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Ericsson wins China deals worth $1.4 billion

(Agencies)
Updated: 2008-04-15 11:47

Visitors pass by Ericsson's booth at China (Nanjing) International Software Product Expo 2007 on September 2, 2007 in Jiangsu province. Ericsson signed framework network expansion agreements worth $1.44 billion with China's two top mobile operators.[Asianewsphoto]

Telecom equipment maker Ericsson signed framework network expansion agreements worth $1.44 billion with China's two top mobile operators, the Swedish company said on Monday.

Telefon LM Ericsson, the world's biggest mobile network maker, said a GSM expansion deal with China Mobile was worth around $1.3 billion and a second agreement with China Unicom would pull in another $140 million.

China Mobile said in March it expected its capital expenditure to reach around 127 billion yuan ($18 billion) in 2008, well above earlier analyst forecasts of around 98 billion.

China Unicom intends to lift capital spending 18 percent in 2008 to around 31 billion yuan.

Swedish Prime Minister Frederik Reinfeldt, in China for an official visit, attended the signing ceremony.

The Swedish firm said in a statement the framework agreement with China Mobile would make it one of the main suppliers of core and radio network equipment and technical support to expand GSM/GPRS coverage in 19 regions in China.

Ericsson will also be the main supplier to China Unicom for its GSM expansion in 10 regions, including the capital Beijing.

The two Chinese firms provide services to around 550 million subscribers and the expansions will allow them to boost network capacity and performance, the statement said.

The projects are expected to be completed in 2008.