Nortel to expand research and development in China

17 Sep 2003

Canada-based nework equipment maker Nortel Networks has revealed plans to invest USD200 million in its research and development (R&D) operations in China over the next three years. The company, which currently has R&D divisions in Beijing and Guangdong, said it plans to expand its campus in Beijing in a bid to strengthen its position in the country’s wireless market. This year China has already attracted investment from Paris-based Alcatel and NTT DoCoMo of Japan, which have pledged to spend USD145 million and USD5.3 million respectively in R&D. The country boasts the world’s largest wireless market in terms of subscribers – at the end of July it claimed a total of 240 million mobile subscribers – and has become a vital market for equipment suppliers which have suffered from the global telecoms depression in recent years. Nortel also announced that it had begun the third stage of an order for CDMA mobile phone networks from China Unicom. The contract, worth USD139 million, will provide capacity for around six million new users and is scheduled to be completed by the end of the year.