Alcatel Shanghai Bell (ASB) has clinched an agreement to lay over a million digital subscriber lines (DSLs) for China Telecom, the country's fixed line telcom operator.

With 40 per cent of the overall bid, ASB becomes the leading supplier and will lay 1.3 million DSLs in southern China.

The deal's worth was undisclosed.

According to the agreement, ASB will provide its industry-leading Alcatel 7300 Advanced Services Access Manager (ASAM) to China Telecom's subsidiaries in 15 provinces and municipalities across southern regions including Shanghai, Zhejiang, Fujian, Guangdong and Guangxi.

There has been strong demand in these areas for high-speed Internet access services and high quality broadband applications like IP TV.

China Telecom now has 21 provincial corporations in southern China.

The deployment is expected to be completed next month.

As a result, China Telecom will significantly enhance its network capacity to offer new multimedia applications such as video streaming, broadcast video, video on demand and on-line gaming to end users.

Chang Xiaobing, China Telecom Group's deputy general manager said: "China is seeing explosive growth in its broadband market. We need a strong partner to support us in meeting the increasing demand for quality broadband services."

China Telecom's broadband business entered a new era as users of the fast line aggregated to 6 million when it officially kicked off its broadband brand, "Hulianxingkong" in September last year.

Company figures show subscribers reached 7.35 million by the end of last year.

And by the end of May, the figures stood at 10 million.

Currently, China Telecom operates domestic and international fixed-line networks, providing voice, data, video, multimedia and information services. It is also engaged in international telecom accounts settlement and overseas market exploration.

"The extensive co-operations with partners of broadband contents and applications have greatly enhanced our development," Chang said.

"The co-operation is a win-win deal to nurture an industrial chain for the development of the broadband industry in China," he added.

"We provide our customers with high-performance broadband solutions and tailored business consultancy services, enabling them to expand their market opportunities and grow their business," said Gerard Dega, ASB's president.

ASB has been a partner of China Telecom since 1997.

With local expertise and global experience in broadband, Dega believed ASB will continue to work hand-in-hand to drive broadband development.

According to CNNIC (China Internet Network Information Centre), China is the fastest growing broadband market in the world with 17 million users by the end of June this year.

More than 80 per cent of broadband subscribers in China now use DSL.

Dell'Oro Group, a Telecom industry analyst firm, reported that Alcatel is currently the world leader in DSL shipments with a cumulative market share of 37.7 per cent, and is a leading supplier in the Asia Pacific market.

ASB has an end-to-end broadband portfolio covering network infrastructure, video middleware, consultancy and services.

(China Daily August 20, 2004)