Alcatel formal launch in China - Of Interest - Brief Article

Electronic News, June 3, 2002 by Heidi Elliott

ALCATEL LAST WEEK KICKED OFF THE OFFICIAL LAUNCH OF Alcatel Shanghai Bell, the first foreign-invested company limited by shares in China's telecommunications sector, completing the integration of Alcatel's key operations in China with Shanghai Bell. Alcatel holds 50 percent-plus-one share in the company, with Chinese entities holding the remaining shares.

The integration is the result of a memorandum of understanding signed in October between China's Ministry of Information Industry and Alcatel. Alcatel Shanghai Bell expects to achieve $2 billion sales in its first year of operation, plus $1 billion of exports within the first three years. The company has integrated the key operations of Alcatel in China, Shanghai Bell and Shanghai Bell Alcatel Mobile Communication. Alcatel Shanghai Bell has a large sales force of more than 1,500 people, in almost all provinces of China. It already holds leading positions in China, with one-third of the fixed and mobile voice-switching market and close to half of the ADSL mar ket.