U.S. telecommunication giant Motorola (News - Alert) has been awarded a new contract worth $28 million by Vietnam Posts and Telecommunications Group (VNPT), for upgrading and expanding GSM mobile phone network that it deployed across 12 northern provinces of this Southeast Asian country last year.

 

The agreement will see Motorola set up more than 1,000 cell sites and supply GSM infrastructure as part of expanding Vinaphone's network and services in suburban and rural areas.

 

In addition, Motorola will offer a range of services including network optimization and maintenance.

 

This is Motorola's second GSM network expansion project with VNPT in six months. Motorola and Vinaphone previously signed contracts in December 2007 to expand and enhance the cellco's GSM network in major cities including Hanoi and HCM City. The two companies are also cooperating in expanding GPRS coverage and providing EDGE data services.

 

"Motorola is committed to provide leading communications technology to meet the growing demand of Vinaphone in providing high quality and reliable voice and data communications services to subscribers," said Ray Owen (News - Alert), general director of Motorola Vietnam.

 

Dr. Hoang Trung Hai, chief executive officer of Vinaphone said, "The contracts aim to expand our GSM network deployed in the northern provinces of Vietnam last year. It will enable us to provide better coverage, capacity and user experience in rural and suburban areas."

 

The news contract reinforces Motorola's presence in the GSM market and its relationship with Vinaphone, which currently provides coverage in 64 provinces and cities in Vietnam and has links with mobile operators in more than 60 countries.

 

A subsidiary of Vietnam Posts and Telecommunications Group, Vinaphone’s popular new services are prepaid mobile phone and international roaming.

 

A Fortune 100 company with global presence and impact, Motorola had sales of $36.6 billion in 2007. Although their sales in the GSM market are improving, Motorola’s handset market is struggling.