Tuesday, 15 April 2008

Ericsson to Boost Network Capacity in China

Ericsson entered into a GSM expansion framework agreement with two of China’s largest mobile operators Monday that will see the communications giant play an integral role in boosting China’s network capacity and performance.

The deal, which was struck with China Mobile and China Unicom is valued at about USD 1.3 billion and USD 140 million respectively.

China expects this project to create new revenue streams from enriched data services and offer an enhanced user experience.

“The new framework agreements announced today further strengthen Ericsson’s position as the leading mobile communications supplier in the Chinese market. It reflects our vision of providing communications for all, and we are proud to be an integral part of China’s economic and social development,” said Carl-Henric Svanberg, President and CEO of Ericsson.

Under the framework agreement with China Mobile, Ericsson will be one of the main suppliers of core and radio network equipment, along with related technical support and services, to expand GSM/GPRS coverage and capacity in 19 regions across China. Ericsson will also provide power-saving features that significantly reduce energy consumption in mobile networks and contribute to reducing carbon-dioxide emissions.

This follows the “Green Action Program”, a Strategic Cooperation Memorandum previously signed between the two parties.

Under the agreement with China Unicom, Ericsson will be the main supplier and help expand GSM networks in 10 regions across China, including Beijing where Ericsson has previously not been a supplier. Ericsson will also supply multimedia solutions for WAP services to help provide attractive new multimedia services and applications.

“We are very excited to be carrying out these expansion projects for both China Mobile and China Unicom. It is a privilege for Ericsson to be able to work with our long-term strategic partners to provide advanced, innovative services to hundreds of millions of consumers in China,” said Mats H Olsson, President of Ericsson Greater China.