L.M. Ericsson announced it has signed a GSM expansion framework deal with China Mobile Communications Corp. valued at $1 billion. Chinese President Hu Jintao and Swedish Prime Minister Fredrik Reinfeldt were joined by Wang Jianzhou, CEO of China Mobile, and Carl-Henric Svanberg, president and CEO of Ericsson, at a signing ceremony for the deal in Sweden.
“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. The agreement we are announcing today is further proof of this,” Svanberg said at Sunday’s ceremony.
Under the agreement, Ericsson will supply core and radio network equipment, as well as technical support and services to expand the carrier’s GSM coverage in 19 regions of China. The expansion project will boost China Mobile’s network capacity and performance, and create new revenue streams from data services, according to Ericsson.
The Chinese president’s visit marked the first state visit by the country’s leader to Sweden since the two countries established diplomatic relations in 1950.
Ericsson rings up $1B contract with China Mobile
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