China, entirely manned by PRC technicians andbuilt with Beijing money and technology, is the coastal Namibia tracking station inSwakopmund. Chinese companies responsible for the more sensitive construction tasksincluded: China Great Wall Industry Corp (CGWIC); China State Construction Group,Windhoek; China Aerospace Machinery and Electronics Corporation (CAMEC); and ChinaAerospace International Holding Ltd (CASIL).
9.3. The Role of Telecoms Alliances in Africa
Looking at the pattern of China’s penetration of the African market, the following emerges:
- Chinese firms will link up with global operators to a) piggyback their existing networksto sell their product and service lines, and b) use as launch pads to penetrate andentrench themselves in new markets.
- Link up with local telecom companies to access political leverage to clinch deals in targeted countries.
- Link-up with fellow Chinese companies to compete against foreign companies for contracts.
- Avoid JVs with non-Chinese companies in the absence of the above criteria.
Against this background, the opportunities in the African market are obvious. For instance, the number of mobile phone subscribers in Africa hit 280 million in May 2008 (compared to 76,8 million in 2004 and just 7,5 million in 1998) representing a market penetration rate of over 30 percent. All the major Chinese companies already involved in the African market have categorically stated their intent to focus on Africa for future growth. Key to their future strategy in the market will remain competitive pricing, the expansion of wireless connections and partnerships with major western companies.
The African environment enjoys a positive outlook as far as the wireless market is concerned. 3G services have been commercially available since 2003 in Africa. Further 3G launches are expected. ZTE’s exciting TD-SCDMA system is destined for the African market after passing tests with flying colours last year. It was successfully tested at the Beijing Olympics, where ZTE was the largest supplier of TD-SCDMA handsets for the Olympics. The company supplied about 30 percent of the purchase order placed by China Mobile, thus making the company the biggest 3G provider of both network infrastructure and handsets of the global sporting event. The handset division was one of ZTE’s fastest growing units in 2007, with year-on-year sales revenues growing by 69,16 percent shipping over 30 million handsets in 2007.
9.3.1. Selected Important Partners and Contracts
Looking at the role played by foreign alliances in China’s entry into the African market, the following is noted:
-
In
December
2006
Comptel
Corporation
(A
leading
Helsinki-a
leading
OSS
software
vendor
for
convergent
mediation,
charging,
provisioning
and
network
inventory)
was
selected
by
Huawei
as
a
qualified
partner.
This
means
that
Comptel
is
a
preferred
Huawei
partner
for
the
deployment
of
mediation
&
provisioning
services
to
its
customers.
Huawei
and
Comptel
have
already
delivered
joint-projects,
including
a
CDMA
Voice,
Data
Provisioning
and
Mediation
solution
for
Telecom
Namibia.
[Note: The Comptel InstantLink provisioning solution covers all the processes from accepting an order to activating a billable service. It interacts with Huawei equipment, allowing service providers to activate new customers and services fast and efficiently.Comptel Eventlink is a convergent mediation solution that is designed to collect and process usage information from many diverse sources, including Huawei network elements, and forward them to billing systems. ]
Comptel has been present in the Middle-East and Africa region since 1997 including countries like South Africa, Namibia, Nigeria, Ghana, Morocco, Sudan, Oman, UAE, Qatar, Pakistan, Jordania and Saudi Arabia. Comptel was established in 1986 and is listed on the Helsinki Stock Exchange (CTL1V) in Finland. -
In
October
2006
Emirates
Telecommunications
Corporation
("Etisalat")
selected
Huawei
as
its
major
supplier
for
the
construction
of
its
nationwide
UMTS/HSPA
network.
Under
the
3-year
contract,
Huawei
will
provide
the
new
generation
UMTSequipment
including
more
than
one
thousand
Node-B
base
stations
for
the
construction
of
a
nationwide
(UMTS/
HSPA)
network,
which
will
be
the
first
HSPA
network
based
on
Iub/IP
(Interface
UMTS
B/
Internet
Protocol)
transmission
in
the
Middle
East
and
North
Africa.
Huawei
has
been
working
with
Etisalat
since
December
2003
for
the
launch
of
its
commercial
3G
services
in
the
UAE.
Etisalat
has
networks
covering
more
than
14
countries
including
Egypt,
Saudi
Arabia
and
Sudan.
Etisalat
is
also
involved
with
The
East
African
Marine
Systems
(TEAMS)
initiative,
which
aims
to
provide
more
submarine
cable
links
to
the
continent,
particularly
East
Africa.
Etisalat represents an important cog in Huawei’s ongoing expansion plans in both Africa and the Middle East. For example, in 2006 a consortium led by Etisalat won the rights to develop Egypt's third mobile network, with a winning bid of 2,29 billion Euro. The network is being built jointly by Ericsson of Sweden and Huawei at a cost of approximately US$1,2 billion. The venture, Etisalat Egypt, competes with existing service providers Vodafone and Mobinil.
During the Financial Times Telecom World event held in London, in November 2007 Etisalat COO Ahmed Abdulkarim Julfar, confirmed that the company has further major expansion plans in Africa.
