Ericsson Signs Massive GSM Contract

Ericsson has signed a US$600 million Frame Agreement with Guangdong Mobile for the GSM network expansion in Guangdong Province, China. With the expansion, the capacity of Guangdong Mobile's GSM network will reach 36 million subscribers.

According to the agreement, Ericsson will provide infrastructure equipment including hardware and software in this expansion. Nanjing Ericsson Panda Communication Company, Ericsson's largest joint venture in China, will provide the contracted equipment. The delivery for this expansion started in 2003 and will be completed in 2004.

"The Chinese market is strategically important to Ericsson," says Carl-Henric Svanberg, President and CEO of Ericsson. "As a long-term committed partner to local operators, Ericsson has been actively involved in the fast development in China's telecommunication industry by providing the most advanced and cutting-edge technology, solutions and services. We are honored to be awarded this major agreement by Guangdong Mobile, which is the most encouraging confirmation of the strategic partnership between both parties." As the primary GSM/GPRS network equipment supplier, Ericsson has cooperated with Guangdong Mobile since 1987. In addition to the supply of the network equipment, Ericsson also provides professional services and network-related total solutions to Guangdong Mobile to meet its rapid growing business demand."

Posted to the site on 21st August 2003