French telecom equipment company Alcatel told investors Monday that it closed two equipment deals worth a total of $70 million with Shanghai Mobile and Jilin Mobile, two subsidiaries of China Mobile, a major wireless service provider in China. Alcatel will provide wireless base-station equipment from its Evolium product line for China Mobile's GSM network.
Shanghai Mobile is in the eighth expansion of its GSM network; Jilin Mobile is in the middle of its sixth. Alcatel has also played a role in past expansions, including an $80 million deal the company signed last April with Shanghai Mobile for base-station equipment. But China Mobile is not alone. Nortel Networks announced in June a series of deals worth $270 million to expand rival China Unicom's wireless networks.