[Note: Etisalat ranks among the Financial Times Top 500 Corporations in terms of market capitalization and is the sixth largest company in the Middle East in terms of market capitalization according to London-based magazine, The Middle East.] - Huawei was selected by South Africa’s MTN, which is the largest mobile operator in Africa, as a strategic partner. MTN, which is one of the largest cross-national mobile operators in southern Africa, selected Huawei's GSM Base Station Sub-System (BSS) to support its GSM expansion project in order to meet Africa's increasing demand for mobile services.
- In late 2006 Huawei was selected by Comium Mobile to build a GSM network in Cote d'Ivoire. The contract includes providing a full turnkey GSM, GPRS, 3G and Intelligent Network. The project adopted Huawei's EnerG GSM solution and new generation GSM Dual Density Base Transceiver Station, or BTS. Comium Mobile selected Huawei as a result of a successful three year partnership with Huawei in Sierra Leone and Liberia, to deploy the GSM network. [Note: Comium is aggressively pursuing the acquisition of new licenses across West Africa. Comium Mobile is a fully owned subsidiary of the Comium Group Luxemburg. In addition to the Ivory Coast, Comium is licensed to carry out GSM 900/1800, International Voice and Broadband Wireless Internet services in Liberia and Sierra Leone. It offers integrated mobile and telecom services comprising of post-paid and prepaid voice communications, value-added services, SMS, and secure high speed Internet Access, together with low cost alternative International calling card services.]
- In 2006 Oasis Sprl, the Congolese operation of Millicom International Cellular awarded Huawei a turnkey contract to provide a new GSM network. Under the first phase of the contract, Huawei supplied and installed its Huawei EnerG GSM technical platform and deployed more than 500 base stations across the country. The network offers voice communication as well as high speed Internet, video on demand, MMS and electronic payments. The initial phase of the network covered 85 percent of the population in the largest 182 cities. [Note: Millicom Incorporated was formed to pursue cellular telephone opportunities in America, and in 1982, was awarded by the US Federal Communications Commission one of three cellular development licenses. In 1982, Millicom founded, with Racal Electronics Plc, a joint venture which evolved into Vodafone Group Plc. Millicom International Cellular S.A. (“MIC”, “the Group”) was formed on 14 December 1990 when Industriförvaltnings AB Kinnevik of Sweden and Millicom, contributed their respective interests in international cellular joint ventures to form the Group. In 1993, MIC entered into discussions with Millicom, regarding the acquisition of Millicom. MIC officially began trading on NASDAQ on 31 December 1993. As a consequence of the merger MIC acquired all Millicom’s interest in MIC plus MACH and Millicom’s interest in 3C (UK), a UK based pay telephone operation. The remaining businesses of Millicom, including its successful satellite TV operations, the broadband license for Britain and Innova Inc, a computer networking company, were contributed to a new company, American Satellite Network Inc.]
Its operations in Africa are as follows:
- In 2005 ZTE signed a technology agreement with Portugal Telecom which heightened ZTE's prospects in Africa. The R&D Memorandum of Understanding (MoU) involves product and service development, and gives both companies a chance to enter new markets. It also allows for the two firms to jointly bid for carrier projects- PT holds stakes in operators in Angola, Cape Verde, Kenya, Morocco, and Mozambique.
- In 2005, ZTE also signed a deal with France Telecom to become its global supplier of Asymmetric Digital Subscriber Line (ADSL) equipment. France Telecom has 118,6 million customers worldwide. It also has an agreement with Alcatel to integrate its Code Division Multiple Access (CDMA) radio access portfolio into Alcatel’s CDMA endto-end solutions. [Note: France Telecom has a fairly large presence in the telecommunications industry in Francophone Africa, with majority or controlling interests in Senegal (Sonatal), Mali (the SNO Ikatel), Côte d’Ivoire (Côte d’Ivoire Telecom) and Mauritius (Mauritius Telecom). Specifically ZTE will play a key role in a 100 000-line CDMA telecom project in Egypt for the CDMA upgrade slated for Cairo and the Nile Delta.]
- In 2003, ZTE, joined with a regional telecom group in Africa known as Comtel to install a new communication system in 20 countries on the continent. Approximately $240 million will be spent to complete the project to install Asynchronous Transfer Mode (ATM) technology for Africa's major free trade bloc, the Common Market for Eastern and Southern Africa (Comesa). ZTE will implement the project, installing the fibre optic cables on existing telecom pylons or electricity power lines linking the Comesa region, which extends from Egypt to Swaziland. The Chinese company will become a major shareholder in Comtel as it had committed a substantial amount of money towards the $240 million required for the project.
Comtel
was
established
by
Comesa
as
an
initiative
to
promote
the
establishment
of
a
regional
telecommunications
network
in
the
region.
Registered
in
Mauritius
on
26
May
2000,
Comtel
is
set
to
save
Africa
$120
million
each
year,
the
amount
paid
to
Western
countries
for
the
use
of
their
telecom
circuits
for
carrying
international
calls.
Comtel
will
also
introduce
a
direct
telecom
link
between
Comesa
member
states
and
other
parts
of
the
world.
Currently,
many
calls
from
Africa
have
to
pass
through
New
York
to
get
to
Asia.
