A 26 per cent fall in telecoms equipment purchases in the first three quarters of 2002 has adversely impacted major suppliers, said Bloomberg. ZTE, the largest equipment supplier in China, reported a third-quarter profit of Yn37m, down from the Yn134m it made in the first half of the year. Even worse hit were , Datang Telecom, which made a Yn12m third-quarter loss, and Eastern Communications, which announced a quarterly loss of Yn64m.
However, there was better news for the unlisted Huawei Technolgies in November when it announced that it would supply wireless local area network equipment to China Mobile. Huawei said the equipment would form the basis of the world's first commercially operated mobile WLAN system, with a capacity of 350,000 users. The system is designed to integrate easily with GPRS and CDMA2000 technology and to share authentication and security protection with existing mobile networks.