ZTE, one of China's largest phone and network suppliers, has received a contract from a subsidiary of Norwegian operator Telenor Group to build a network in Hungary, the company announced on Monday.
ZTE will build Hungary's first next-generation LTE (Long-Term Evolution) mobile network, along with second- and third-generation networks, the company said in a statement. ZTE will also establish more than 6,000 base stations throughout the country and provide infrastructure support for the network over the next five years.
The deal is worth US$254 million, Telenor said in an e-mail statement.
"We chose the company that handed in the most favourable offer both in business and technology terms," Telenor said. "The decision is a result of our 6-months long network tender and was made after through evaluation and tough competition."
The deal is a "strategic win" for ZTE as it tries to win more overseas business, said David Wolf, CEO of Wolf Group Asia, a Beijing-based technology consultancy. "If they are successful with Telenor, this could be good for ZTE globally," he said.
But as for Telenor, the deal is a risk since ZTE is not a company European operators would normally use, Wolf added. "Traditionally Telenor has built relationships with equipment suppliers from more developed countries," he said.