The
20
Comesa
members
are
Zambia,
Zimbabwe,
Kenya,
Malawi,
Namibia,
Seychelles,
the
Democratic
Republic
of
Congo,
Egypt,
Mauritius,
Angola,
Ethiopia,
Uganda,
Sudan,
Rwanda,
Swaziland,
Burundi,
Eritrea,
Djibouti,
Comoros
and
Madagascar.
China’s
participation
in
this
project
emphasizes
the
high
priority
being
afforded
to
economic
engagement
with
African
countries
in
the
field
of
telecommunications.
Cumulatively,
the
ICT
sector
in
Africa
attracted
a
total
of
almost
US$3
billion
of
Chinese
investment
between
2001
and
2007.
China’s
involvement
in
the
ICT
sector
in
Africa
mainly
takes
the
form
of
equipment
sales.
In
some
cases,
this
involves
normal
commercial
contacts
between
Chinese
manufacturers
and
public
and
private
operators
in
Africa.
However,
in
some
cases,
it
entails
inter-governmental
financing
tied
to
purchases
of
Chinese
equipment
by
state
owned
telecom
incumbents.
While
international
attention
has
tended
to
focus
on
Africa’s
new
private
operators
such
as
Vodacom,
MTN
and
Celtel,
Chinese
firms
are
emerging
as
key
players
in
the
supply
of
technology
and
equipment
for
networks
typically
to
national
telecom
incumbents.
By
far
the
largest
ICT
project
has
been
in
Ethiopia
(US$1,5
billion),
which
involved
the
associated
rollout
of
mobile
coverage
in
rural
areas.
The
four-year
project,
which
was
initially
agreed
upon
in
2006,
was
to
be
undertaken
by
ZTE,
Huawei,
and
Chinese
International
Telecommunication
Construction
Corporation
(CITCC).
It
was
expected
that
if
completed,
the
project
will
more
than
double
the
country’s
optical
fiber
deployment,
more
than
triple
mobile
network
expansion
capacity,
double
rural
telecom
coverage,
and
quadruple
the
length
of
the
fixed
telephone
network.
In
2007,
ZTE
commenced
construction
of
the
fist
two
phases
of
the
project.
The
three
most
active
Chinese
telecom
equipment
supply
firms
were
state-owned
ZTE
Corp,
privately
held
Huawei,
and
the
mixed
private-public
50-50
French-Chinese
joint
venture
Alcatel
Shanghai
Bell.
In
most
of
the
cases
recorded
by
the
database
the
state-owned
Chinese
banks
directly
provided
the
funds
for
the
equipment
to
the
host
government.
In
some
cases,
ZTE
was
able
to
finance
its
deals
through
standing
line
of
credit
with
China
Ex-Im
Bank
of
US$500
million,
issued
in
2004.
Similarly,
Huawei
was
granted
US$600
million
export
seller’s
credit
from
China
Ex-Im
bank,
as
well
as
US$10
billion
in
credit
financing
from
the
China
Development
Bank,
both
in
2004.
It
is
important
to
stress
that
these
lines
of
credit
were
given
to
the
contractor
firms
for
their
worldwide
operations.
A
salient
example
of
China’s
ICT
projects
is
the
National
Communication
Backbone
Infrastructural
Project
in
Ghana,
agreed
to
in
June
of
2006,
whereby
the
China
Ex-Im
Bank
is
financing
US$31
million
of
a
US$70
million
project
initiated
by
the
Ministry
of
Communications
through
a
concessional
loan.
The
project
is
aimed
at
rehabilitating
and
expanding
fixed
line
communications
technology
in
the
country.
9.4. Chinese Telecommunications Companies in Africa
Huawei Technologies
Huawei
is
the
main
supplier
to
telecommunication
giants
China
Telecom
and
China
Unicom,
and
one
of
the
world’s
ten-largest
producers
of
telecom
equipment.
Its
main
products
include
switching
systems,
intelligent
networks,
Synchronous
Digital
Hierarchy
(SDH)
transmission
networks,
wireless,
datacoms,
broadband
integrated
services
(BISDN),
power
supplies,
and
freespace
optical
systems.
Company
sources
claim
that
“only”
one
percent
of
sales
involve
military
customers,
although
this
likely
deflated
number
still
represents
more
than
US$30
million
per
year
in
equipment
sales
and
service.
Huawei's
products
and
solutions
are
deployed
in
over
100
countries
and
serve
31
of
the
world's
top
50
operators,
as
well
as
over
one
billion
users
worldwide.
In
2006,
it
had
annual
revenues
of
US$8,2
billion
and
over
44
000
employees.
Over
half
its
revenues
came
from
overseas
sales
(US$
4,
8
billion).
Huawei
is
often
described
as
“a
Chinese
firm
with
close
ties
to
Beijing's
military
and
a
history
of
illicit
exports
and
industrial
espionage”,
an
allegation
it
vehemently
rejects.
