SHENZHEN, China, Jan. 10 /Xinhua-PRNewswire-FirstCall/ -- China GrenTech Corporation Limited (NASDAQ: GRRF, "the Company" or "GrenTech"), a leading China-based wireless coverage solutions provider, announced that it has won 2007's final wireless coverage integrated service project bid from Shandong Mobile, China Mobile's provincial subsidiary. This is GrenTech's 17th project win from China Mobile at the provincial level in 2007. With this win, GrenTech has successfully extended its wireless coverage business obtained from China Mobile to five additional provincial markets in 2007 compared to that of 2006, contributing to further growth in revenues from China Mobile.
China Mobile changed its tender model in 2007 to require its provincial subsidiaries to separate the bidding process for product procurement from integrated service. The centralized bidding system for product procurement calls for integrated services to be managed at the provincial level, allowing each province to choose suppliers according to their specific needs. Despite lowering product prices due to the new centralized procurement process, the integrated service fees tend to be higher under the new tender model, as compared to the original bundling model of product procurement and integrated services. Under the new model, the proportion of integrated service fees to the total construction cost varies from 10-15% to 30-50% in different situations for each province. Being a key qualified wireless coverage solution integrated services provider for China Mobile has not only expanded GrenTech's share of business from China Mobile, it will also further improve the Company's profit margin in the wireless coverage business, as the proportion of integrated service fees increases.
About China GrenTech
GrenTech is a leading radio frequency ("RF") technology and product developer and a leading provider of wireless coverage products and services to telecommunication operators in China. The Company uses RF technology to design and manufacture wireless coverage products, which enable telecommunication operators to expand the reach of their wireless communication networks to indoor and outdoor areas, such as buildings, highways, railways, tunnels and remote regions.
Based on its in-house RF technology platform, the Company also develops and produces base station RF parts and components sold to base station equipment manufacturers. GrenTech is a qualified supplier of RF parts and components to six major base station equipment manufacturers such as Huawei Technologies, ZTE etc. For more information, please visit GrenTech's website at http://www.grentech.com.cn/.
For more information, please contact:
Investor Relations (HK):
Ruby Yim
Taylor Rafferty
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