KUALA LUMPUR: Green Packet Bhd subsidiary Packet One Networks (Malaysia) Sdn Bhd (P1) has awarded a US$28.34 million (RM103.44 million) contract to ZTE (Malaysia) Corporation Sdn Bhd for the second phase of its WiMAX network rollout.

The contract is expected to be completed by end-2010. Green Packet said it would be funded via internal funds and bank borrowings.

P1’s planned phase two WiMAX network deployment comprises over 450 new sites in strategic market centres nationwide. For 2009, P1 aims to have 700 new sites up by year-end.

In a statement released in conjunction with the signing ceremony here yesterday, P1 chief executive officer Michael Lai said the company would spend RM1 billion in capital expenditure over the next five years.

The ceremony was witnessed by Deputy Minister of Energy, Water and Communications Datuk Joseph Salang and China’s ambassador to Malaysia, Liu Jian.

Since its  launch last August, the P1 WiMAX service is available in many areas of the Klang Valley and selected areas in Johor, Kedah and Penang.

ZTE managing director Zheng Bang said as one of the 15 WiMAX Forum Board members, ZTE had been a strong promoter and a critical player within the WiMAX ecosystem.

ZTE is now the world’s second largest WiMAX equipment provider by commercial WiMAX deployment contracts share globally. To date, it has successfully deployed WiMAX networks in 23 countries serving over 35 operators.

This article appeared in The Edge Financial Daily, March 20, 2009.