ZTE communications
Originating from the Number 691 electronics factory under the China Aerospace Industry Corporation (CAIC), Zhongxing Telecom (ZTE) has grown to become China's largest listed telecommunications equipment manufacturer and wireless solutions provider. It lists shares in Hong Kong and Shenzhen and is China's second-biggest telecom equipment vendor after Huawei Technologies Co. The company develops and manufactures telecommunications equipment for fixed, mobile, data and optical networks, intelligent networks and next generation networks as well as mobile phones. The company has aggressively expanded in developing markets by exporting networking products, establishing joint ventures and investing in local communication operations. ZTE Chairman Li Taifong publicly confirmed in October 2006 that the African market has been targeted by the company as its “next business hub." ZTE has established three WiMAX R&D centers in America and China since its WiMAX operations began in 2002. With more than 400 R&D personnel dedicated to WiMAX operations, ZTE owns a growing patent portfolio in the WiMAX field.
Alcatel Shanghai Bell (ASB)
Alcatel-Shanghai Bell (ASB) is one of the biggest telecommunications equipment and solution suppliers in Asia. ASB is the Chinese flagship company of Alcatel-Lucent in Asia Pacific. It is the first foreign invested company limited by shares in China’s telecommunications industry, with extensive global resources. ASB benefits from Alcatel- Lucent’s comprehensive next-generation (NGN) portfolio. In 2007 ASB teamed up with Datang Mobile (which initially developed TD-SCDMA network solutions) to provide TD-SCDMA to Chinese service provider, China Mobile. Datang and ASB deployed TD-SCDMA for China Mobile in Shanghai and in the southern city of Guangzhou. ASB provided the Node B equipment to be used in the network.
China Mobile
China Mobile Limited, China’s largest telecoms company, was listed on the New York and Hong Kong Stock Exchanges in 1997. As the leading mobile services provider in China, the group boasts the world's largest unified, contiguous all-digital mobile network and the world's largest mobile subscriber base. In 2006, the Company was once again selected as one of the "FT Global 500" by Financial Times , and in the "The World's 2000 Biggest Public Companies" by Forbes Magazine . In April 2007 China Mobile indicated that it planned to buy companies in Africa and Southeast Asia as growth accelerates in those regions. However, it denied reports that it was planning to buy a stake in South African based mobile player, MTN Corp. However, sources confirm that for a period, MTN was the target of some sort of Chinese acquisition attempt. [See below]
9.5. Some Country Case Studies
Algeria
Algeria
is
one
of
China’s
key
strategic
allies
in
Africa.
The
two
main
reasons
for
this
have
to
do
with
oil
and
the
war
on
terrorism.
On
the
energy
front,
Algeria
was
the
first
African
country
visited
by
Chinese
President
Hu
Jintiao
during
his
first
ever
overseas
trip
after
becoming
president
in
2003.
He
touched
down
in
Algiers
in
early
February
2004
and
signed
several
agreements
related
to
the
energy
and
telecommunications
sectors
within
the
broad
framework
of
a
new
strategic
cooperation
agreement.
However,
China
was
already
active
in
Algeria’s
telecoms
industry
prior
to
Hu
Jintao’s
.
visit.
Huawei
was
established
in
Algeria
in
1999
and
today
has
access
to
over
80
percent
of
all
the
operators
and
private
network
markets
in
Algeria.
The
company
is
the
biggest
CDMA
wireless
local
loop
(WLL)
system
and
terminal
provider
in
Algeria,
and
provided
Algeria
Telecom
with
a
wired
and
wireless
integrated
CDMA
WLL
network
solution,
which
adopts
an
integrated
switch
centre
(C&C08)
that
can
merge
with
Algeria
Telecom's
existing
PSTN.
In
addition,
the
network
can
connect
with
Honet,
fixed
telephone
line,
ADSL
and
other
vendor's
CDMA
WLL
equipment,
making
it
extremely
flexible
and
requiring
less
start-up
costs
to
construct
the
Algerian
access
network
which
covers
7
provinces
through
113
000
lines.
In
April
2003
Huawei
was
tasked
with
expanding
Algeria's
GSM
network
in
14
regions.
In
2005,
Huawei
won
the
bid
of
the
purchased
items
for
the
next
generation
backbone
transmission
network
equipment
from
Algeria
Telecom.
This
project’s
backbone
transmission
network
will
cover
all
territories
within
Algeria,
which
requires
the
network
and
equipment
to
be
able
to
provide
abundant
data
service
characteristics,
intelligent
characteristics,
and
high
reliability
of
next
generation
network
oriented
applications.
Huawei
won
the
project
thanks
to
its
customized
ASON-based
OptiX
OSN
system.
In
March
2007
Huawei
was
selected
by
the
Algerian
federal
railway
-
Société
Nationale
des
Transports
Ferroviaires
(SNTF)
to
provide
a
GSM-R
communication
solution
for
the
220
kilometer-long
Tabia-Mecheria
railway
line,
an
important
passenger
transport
route
in
Algeria.
In
terms
of
the
contract
Huawei
will
provide
GSM-R
network
design
and
engineering
services
to
SNTF,
with
ALSTOM
supplying
the
railway
signalling
system.
When
completed,
the
Tabia-Mecheria
line
will
be
Algeria's
first
modern
railway
equipped
with
world-class
GSM-R
technologies.
In
May
2007
Huawei
officially
launched
the
CDMA
2000
1xEV-DO
network
in
Algiers,
the
capital
of
Algeria.
