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Viewing cable 06WARSAW363, POLAND: Netia (Now P4) Chooses Chinese Firm for 3G

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Reference ID Created Released Classification Origin
06WARSAW363 2006-03-03 09:41 2011-08-24 00:00 UNCLASSIFIED Embassy Warsaw
This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS WARSAW 000363 
 
SIPDIS 
 
STATE FOR EUR/NCE/MSESSUMS 
STATE PASS USTR FOR DONNELLY/ERRION 
COMMERCE FOR 4232/ITA/MAC/EUR/OECA/MROGERS 
 
E.O. 12958: N/A 
TAGS: ECPS EINT EINV PL
SUBJECT: POLAND: Netia (Now P4) Chooses Chinese Firm for 3G 
Buildout 
 
1. (U) According to a recent Netia/P4 press release, Chinese 
telecoms equipment vendor Huawei won a contract to build 
third-generation (3G) infrastructure.  P4, formerly known as 
Netia, won a license last year for a Universal Mobile 
Telecommunications System (UMTS) license.  UMTS services are 
designed to offer high-speed data transfer not only for 
voice, but messaging, internet access, etc., via 3G (Third 
Generation) mobile phone architecture. 
 
2. (U) According to the announcement, the value of the first 
stage of the deal, the biggest contract signed in the past 
12 months in the telecommunications sector in Europe, 
amounts to EUR 150 million.  P4 would not disclose the total 
value of the contract to reporters, nor would it say how 
many stages the deal involved.  But information from public 
sources indicates that under contract terms, Huawei will 
provide general solutions for telephony, 3G streaming media, 
and other high-speed services. 
 
3. (U) The first phase of the 3G network will provide 
coverage to Warsaw, Krakow, and several other major cities. 
However, the network will operate only in a "beta" mode 
starting in September, followed by a general commercial 
launch by the end of 2006.  This represents a delay of about 
half a year, as Netia Mobile had announced its original 
intention to roll out service in June 2006 when it won the 
UMTS license last summer.  In a discussion with Econoff, 
Netia staff said the decision to go with a Chinese company a 
low-cost alternative to the more established players from 
the United States and Western Europe was an obvious one.  No 
information was available on what, if any, U.S. firms may 
have expressed interest in the project. 
 
4. (U) P4 is a joint venture between Icelandic-owned Novator 
(70%) and Netia (30%).  The company, previously known as 
Netia Mobile, won the UMTS license in a tender August 2005. 
HILLAS