BANGALORE (Reuters) - China GrenTech Corp. Ltd. (GRRF.O: Quote , Profile , Research ) said it won a bid to supply wireless network equipment to China Mobile (0941.HK: Quote , Profile , Research ), the world's largest mobile phone operator, for next year's Olympic Games, sending the Chinese wireless services company's shares up. China GrenTech did not disclose the size of the contract.
However, Susquehanna Financial Group analyst Adele Mao estimated the potential contract value in the range of $1 million to $3.5 million.
In addition to supplying equipment, GrenTech will also help design and construct the Olympic wireless local-area network, the company said in a statement.
The network will be used to provide high-speed wireless Internet access for users and cover the Olympic gymnasiums, stadiums and surrounding areas in six Olympic cities, including Beijing, Tianjin, and Shanghai.
Though the contract will not significantly impact the company's bottomline, it signals the improvement of GrenTech's relationship with China Mobile, Mao said by phone.
China GrenTech shares rose about 6 percent to $14.23 in late morning trade on the Nasdaq.
The 2008 Olympics, which will be hosted by Beijing, open on August 8 next year.
(Reporting by John Tilak in Bangalore)
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