Ericsson Signs $1 Billion Chinese GSM Contract

Ericsson has signed a GSM expansion framework agreement with China Mobile, valued at about US$1 billion, at a ceremony in Sweden attended by Chinese President Hu Jintao. Under the new framework agreement, Ericsson will supply core and radio network equipment, along with related technical support and services, to expand China Mobile's GSM coverage in 19 regions of China.

The Chinese President is in Sweden on a state visit at the invitation of King Carl XVI Gustaf of Sweden - the first visit by a Chinese president to Sweden since the two countries established diplomatic relations in 1950.

Ericsson's commitment to operations in China is reflected by its continuous increase in local sourcing, up to US$2.5 billion in 2006, and growing export opportunities, with US$1.6 billion in exports last year.

Deliveries have already started.

A second major signing ceremony, between Sony Ericsson (the 50-50 joint venture between Sony and Ericsson) and China Postel Mobile Communications Equipment (China Postel), a subsidiary of China National Postal and Telecommunications Appliances Corporation (PTAC), also took place. Tan Xinghui, President of PTAC and Chairman of China Postel, Carl-Henric Svanberg, in his capacity as Chairman of the Board of Sony Ericsson, and Gunilla Nordstrom, President of Sony Ericsson China, witnessed the agreement for US$600 million of mobile phone purchasing.

Sony Ericsson also recently announced a Memorandum of Understanding with Shenzhen Telling Communications Corporation for mobile phone purchasing valued at more than US$500 million. "

Posted to the site on 11th June 2007