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Huawei scores major handset deal from Vodafone

IT Industry - Strategy

Vodafone has contracted Chinese manufacturer Huawei to supply 3G cellphone for sale to its customers in 21 European countries.

Vodafone has not indicated whether it plans to extend the deal to its subsidiaries outside Europe, but chief marketing officer, Peter Bamford, stressed the global benefits, saying "this agreement with Huawei shows the cost benefits Vodafone's size and global reach can bring to our customers. We will be able to offer even better 3G phones at more competitive prices across our markets."

The handsets, aimed at the consumer market will carry only the Vodafone brand, According to Vodafone, this is the first time it has struck such a deal for the consumer market and the agreement "demonstrates Vodafone's ability to utilise its scale to deliver increasing value to its customers."

The agreement also marks Huawei's first significant entry into the European handset market. Vodafone anticipates having the first models on the market in September.