Lucent Technologies is in negotiations with all three of ChinaÆs national telecom operators to help upgrade their networks for internet-related services, according to Gerald Butters, president of the US companyÆs optical networking division. He said Lucent has already formed a joint venture with the dominant China Telecom group and is discussing similar relationships with China Unicom and the recently-launched China NetCom.
Butters said Lucent has been working with Hong Kong-listed China Telecom (HK), the China Telecom unit that owns mobile-phone networks in six of ChinaÆs wealthiest provinces. The cooperation has been aimed at initially allowing mobile-phone subscribers in Guangdong province internet access using voice-activation technologies. The new service will start within nine to 12 months, he said.
By spring next year, the Chinese network will be the largest telecommunications network on the planet. It will not only be larger than the US network, but also more modern, he said. China will continue to add subscribers at a rate equivalent to one complete Canadian telecommunications network per year for the next 20 years. So from an opportunity perspective, this represents one of the largest growth areas for companies like Lucent.