MAR 01] MARCONI NEWS
Marconi Shares Slide Despite £20m Deal
firm Marconi has seen its share price continue to tumble,
despite announcing contracts with over £20 million with Chinese
the company based in New Century Way went onto the NASDAQ last
year its share price has tumbled by two thirds. Another tortuous
session this morning on the London Stock exchange saw a further
16p wiped of its value, as shares dipped below 400p.
company, which is due to create 2,500 new jobs in Coventry over
the next three years, is also expected to make a statement about
its future prospects soon.
news comes at a time when Marconi has continued to make inroads
into new markets.
has announced a wave of new contracts with provincial Chinese
telecoms operators, regional utilities and a Cable Television (CATV)
enterprise moving into the internet.
contracts will play a key role in China’s plans to double the
number of fixed telephone lines from 100 million to 200 million
country's 20 million line-per-year fixed network growth is more
than the rest of Asia put together. Last year there were 25
million new mobile users in China.
new contracts won by Marconi include four from provincial
operators owned by China Unicom - the country's second largest
telecoms company. They are in Shanghai, Guangdong, Anhui and
them they have purchased Marconi solutions worth US$35 million.
A fifth provincial operator, Ningxia Telecom, part of
China Telecom, has also opted for Marconi's Coventry-developed
Synchronous Digital Hierarchy (SDH) fibre optic technology to
develop its network.
of China's major regional utility companies, North China and
North East China Electric & Power, have chosen Marconi SDH
to build an inter-company connection carrying voice and data at
high speed over optical fibre.
southern China, regional cable television company Jiangmen CATV
has purchased a Marconi switching solution which will create a
new high-speed internet protocol network serving banks, power
utilities, businesses and official organisations including
Peter Brown, President of Marconi Communications Europe, Middle
East, Africa and Australasia, said:
latest wins are clear evidence that operators throughout China
see Marconi as a major solutions-provider in a broad range of
network applications, as the country continues its programme
of modernising and expanding its communications
also demonstrate the success of our strategy to develop our
position in China with multiple routes to market, including
joint manufacturing ventures with key local players and a
strong marketing and customer service presence