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  Friday, 17 July 2009 
Ericsson Signs US$1.7 Billion Framework Agreements with Chinese Operators PDF Print E-mail
Wednesday, 08 July 2009

Ericsson has signed two 2G/3G infrastructure framework contracts with TD-SCDMA-based China Mobile and WCDMA-based China Unicom valued at US$1 billion and US$700 million respectively. According to the deal with China Unicom, Ericsson will become the main supplier to upgrade the operator’s GSM networks in 10 provinces, and will also deploy GSM/WCDMA core network and radio access system in 15 provinces, including transmission, IP and value-added service platform.

Ericsson (NASDAQ:ERIC) today signed framework agreements on 2G/3G mobile communication equipment and related services for 2009 with two major Chinese telecom operators: China Mobile and China Unicom, valued at USD 1 billion and USD 0.7 billion respectively.

China Mobile and China Unicom have received 3G licenses of TD-SCDMA and WCDMA standards respectively at the beginning of 2009. Together the two operators are currently serving more than 620 million mobile subscribers in China. The newly signed 2009 framework agreements will allow both operators to further improve the capacity and performance of their 2G networks and accelerate the initial build-up of their 3G networks, and consequently ensure richer and more innovative mobile communication services to hundreds of millions of Chinese consumers as 3G takes off in China.

Under the framework agreement signed between Ericsson and China Mobile, Ericsson continues to deliver green solutions to support China Mobile's network energy optimization and CO2 emission reduction target. Ericsson will also expand GSM/GPRS network coverage and capacity in 18 provinces in China with related services. In addition, Ericsson also supports China Mobile's 3G network build-out by providing a wide range of innovative TD-SCDMA products and solutions.

Under the framework agreement signed between Ericsson and China Unicom, Ericsson will not only become the main supplier to upgrade China Unicom's GSM networks in 10 provinces, but also provide the operator with GSM/WCDMA core network and/or wireless access system in 15 provinces, including transmission, IP and value-added service platform. Ericsson's strong local support team with global experience plays a key role in supporting China Unicom in launching the world's largest WCDMA commercial networks.

Mats H Olsson, President of Ericsson Greater China, says, "China's 3G market is growing rapidly and the world is watching closely. As the world's undisputed leader of mobile communications technology, Ericsson will spare no efforts in supporting the development of China's telecom industry with our global expertise and technology leadership."

"Ericsson has been devoted to supporting the development of China's telecom industry. The signing of the 2009 framework agreements today further enhances the position of Ericsson as the leading mobile communications supplier in China market. Ericsson will work together with China's operators to ensure rewarding new user experience for Chinese consumers in the 3G era and we are fully confident that we can achieve this objective," says Olsson.

Ericsson is the world's leading provider of technology and services to telecom operators. Ericsson is the leader in 2G, 3G and 4G mobile technologies, and provides support for networks with over 1 billion subscribers and has a leading position in managed services. The company's portfolio comprises of mobile and fixed network infrastructure, telecom services, software, broadband and multimedia solutions for operators, enterprises and the media industry. The Sony Ericsson and ST-Ericsson joint ventures provide consumers with feature-rich personal mobile devices.

Ericsson is advancing its vision of "to be the prime driver in an all-communicating world" through innovation, technology, and sustainable business solutions. Working in 175 countries, more than 75,000 employees generated revenue of SEK 209 billion (USD 32.2 billion) in 2008. Founded in 1876 with the headquarters in Stockholm, Sweden, Ericsson is listed on OMX NASDAQ, Stockholm and NASDAQ New York.

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