Compaq and Datang Sign Major Agreement to Expand CDMA Wireless Opportunities In China
Tuesday December 5, 10:00 pm Eastern Time
Press Release
SOURCE: Compaq Computer Corporation
Compaq and Datang Sign Major
Agreement to Expand CDMA Wireless Opportunities In China
Datang to Develop Improved Switch Products Based on Compaq Intelligent
Network Technologies
HONG KONG, Dec. 5 /PRNewswire/ -- ITU Telecom Asia 2000 -- Strengthening its presence in the
global communications market, Compaq Computer Corporation (NYSE: CPQ - news) signed an
agreement with Xi'an Datang Telephone Corporation to jointly expand CDMA (Code Division Multiple
Access) wireless opportunities in the rapidly growing China market.
As a major manufacturer of telecommunications switching equipment for network operators in China,
Datang will build enhanced switching products based on Intelligent Network (IN) technologies from
Compaq. Initially, Datang will focus its efforts on integrating the Compaq Home Location Register (HLR)
with its own wireless infrastructure, and enhancing it for deployment in the Chinese market. Going
forward, Datang will adopt Compaq's IN platform and services, and evolve these elements for the
Chinese market.
In any wireless network, the HLR solution performs the necessary task of delivering all personal
telephone services to a wireless customer, no matter where he or she ``roams'' in the service area.
Compaq's base HLR technology supports roaming services for more than 70 million wireless
subscribers worldwide. It is based on Compaq's NonStop(TM) Himalaya(TM) server, widely regarded as
the world's most reliable, scalable commercial computer.
Compaq and Datang have complementary capabilities, and by acting together, they will be able to
exploit wireless opportunities in China more swiftly and more comprehensively.
Dr Philip Yu, President of Compaq's Greater China Division, said, ``Compaq believes strongly in the
value of partnerships. In today's complex markets, no one company can do it all alone. Our agreement
today with Datang is a good example. By combining Datang's strength in switching technology with
Compaq's strengths in networks and wireless Internet, our two companies together can generate much
success in the China wireless market that would not be possible if we acted separately. We look
forward to a productive and prosperous relationship with Datang.''
Carriers and service providers in China are rapidly developing wireless network infrastructure in
anticipation of enormous consumer demand. One of the network operators, China Unicom, is planning
to expand its CDMA network in China to accommodate rapid subscriber growth. Its CDMA wireless
network will need a highly scalable and highly available off-switch HLR, accompanied by the associated
IN solutions.
Qichun Fu, General Manager of Xi'an Datang Telephone Corporation said, ``Datang is wholeheartedly
committed to the advancement of CDMA and related next-generation network technologies in China,
and this important agreement with Compaq underlines our commitment. Compaq's proven IN
technologies and its extensive understanding of network infrastructure complement Datang's own
offerings, and will enable us to provide our customers in China with very competitive, high value
solutions.''
Mitesh Desai, Vice President, Marketing and Business Development, Compaq Telecom, said, ``Network
operators in China face the challenge of implementing large-scale cellular networks quickly - and then
being able to scale them up smoothly as subscriber growth escalates. Compaq Telecom can help here,
as it has in other parts of the world. First, with 25 years of experience, we understand network
infrastructure. Second, our HLR technology is the most scalable on the market. Its parallel architecture
ensures seamless, cost- effective expansion. Third, our HLR technology enjoys broad support from
vendors that enables operators to implement the solution quickly -- and accelerate time-to-market.''
Compaq Telecom is a line of business within Compaq that provides convergent solutions that help global
service and equipment providers get to market quickly with the high value services a customer-driven
market demands. With the combined heritage of Compaq, Tandem and Digital, Compaq Telecom is a
carrier-grade partner with expertise that spans the full spectrum of customer needs: in platforms, an
end-to-end product line that runs from handheld Internet-access devices to mission-critical servers that
manage large-scale network infrastructure; in services, a respected global organization that provides
customers with a single point of contact anywhere in the world; and in solutions, from wireless and wire
line solutions to business intelligence, network management and real-time CRM. Compaq Telecom
works with more than 200 communications companies, including the largest 40 in the world.
About Compaq
Compaq Computer Corporation, a Fortune Global 100 company, is the largest supplier of computing
systems in the world. Compaq designs, develops, manufactures and markets hardware, software,
solutions, and services, including industry-leading enterprise computing solutions, fault-tolerant
business-critical solutions, and communications products, commercial desktop and portable products,
and consumer PCs.
Compaq products and services are sold in more than 200 countries directly to businesses, through a
network of authorized Compaq marketing partners, and directly to businesses and consumers through
Compaq's e-commerce Web site at compaq.com. Compaq markets its products and
services primarily to customers from the business, home, government, and education sectors.
Customer support and information about Compaq and its products and services are available at
compaq.com.
Compaq Computer Limited was established in Hong Kong in 1989. Its products and services are sold
and supported through a network of marketing partners. More information on Compaq in Hong Kong is
available from its Web site at compaq.com.hk.
About Xi'an Datang Telephone
Xi'an Datang Telephone Corp. is a subsidiary company of Datang Telecom Technology Co., Ltd. Located
in Xi'an Hi-tech Industry Development Zone, Xi'an Datang Telephone mainly focuses on R&D, production,
sales, and service of telecom and information products. The company is operated on the modern
enterprise mechanism basis and has passed authentication of ISO9001quality system. Datang Telecom
Technology Co., Ltd. was jointly established by the China Academy of Telecommunication Technology,
the Tenth Research Institute of Ministry of Information Industry, International Telephone & Teledata
Incorporation, Xi'an Hi-tech Group, Shaanxi International Trust and Investment Co., and several other
companies. The stock of Datang Telecom Technology has been successfully issued and listed in the
Shanghai Stock Exchange. The stock code is 600198.
Xi'an Datang Telephone Corp. was established in April 1993. Since its establishment, the company has
been developing at a high speed. SP30 Super Digital SPC Switch was introduced into the market in
June 1995.
Compaq, NonStop, Himalaya and the Compaq logo Registered US Patent and Trademark Office.
Product names mentioned herein may be trademarks and/or registered trademarks of their respective
companies. This press release may contain forward-looking statements based on current expectations
that involve a number of risks and uncertainties. The potential risks and uncertainties that could cause
actual results to differ materially include: component shortages, delays in the implementation of
changes in delivery models, increased competitive environment and pricing pressures, delays in product
rollout schedules, slow acceptance for new form factors, employee retention, disruptions related to
restructuring actions, the financial condition of resellers, delays in new systems implementation,
operational inefficiencies related to sales cycles, equity investment volatility, and emerging market
political or economic instability. Further information on the factors that could affect Compaq's financial
results is included in Compaq's Securities and Exchange Commission (SEC) filings, including the latest
Annual Report on form 10-K and the report on Form 10Q.
SOURCE: Compaq Computer Corporation
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