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Limit on how long China delays 3G-Lucent

Wed Mar 1, 2006 8:04pm EST

Reporter's Notebook

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NEW YORK (Reuters) - Waiting for China to issue licenses for companies to develop third-generation wireless networks has been challenging for Lucent Technologies Inc. LU.N, and deploying those networks could take months, the company's chief executive said on Wednesday.

"As you know it's been a challenge in the last year because of the pause with respect to investment and the anticipation of those 3G licenses," Patricia Russo said at the Reuters Global Technology, Media and Telecoms Summit in New York.

Lucent is trying to grow its business in so-called third-generation, or 3G, wireless networks in China.

"I remember ... talking about whether there would be decisions in 2005 and then, you know, it keeps moving out and moving out and moving out, and now it's sometime perhaps in '06 and now it's sometime later in '06," Russo said.

The company is competing with other equipment vendors, such as Ericsson (ERICb.ST: Quote, Profile, Research, Stock Buzz), Motorola (MOT.N: Quote, Profile, Research, Stock Buzz), Nokia (NOK1V.HE: Quote, Profile, Research, Stock Buzz) and Siemens (SIEGn.DE: Quote, Profile, Research, Stock Buzz), over the licenses.

Participants at a wireless trade fair in Barcelona last month were speculating whether China would issue the licenses this year, especially in advance of the 2008 Beijing Olympics.

Getting the networks up will take more time, Russo said.

"I think you're months out from that time period before you'd actually see the deployment occurring because everybody's got to know, 'What license am I going after?'" she said.

Lucent is pursuing 3G wireless and Internet-based networks for delivering voice, video and data globally.  Continued...

 
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