With
Huawei's
LiteFME
solution,
Algeria
Telecom's
PSTN,
CDMA
WLL
network
and
ADSL
network
can
be
converged,
including
CRBT
(Colour
Ring
Back
tone),
EV-DO
data
service,
pre-paid
portal
for
EV-DO
service,
video
phone
in
fixed
network
and
Integrated
Centrex,
which
is
a
PBX-like
service
for
enterprise
users.
[Note:
Earlier
in
2007
Algeria
Telecom
launched
three
new
services,
'ADSL
Assila
Pack
Pro
3000',
'ADSL
Assila
Pack
Pro
4000'
and
'ADSL
Assila
Pack
Pro
8000'
for
its
business
customers
with
speeds
up
to
8
Mbps.]
Other
developments
include:
- The donation by the company of telecom equipment including GSM, CDMA, switching and access products worth US$ 30 million
- The establishment of a training centre towards the end of 2006.
- The opening of a new regional office for northwest Africa in Algiers in September 2007.
- Work currently taking place on the trial project of EV-DO Rev.A, which can reduce the customers' OPEX, CAPEX and user churn while increasing service revenue.
ZTE
In
2003,
ZTE
secured
a
contract
to
build
Africa´s
largest
CDMA
WLL
in
Algeria,
after
presenting
a
bid
for
a
mobile
network
that
was
18
to
21
percent
less
expensive
than
comparative
bids
made
by
US
companies.
The
final
contract
was
worth
US$32
million,
for
a
first
phase
of
installation,
with
several
spin-offs.
Prices
were
kept
low
by
the
company,
due
to
a
Sinosure
supported
Industrial
and
Commercial
Bank
of
China
(ICBC)
“soft
loan”
–
a
classic
example
of
state
subsidized
Chinese
deals.
This
deal
included
the
construction
by
ZTE
of
two
CDMA
WLL
networks,
which
cover
43
provinces
in
all
eight
districts
of
Algeria.
In
October
2004
ZTE
announced
that
it
was
to
open
a
manufacturing
facility
in
the
country
(for
wireless
fixed
terminals
and
other
equipment)
in
cooperation
with
local
company
INATEL.
By
2005,
the
company
had
provided
a
national
CDMA
network
covering
95
percent
of
the
country
(including
the
three
provinces
of
Tizi
Ouzou,
Bouira
and
Bejaia
in
northern
Algeria).
The
new
network
involves
a
Mobile
Switching
System
(MSS),
Base
Station
System
(BSS),
Packet
Data
Serving
Node
(PDSN),
Operation
and
Maintenance
Center
(OMC),
a
repair
centre,
a
training
centre
and
a
software
support
centre.
In
2006
ZTE
was
awarded
a
contract
to
supply
optical
network
equipment
to
ATM
Mobilis,
the
largest
mobile
operator
in
Algeria
with
1,2
million
subscribers
at
the
time.
Under
the
contract,
ZTE
is
to
provide
its
optical
products
including
transmission
equipment,
power
supply,
optical
network
management
software
and
SDH/PDH
analyzers.
Egypt
With
a
population
of
over
60
million,
Egypt
is
the
third
largest
mobile
market
in
Africa
after
South
Africa
and
Morocco.
The
Egyptian
mobile
market
is
dominated
by
two
private
operators,
MobiNil
and
Vodafone
Egypt.
MobiNil
and
Vodafone
were
for
years
the
only
providers
for
mobile
telecommunications
before
the
Emirates-based
Etisalat
was
chosen
as
the
third
provider
offering
third
generation
(3G)
services
in
2006.
In
2002
the
Ministry
of
Communications
and
Information
Technology
of
Egypt
and
the
Ministry
of
Information
Industry
(MII)
of
China
signed
a
memorandum
of
understanding
aiming
at
the
development
of
the
ICT
industry
in
both
countries.
Huawei
Huawei
entered
Egypt
in
2000
and
its
Middle
East
and
North
African
operations
are
headquartered
in
Egypt.
Huawei
also
has
a
training
centre
in
the
country.
Telecom
Egypt
used
Huawei's
TELLIN
solution
to
build
a
Fixed-line
Intelligent
Network
(FIN)
that
covers
the
whole
country.
Huawei
enabled
Telecom
Egypt
to
provide
CDMA
WLL
services
to
both
fixed
and
mobile
subscribers,
including
voice
and
data
services,
with
a
network
capacity
of
100
000.
In
addition,
Telecom
Egypt
built
a
MSAN
(Multi
Service
Access
Network)
nationwide
comprising
500
000
lines
which
made
use
of
Huawei's
Honet
access
network
solution.
Telecom
Egypt
also
deployed
Huawei's
OptiX
10G
equipment
to
build
the
core
Cairo
Metropolitan
network,
which
has
more
than
50
nodes.
In
2006
Telecom
Egypt
and
Huawei
signed
an
agreement
to
manufacture
CDMA
wireless
local
loop
terminals.
Huawei
used
Raya
NS
(RNS)
to
undertake
the
turn-key
installation
of
Huawei
CDMA2000
WLL
switches
and
base
stations
in
Upper
Egypt
and
Suez
Canal
regions
to
expand
Telecom
Egypt
telephony
services
to
remote
areas.
Egypt’s
IN
Hardware
Installation
Network
supplied
by
Huawei
Technologies
covering
8
sites:
Roda,
Abbassia,
Alexandria,
Suez,
Tanta,
Mansura,
Sohag
and
Menia,
were
also
implemented
by
RNS.
