ZTE Announces Deal to Build Network in Hungary

ZTE, one of China's largest phone and network suppliers, has received a contract from a subsidiary of Norwegian operator Telenor Group to build a network in Hungary, the company announced on Monday.

ZTE will build Hungary's first next generation LTE (Long-Term Evolution) mobile network, along with second and third generation networks, the company said in a statement. ZTE will also establish more than 6,000 base stations throughout the country and also provide infrastructure support for the network over the next five years.

The deal is a "strategic win" for the Chinese company as it tries to win more overseas business, said David Wolf, CEO of Wolf Group Asia, a Beijing-based technology consultancy. "If they are successful with Telenor, this could be good for ZTE globally," he said.

But as for Telenor, the deal is a risk since ZTE is not a company European operators would normally use, Wolf added. "Traditionally Telenor has built relationships with equipment suppliers from more developed countries," he said.

ZTE would not disclose how much the deal is worth. Telenor could not be reached for immediate comment.

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