China annual telecom network-equipment procurement to top US$12 billion in next three years, says Nortel executive
With the launch of integration processes by the major five telecom operators in China, the annual procurement of telecom network-equipment by China telecom operators is expected to increase to US$12-12.5 billion on average in the next three years compared to the current average of US$10 billion, according to Jackson Wu, president of Nortel Greater China.
Eyeing the expanding market in China, Nortel Networks has recently reorganized its corporate structure for Asia, separating the market into two regions: the Greater China area and the Asia Pacific area, with the heads of the two regions reporting directly to global headquarters, instead of Asia headquarters as was the case previously, noted Wu, who will continue to oversee Nortel's operations in the Great China area after the reorganization.
Since Nortel has established long-term business relations with a number of Taiwan network-equipment makers including Foxconn Electronics (Hon Hai Precision Industry), Accton Technology, Alpha Networks, Tecom and Delta Networks, Nortel may also increase its purchasing of network-equipment from Taiwan suppliers for expansion in the China market, Wu noted.
Nortel purchased about US$250 million worth of network-equipment from Taiwan makers in 2007 with the amount likely to expand by 20% to US$300 million in 2008, according to estimates by sources at Taiwan network-equipment makers.
Jackson Wu, president of Nortel Great China
Photo: Irene Chen, Digitimes, July 2008
Eyeing the expanding market in China, Nortel Networks has recently reorganized its corporate structure for Asia, separating the market into two regions: the Greater China area and the Asia Pacific area, with the heads of the two regions reporting directly to global headquarters, instead of Asia headquarters as was the case previously, noted Wu, who will continue to oversee Nortel's operations in the Great China area after the reorganization.
Since Nortel has established long-term business relations with a number of Taiwan network-equipment makers including Foxconn Electronics (Hon Hai Precision Industry), Accton Technology, Alpha Networks, Tecom and Delta Networks, Nortel may also increase its purchasing of network-equipment from Taiwan suppliers for expansion in the China market, Wu noted.
Nortel purchased about US$250 million worth of network-equipment from Taiwan makers in 2007 with the amount likely to expand by 20% to US$300 million in 2008, according to estimates by sources at Taiwan network-equipment makers.
Jackson Wu, president of Nortel Great China
Photo: Irene Chen, Digitimes, July 2008
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