RNS
further
completed
the
installation
of
4
fibre
optics
rings
covering
17
sites
along
with
its
network
management
system.
RNS
was
awarded
the
installation
by
Huawei
which
received
the
contract
to
perform
the
first
trial
for
10G
and
155/622M
fiber
optics
transmission
equipment.
In
2005
the
Egyptian
Company
for
Mobile
Services
(Mobinil),
Egypt's
leading
mobile
service
operator
and
Huawei
started
to
work
on
Softswitch
trials
in
Egypt
and
finished
the
first
call
on
this
trial
mobile
network
during
this
period.
Mobinil
signed
a
commercial
contract
with
Huawei
in
2006
to
expand
the
network
capacity
to
5
million
prospective
customers.
[Note:
Mobinil
which
was
the
first
equipment
supplier
to
introduce
Softswitch
technology
into
2G/3G
mobile
core
network
commercial
construction,
selected
Huawei
for
the
provision
of
its
core
network.
Mobinil’s
shareholders
are
Orange
and
Orascom
Telecom
Holding.]
In
2006,
Telecom
Egypt
selected
Huawei
to
provide
Dense
Wavelength
Division
Multiplexing
(DWDM)
technology.
This
technology
enables
multiple
video,
audio,
and
data
channels
to
be
transmitted
over
one
fibre
and
increases
the
efficiency
and
bandwidth
of
networks
by
supporting
different
formats.
The
three
year
contract
will
increase
the
capacity
of
Telecom
Egypt’s
Cairo
network
and
reduce
operating
costs
while
increasing
quality
of
service.
According to Dawlat El Badawi, the planning vice chairman of Telecom Egypt:
Emerging
demand
for
advanced,
higher-quality
communications
poses
a
paradigmshifting
challenge
to
telephone
operators.
Originally
designed
to
carry
circuitswitched
voice
traffic,
existing
networks
now
need
to
carry
heavy
data
loads,
deliver
streaming
video,
and
provide
Internet
access
to
a
rapidly
growing
user
base.
The
decision
to
evolve
our
network
is
significant
and
is
the
result
of
in-depth
research
and
analysis.
Huawei
offers
industry
leading
transmission
network
architecture
with
its
DWDM
technology
and
enable
us
to
give
our
customers
access
to
new,
advanced
services
while
enhancing
the
security
and
quality
of
existing
services.
The
Huawei
DWDM
equipment
has
been
applied
to
over
250
national
and
inter-city
transmission
networks.
In
the
Middle
East,
Huawei
DWDM
Technologies
have
been
widely
adopted
in
many
countries
like
the
UAE,
Saudi
Arabia
Oman,
Tunisia,
Algeria,
and
Morocco.
In
2005,
Huawei
Technologies
inaugurated
a
regional
technical
assistance
centre
and
a
training
centre
in
Cairo,
aimed
at
educating
partners,
customers
and
sub-contractors
of
the
company’s
extensive
portfolio
of
telecoms
equipment.
The
training
facility
covers
an
area
of
300
square
metres
and
comprise13
classrooms
and
labs,
with
a
capacity
of
150
trainees
at
any
given
time.
On
its
opening,
a
total
of
58
training
programmes
were
available.
At
the
time,
Tian
Feng,
vice
president
of
Huawei
Technologies
boasted
that
“our
entry
into
Egypt
four
years
ago
and
our
knowledge
and
experience
is
equal
to
the
best
in
the
world”
and
added
that
“the
strategic
location
of
Egypt
is
important
to
us”.
The
total
size
of
the
investment
in
the
two
centres
amounts
to
US$20
million.
ZTE
On
6
May
2004,
ZTE
and
Huawei
won
a
contract
to
launch
a
mobile
phone
network
using
CDMA
technology
in
Egypt
after
fighting
off
fierce
competition
from
other
global
giants.
The
contract,
signed
between
the
two
Chinese
companies
and
the
Egyptian
Communications
Company
(ECC),
aimed
to
launch
the
CDMA
mobile
phone
network
to
serve
up
to
100
000
users
at
a
cost
of
more
than
US$20
million.
The
ECC
picked
the
two
Chinese
firms
after
inviting
an
international
tender
that
attracted
seven
global
telecommunication
companies.
According
to
ECC’s
Chairman
Okail
Bashir,
the
selection
was
not
based
on
low
prices
only,
though
prices
are
one
of
the
important
criteria,
but
technical
efficiency
which
was
the
essential
element.
The
first
phase
of
the
project
entailed
48
000
lines
in
the
Delta
and
52
000
lines
in
Cairo’s
16
suburbs.
Phase
II
includes
the
establishment
of
an
800M
core
network
along
with
an
access
network
and
fixed
wireless
terminals.
In
2005
ZTE
signed
a
further
contract
to
expand
the
CDMA
WLL
network
to
100
CDMA
WLL.
Angola
Angola
has
become
one
of
China’s
most
important
telecoms
market
in
recent
years.
The
largest
player
in
the
country
is
ZTE.
In
2005
ZTE
deployed
its
first
ever
Africa
commercial
WiMAX
network
in
Angola
following
an
agreement
of
US$69
million
signed
with
Mundostartel
(MST),
Angola's
second
largest
fixed-line
operator.
