Mobile operator Cell C has awarded a US$378m (R2,9bn) contract to telecommunications equipment company ZTE Corporation, the Chinese company said on Wednesday.

The company — together with its subsidiary ZTE Corporation SA — had entered into a network supply agreement and a managed services agreement with Cell C and its controlling shareholder, Oger Telecom SA.

Following the agreements, ZTE would supply equipment and services to Cell C worth US378 million, the Chinese company said in a statement.

Cell C announced late last year that it was building a 3G network based on enhanced high-packet access technology.

TechCentral reported in December that Cell C, SA’s smallest mobile operator, plans to spend as much as R5bn in 2010 on new network infrastructure. Much of this money is expected to be used to construct a 3G network capable of delivering broadband at speeds of up to 21Mbit/s.

Cell C CEO Lars Reichelt, pictured, said at the time that funding for the network expansion had been raised by the company’s shareholders.  — Sapa-AP and TechCentral reporters

TechCentral’s ongoing coverage of this story:

• Behind Cell C’s big broadband bet
• Reichelt’s broadband plan could help Cell C leapfrog rivals
• Cell C eyes growth opportunities, says SA market far from mature

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