Shenzhen Huawei Technologies Co. has recently signed a contract with Iraqi telecom company Iraqtel (Telephone Al Iraq) to build CDMA2000 networks in Iraq, reports China Business News on January 17, 2007. The networks are expected to start commercial operation in early 2007. The value of the contract was not revealed.

China's largest communications equipment developer and manufacturer, Huawei has won the deal to build a third-generation telecom network in southern Iraq. The value was not revealed for the agreement, which was reached with local telecom operator, Telephone Al Iraq Co. The network, to be the largest Code Division Multiple Access network in the region, is based on CDMA 2000 ax/EV-DO technology. It will start commercial operation in the first quarter of this year, according to an insider familiar with the deal.

The Iraqi deal is a step further to carry out Huawei's overseas expansion strategy. By June 2006, the firm had snapped 19 overseas contracts for CDMA 2000 ax/EV-DO networks in North America, Europe, Africa and Asia. It has occupied over half of the burgeoning markets in the Asia-Pacific area and South Africa. Huawei has increased its market share in Iraq to nearly one-third of the country's total, since its entry in 2004.

Starting in 2005, Huawei's overseas income, surging to a record 45.3 billion yuan (US$5.8 billion), has beaten its business on the domestic market and accounted for 58 percent of its total income. However, it still expects a loss in the 3G sector.

According to the December 2006 issue of its corporate journal "Huaweier," Huawei's 3G business has recorded a loss of over 4 billion yuan ($510 million).

 
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