Alcatel-Lucent today announced its SDN and NFV deals worth $1.3 billion with China Mobile and China Unicom.
The deal is for transition to dynamic cloud-based networks — for delivering faster and affordable mobile and fixed Internet connections.
The size of the one-year deal NFV and SDN deal with China Mobile is RMB 4.53 billion or 656 million euros.
The value of the one-year deal NFV and SDN contract with China Unicom is RMB 3.59 billion or 520 million euros.
Li Huidi, vice president of China Mobile, said: “We have been working with Alcatel-Lucent on the development of technologies to help the smooth transition to cloud networks.”
Alcatel-Lucent will deliver its mobile and fixed broadband access, IP routing, agile optical networking and network functions virtualization (NFV) capabilities, as well as Nuage Networks’ software defined networking (SDN) technologies.
Broadband China initiative aims to see full broadband coverage across the country’s rural and urban areas by 2020. Both China Mobile and China Unicom can play a significant role in achieving the broadband coverage targets.
China’s Ministry of Industry and Information Technology wants to offer 100 Mbps fiber by 2017 in municipalities, city districts and most non-urban households across China.
China also expects residents of major cities to have an average access rate of 30 Mbps, 80 percent of administrative villages to have fiber coverage, with full 4G mobile access in urban and rural areas by 2017.
Alcatel-Lucent will provide technologies including 4G TD-LTE and LTE FDD mobile broadband access, Gigabit Passive Optical Networks (GPON) and Ethernet Passive Optical Networks (EPON) fixed ultra-broadband access, Optical transport network and private telecommunications network (PTN) data transmission, IP routing and switching technologies, Voice over LTE (VoLTE), NFV cloud technologies and Nuage Networks SDN.