ZTE
provided
Mundostartel
with
the
equipment
to
build
a
nationwide
WiMAX
network.
The
network
covers
three
cities
(Luanda,
Benguela
and
Lobito)
and
provides
broadband
and
VoIP
services
for
more
than
six
million
people.
It
will
eventually
be
deployed
in
8
provinces.
It
was
also
the
first
time
that
ZTE
installed
an
NGN
based
on
an
IP
platform
with
CDMA2000
1x
and
EV-DO
technology.
Under
the
terms
of
the
agreement,
ZTE
supplied
MST
with
its
end-to-end
WiMAX
solution
including
base
stations
and
CPEs
(Customer
Premises
Equipment)
which
offer
scalability
to
an
802.16e
(mobile
WiMAX)
network,
roaming
support
architecture
and
product
serialisation.
ZTE
said
the
network
would
provide
NGN
technology,
which
allows
analog
services
like
traditional
fixed-line
voice
calls
to
be
carried
on
the
same
network
as
digital
signals
such
as
mobile
telecom
traffic.
It
would
be
among
the
first
of
its
kind
in
Africa.
[Note:
Mundo
Startel
has
the
license
to
roll
out
fixed-line
telecommunications
network
in
Angola
and
intends
to
increase
its
market
share
up
to
40
percent
by
2010.
Telecom
Namibia
owns
44
percent
of
MST
and
contributed
US
4,2
million
of
the
original
US$9,7
million
in
equity
costing
of
the
wireless
network.]
In
November
2006,
Angola’s
Prime
Minister
Peido
Nandó
visited
the
Shenzhen
ZTE
HQ
where
he
was
presented
with
the
firm’s
new
generation
proposals
for
Angola.
ZTE
has
100
people
working
full
time
in
Angola
and
is
now
eyeing
the
Sao
Tomese
market.
With
projects
in
Angola
currently
worth
US$400
million
ZTE
has
been
working
on
a
NGN
access
network,
Intelligent
Optical
Terminal
(IOT)
and
GSM/CDMA
networks,
with
Angola
Telecom
(the
largest
telecommunications
company
in
the
country)
and
MSTelem
as
its
local
partners.
It
has
also
been
working
on
a
classified
secure
telecoms
network
for
Angola’s
Armed
Forces
(FAA),
valued
at
around
US$80
million,
because
the
military’s
top
brass
are
dissatisfied
with
the
state
of
secure
communication
connections
to
command
centers.
Alcatel Shanghai Bell (ASB)
In
2002
Alcatel
Shanghai
Bell
(ASB)
and
Angolan
Telecom
signed
a
US$60
million
contract
to
expand
and
optimize
the
telecommunication
network
in
south
and
east
Angola
(Namibe,
Huile,
Cunene
and
Lunda
Norte).
The
deal
covered
design,
project,
products
and
equipment
solutions.
Shanghai
Bell
provided
Alcatel
S12
switching
equipment,
Litespan
integrated
access
equipment,
SDH622M
and
SDH155M
optical
transmission
equipment
and
optical
and
electric
cable.
It
was
also
commissioned
to
set
up
a
satellite
earth
station
and
reconstruct
4
satellite
earth
stations
and
all
the
exterior
lines
for
Angolan
Telecom.
[Note:
The
construction
and
installation
started
in
2005.
Japan
Telecommunications
Engineering
and
Consulting
Service
(JTEC)
managed
and
supervised
the
installation.]
China International Telecommunication Construction Corporation (CITCC)
In 2005 CITCC completed four phase projects for the improvement of Angola Telecom’s telephone network in Luanda. CITCC also built 42 km of new telecom ducts, laid 366 km of telephone cables, and supplied telephone lines for 200 000 people.
Huawei
Huawei
is
present
in
6
Angolan
provinces,
where
it
has
invested
US$7
million
to
build
a
training
centre
of
telecommunications
technologies
and
upgrade
the
ITEL
(School
of
Telecommunications
Technologies)
at
the
University
of
Telecommunications.
The
university
is
currently
under
construction
in
Luanda.
Huawei
has
also
introduced
NGN,
access
network,
intelligent
optical
transmission,
GSM,
CDMA
and
datacom
products
to
Angola.
It
has
signed
cooperation
framework
agreements
with
Angola
Telecom
and
MSTelcom.
South Africa
Another
critical
area
for
Chinese
telecom
development
in
Africa,
South
Africa
serves
as
the
head-quarters
and
logistics
centre
for
both
ZTE
and
Huawei
on
the
continent.
The
Huawei
Sub-Saharan
command
centre
in
Johannesburg
is
particularly
impressive,
located
on
the
1st
floor,
Building
28,
The
Woodlands,
Woodmead
in
Johannesburg.
Huawei
also
has
a
Technical
Training
Centre
in
South
Africa,
co-manned
by
Telkom.
Chinese
firms
are
busy
in
trying
to
bring
in
South
African
technology
to
Beijing
and
Shanghai,
and
to
establish
joint
ventures
with
big
operators
like
MTN,
in
third
countries
where
they
have
lower
prospects
of
competing.
