Ericsson inks US$1.44 bln GSM expansion deal with China

Ericsson, the Swedish telecom equipment supplier, has signed GSM expansion framework agreement with two leading Chinese mobile operators, China Mobile and China Unicom, valued at US$1.3 billion and US$140 million respectively, sources reported.

Under the agreement, Ericsson will assist China Mobile to expand GSM/GPRS coverage and capacity in 19 regions across China by supplying core and radio network equipment as well as related technical support and services.

The Swedish company will also be the main supplier of China Unicom to expand GSM network in 10 regions in China. Besides, it will supply multimedia solutions for WAP services.

The expansion projects are expected to be completed this year.

Currently, China Mobile and China Unicom have 550 million mobile subscribers in total, and they hope the deal could enrich their data services so as to diversify their revenue source.

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