Built on the Alcatel 1000 Signaling Transfer Point and Alcatel 1000 Multimedia technologies, the switching system will be operational by January, covering 21 provinces in southern China.
"This contract enables China Netcom to interconnect with other service providers in the south to provide competitive offerings as well as service its current customers there," Alcatel said in a statement.
In May, China Netcom absorbed incumbent operator China Telecom's assets and customers in the north as part of the government's effort to deregulate the market.
China Netcom's fixed asset is currently valued at over 200 billion yuan (US$24 billion) and its fixed-line subscribers number 5.7 million. In the first half of the year, its revenue was 34.2 billion yuan (US$4.1 billion), or 16 percent market share. The company has 210,000 employees, most of them are transfers from China Telecom.
Alcatel's other customers in the mainland include Guangdong Telecom and Guangxi Telecom, which are both China Telecom subsidiaries.
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