Ericsson Signs $1B Deal With China Mobile

Ericsson agrees to help China Mobile expand GSM for $1 billion

Ericsson signed a GSM expansion framework agreement with China Mobile, valued at about $1 billion. 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.

"Ericsson is proud of its cooperation with China, which dates back over a century. We are dedicated to supporting the development and growth of China's telecom industry with our global expertise and proven competence," said Carl-Henric Svanberg, President and CEO of Ericsson. "The agreement we are announcing today is further proof of this."

Ericsson's involvement with the Chinese telecom industry began in 1892 when Ericsson received its first order from China. In 1894, 2,000 Ericsson telephone sets sailed across the oceans to Shanghai, signaling the start of Ericsson's role as one of China's telecom providers.

The recent GSM deal was one that even caught the attention of Chinese President Hu Jintao, as he attended the signing ceremony while on his Sweden state visit at the invitation of King Carl XVI Gustaf. Hu Jintao’s visit is a first by a Chinese president to Sweden since the two countries established diplomatic relations in 1950.

Reference:Marcus Yam,dailytech