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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: GVTucker who wrote (14177)	3/27/2000 8:29:00 AM
From: Neil H	Read Replies (1) \| Respond to of 21876

Monday March 27, 4:37 am Eastern Time CITIC Pac buys US$80 mln Lucent equipment HONG KONG, March 27 (Reuters) - CITIC Pacific Ltd said on Monday it had signed a contract to buy more than US$80 million worth of optical equipment from Lucent Technologies (NYSE:LU - news) for its backbone telecommunications network in China. ``The signing of this contract marks another milestone in our long term strategy to position outselves at the forefront of the future communications market in China,' CITIC Pacific chairman Larry Yung told a news conference after the signing ceremony. The equipment from Lucent would enable the network, called China Express No.1 Backbone Network, to operate on a 400 gigabit DWDM (Dense Wave Division Multiplexing) system. ``By working with Lucent, CITIC Pacific is building the widest and fastest highway available today,' said Harry Bosco, group president of Lucent Technologies' optical network group. Yung said about 20,000 km of its 32,000 km-long nationwide network had been built and the network was expected to be operational in the third quarter of 2000. ``(Profit) Contributions from the network are expected to start next year,' he said. The network will cover more then 200 cities in China, with Beijing, Shanghai, Guangzhou and Wuhan as its centre ring. ``Our strategiy is to focus on developing a state-of-the-art modern telecommunications backbone network in China, and then to utilize it in a wide range of applications including the transmission of data voice and graphics and other value-added services,' Yung said. CITIC Pacific took a 60 percent stake in a joint venture earlier this year to purchase the fixed optical fibre network for 2.0 billion yuan. Yung said the purchase of US$80 million of Lucent equipment would be divided between the joint venture partners on top of the 2.0 billion yuan investment. ``CITIC Pacific has HK$16 billion cash on hand and it will have no difficulties in funding,' he said. CITIC Pacific's parent, China International Trust and Investment Corp, and Larry Yung each have 20 percent stakes in the joint venture.