Huawei Technologies, China's leading telecommunications equipment maker, will build a third-generation network for Telfort, the Dutch mobile operator, its first such contract in Europe.

The deal, announced on Thursday and worth hundreds of millions of euros, marks a substantial milestone in Huawei's international expansion one closely watched by its Western rivals. The Chinese group has been steadily building its business in the Middle East, South America and Asia. The 3G deal will give it an important foothold in Europe. ?This is a great step forward for Huawei on our way to become a supplier of mobile solutions on a global scale,? said Ren Zhengfei, Huawei's founder.