Wind, 3 Italia JV set to choose ZTE for network upgrade worth 1 billion euros

MILAN (Reuters) - The joint venture between telecoms groups Wind and 3 Italia is set to choose Chinese telecoms equipment group ZTE for network upgrades worth around 1 billion euros ($1.05 billion), two sources close to the matter said.

The sources added that no deal had yet been signed. One of the people said ZTE had already been notified that it was the winning bidder.

3 Italia, part of CK Hutchison Holdings, is finalising its merger with Vimpelcom’s Wind, and the combined entity plans to upgrade its network with 4G technology.

ZTE’s Italian unit could not immediately be reached for comment. A spokesman for 3 Italia and Wind declined to comment.

($1 = 0.9559 euros)

Reporting by Stefano Rebaudo, writing by Agnieszka Flak