14 DAY TRIAL // Ericsson unveiled today that it has signed two "GSM expansion framework agreements" with China Mobile and China Unicom, the giant Chinese mobile operators. The agreements were announced during a ceremony in Beijing, attended by Wen Jiabao, China's Premier, and Fredrik Reinfeldt, Sweden's Prime Minister.
The contract with China Mobile is valued at $1.3 billion and authorizes Ericsson to expand the operator's GSM / GPRS coverage in no less than 19 Chinese regions. The Swedish company will also come with power-saving solutions in order to reduce energy consumption. Part of the "Green Action Program", the power-saving solutions will lead to lower carbon-dioxide emissions.
Under the agreement with China Unicom (valued at about $140 million), Ericsson will help the operator to expand its GSM network across 10 Chinese regions, including the country's capital, Beijing. Moreover, Ericsson will provide WAP-related multimedia solutions, allowing the new multimedia applications and services to be deployed.
Carl-Henric Svanberg, President and CEO of Ericsson, declared about the new deal with the Chinese operators: "Ericsson is continuously committed to supporting China's rapidly expanding telecom industry with our global expertise and proven competence. The new framework agreements announced today 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."
China Mobile has about 370 million subscribers and it's the largest mobile operator in the world, while China Unicom has "only" about 160 million, being the third largest mobile carrier (Vodafone is on the second place, but it has the advantage of being present in many countries across the globe).
The collaborations between China Mobile, China Unicom and Ericsson are beneficial for all parties and, what's more important, they're beneficial for China's mobile users, as they will bring more advanced networks.