Huawei
Huawei
first
entered
the
South
African
market
in
1998
in
Pretoria,
and
relocated
to
Johannesburg
in
1999.
A
training
initiative
with
the
University
of
Cape
Town
(UCT)
is
currently
underway,
and
it
will
seek
to
supply
basic
and
advanced
product
training
to
telecoms
engineers.
Huawei
has
supplied
the
university
with
the
necessary
equipment
needed
to
operate
a
fully
functional
Huawei
training
facility.
Huawei
is
Telkom's
only
strategic
partner
for
its
21CN
integrated
access
network,
providing
an
access
platform
integrating
voice,
IP
and
video.
Furthermore,
Huawei
provides
Vodacom
with
advanced
3G
terminals
and
CellC
with
high-end
IP
networks
and
value
added
services.
Huawei
also
became
a
strategic
global
partner
of
MTN
in
2005,
having
signed
a
3-year
framework
agreement
worth
US$600
million,
featuring
communications
equipment
provision
and
service.
Huawei
is
also
listed
as
the
first
partner
to
be
chosen
by
the
fixed
network
operator
SNO.
The
Government
of
the
Northwest
Province
has
also
purchased
and
implemented
an
IP
WAN
from
Huawei.
Huawei
has
focused
much
attention
on
training
programmes.
For
example,
the
company
cooperated
with
Telkom
to
support
South
Africa's
"Talent
Plan"
by
funding
Zululand
University,
and
providing
postgraduate
students
with
education
funds
and
research
subjects.
Huawei
has
also
set
up
an
IP
network
training
and
certification
centre
in
UCT
to
provide
free
IP
engineering,
technical
training
and
certification
for
South
Africa
and
surrounding
countries.
Over
the
past
year,
the
centre
has
provided
successful
training
and
certification
for
more
than
100
people.
Furthermore,
on
6
August
2008
another
training
centre
was
opened
in
South
Africa
located
in
Woodmead.
This
facility
brought
the
number
of
Huawei
training
centres
in
Africa
to
five,
with
the
other
facilities
located
in
Nigeria,
Kenya,
Egypt
and
Tunisia.
At
the
end
of
2007,
over
4000
Africans
had
graduated
from
these
centres.
ZTE
ZTE entered the market through Vodafone Group plc, then a 50 percent share-holder in South Africa's Vodacom in May 2007. Vodafone unveiled ultra-cheap cell-phones, aimed at bolstering its position in emerging markets and at offering an alternative to Nokia and Motorola's cheapest handsets. The second-generation, or 2G, phones, called the Vodafone 125 and the Vodafone 225, are the fruit of Vodafone's recent partnership with ZTE. [Note: Vodafone is also working with Huawei on 3G handsets and with Sagem, the phone-manufacturing unit of France's Safran, on an ultra-cheap GSM handset.]
China Eyeing Mtn?
For a period in 2007/early 2008, rumours persisted that China Telecom, the country's largest fixed-line telecommunications operator by users, was planning to buy a stake in South African mobile operator MTN Group. According to European sources, the Chinese takeover of MTN had long been planned. First it was thought that an umbrella group of enterprises should do it at the end of 2005. Then the plan was for China Mobile to make a bid with heavy China Eximbank financial support.
9.6. Recent Developments
- September 2008: ZTE Corporation announces a US$70 million contract to expand the country’s telecoms network. China’s Huawei Technologies has won a US$20 million contract to build a fibre optic network in Tripoli. Libya is planning a nation-wide Internet and mobile phone service. Chinese companies are expected to be at the forefront of these developments.
- October 2008: It was reported from Nigeria that plans are afoot to use the infrastructure of NIGCOMSAT for commercial telecommunications, which will be run by the government and ZTE, with the intention of rolling out lines across the country with the name of NIGCOMSAT and competing with the private telecommunications operators (PTOs), as well as GSM operators. NIGCOMSAT is said to be building a telecommunications network that would provide voice and data services with a host of other value-added services. [Note: NIGCOMSAT was launched into space in China on May 17, 2007 and was conceived to take care of the integrated communication infrastructure of Nigeria’s security agencies, including the State Security Service (SSS), Nigeria Intelligence Agency (NIA), as well as the Office of the National Security Adviser (NSA)
- November 2008: China’s ZTE Corporation won a contract to build a 2,5GHz mobile WiMAX commercial network in Mauritania. In terms of the agreement, ZTE will provide a core network, equipment, wireless access units and communications terminals.
目次
- 1. Introduction
- 2. Africa in the Context of China's Resource Acquisition Requrements
- 3. The Origins of China's New Africa Policy
- 4. The Role of FOCAC
- 5. China's New Resource Acquistion Business Model
- 6. The Role of Chinese Institutions in the Acquisition of Business Intelligence
- 7. China's Energy Footprint in Africa
- 8. China's Mining Footprint in Africa
- 9. China's Telecommunications Footprint in Africa
- 10. China's Infrastructure Footprint in Africa
- 11. The Role of China's Financial Institutions
- 12. Implications for Japanese Investors
- Annexure I: The Focac Fuc Structure
- Appendix II: The Forum on China-Africa Cooperation
- Annexure III: Ministry of Commerce
- Annexure IV:Profile Chen Yuan and Chi Janxin