Optus Ltd., Australia's second-ranked telecommunications company, said Wednesday it had selected China's Huawei Technologies to provide it with equipment to support its own fixed-line broadband network.

Shenzhen-based Huawei, which is keen to move into export markets, would provide digital subscriber line (DSL)-based access equipment for high-speed data, voice, video multicasting and business services, an Optus statement said.

Huawei's integrated access multiplex equipment would be installed in exchanges of the country's biggest phone company, Telstra Corp. Ltd., to service Optus's business customers with DSL, the statement said.

Australia's Optus, majority-owned by Singapore Telecommunications Ltd., said if it were to start a consumer DSL roll-out, it would also count on Huawei.

"While we are well advanced in our plans for a consumer DSL rollout, there are still several milestones we need to pass," said Bill Hope, Optus Networks managing director.

On Feb. 1, Optus said it had secured 100,000 DSL subscribers in the first 12 months of launching its service.

Sources close to the deal said Huawei, which also recently won a broadband contract with Optus's parent SingTel, beat British rival Marconi to the contract by offering discounts of up to 25 percent.

Earlier this Month, Huawei and Marconi have set a distribution agreement expected to help extend the company's reach in Europe.

Huawei is China’s largest telecoms equipment supplier, with 24,000 employees and sales in 2004 reported at US$5.6 billion.

(Shenzhen Daily February 24, 2005)