China's Comba sees rev jumping at least half after 3G
HONG KONG (Reuters) - Comba Telecom Systems Holdings Ltd (2342.HK), China's top maker of wireless coverage equipment, expects revenue to jump at least half after Beijing dishes out third-generation (3G) mobile licenses.
Comba, which vies with U.S. Powerwave (PWAV.O) and local rival China GrenTech Co Ltd (GRRF.O), aims to more than double its overseas revenue and make its overseas business profitable this year by targeting emerging markets, Chairman and President Fok Tung Ling said in an interview on Tuesday.
After years of waiting, Beijing unveiled in May a sweeping industry shake-up, folding its telecoms operators into three giant full-service players and issuing 3G licenses, in what is touted as the world's largest-ever industry reorganization.
"We are best-positioned to benefit from this industry revamp because the market is getting bigger as newly established operators will boost spending and we are capable of making wireless coverage equipment with all three 3G technologies," Fok said.
"With or without 3G, the difference of our total revenue is at least 50 percent," he added.
To meet robust demand from home and abroad, Comba plans to double its production capacity to more than 4.0 billion yuan ($577 million) a year when its third phase expansion project is completed by the end of June 2009, he added.
Customers of the company, which makes networking components that can boost signals in sites from subways to skyscrapers, includes the world's top wireless carrier China Mobile (0941.HK), Spain's Telefonia (TEF.MC) and India's Reliance Communications (RLCM.BO).
($1=6.932 Yuan)
(Reporting by Judy Hua; Editing by Anne Marie Roantree)
