The agreement covers the development of infrastructures, mobile devices and applications, and software and enterprise solutions over the next five years.
Telecom Italia stated that this new deal marks an ongoing collaboration between the companies to develop a nationwide high-speed broadband network (FTTH) and mobile broadband network.
Over the past few years the partnership has already deployed researched and developed technologies and advanced services in mobile and fixed-mobile converged communications.
The agreement was signed by Franco Bernabè, CEO of Telecom Italia Group and Kevin Tao, president Europe of Huawei in the presence of the Chinese vice president Xi Jinping and the Italian Prime Minister Silvio Berlusconi.
“Over the last few years we have seen a shift in how operators perceive Chinese vendors; the vendors have learned some lessons and improved their understanding of foreign businesses,” said Ovum telco strategy practice’s senior analyst Charlie Davies. “There is a cultural aspect to the scepticism around Chinese vendors based on something beyond the telecoms industry.”
The proceedings were part of the Chinese vice president’s official visit to Italy for economic agreements between Italy and China.
“The Italian economy could use all the help it can get,” added Davies. “There’s a wider political agenda of Italy becoming closer to China in the same way the Greek government has made deals with Chinese companies in terms of shipping and so forth. I don’t think you can dismiss the political aspect to this."
T-Mobile Austria has also collaborated with Huawei to launch a reference installation of a single core network for an LTE-based mobile network. At the launch in Vienna, the two companies reportedly said that the installation acted as an example how the companies hope the network will look and work in the future.
The launch followed T-Mobile’s and Huawei’s agreement signed at the end of last year to collaborate on LTE expansion and upgrading of the GSM network across Austria.
