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At a ceremony in Beijing that was attended by the Chinese Premier, Wen Jiabao, and the Swedish Prime Minister, Fredrik Reinfeldt, Ericsson signed GSM expansion framework agreements with China's two largest mobile operators, China Mobile and China Unicom, valued at about $1.3 B and $140 M, respectively.
The two operators together provide mobile services to about 550 million subscribers in China and the expansion projects will allow them to boost their network capacity and performance, creating new revenue streams from enriched data services and offering an enhanced user experience.
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 the country. The company 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 the company has previously not been a supplier. It will also supply multimedia solutions for WAP services to help provide attractive new multimedia services and applications. The expansion projects are set to be completed in 2008. Deliveries to both operators have already started.
Carl-Henric Svanberg, president and CEO of Ericsson, said, "Ericsson is continuously committed to supporting China's rapidly expanding telecom industry with our global expertise and proven competence. The new framework agreements 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."