Valued at USD 1.8 billion

Mar 30, 2010 08:30 GMT  ·  By

Telecommunications infrastructure solutions provider Ericsson recently announced the signing of 2G/3G frame agreements with Chinese wireless operators China Mobile and China Unicom, aimed at the expansion of their networks. According to the company, the new deals will offer carriers the possibility to enhance China's communication infrastructure, as well as the related services.

The agreement with China Mobile stipulates that Ericsson will deliver radio access network to the carrier, including a multi-standard radio base station RBS 6000, as well as mobile soft-switching technology. These solutions are set to leverage the network's capacity and to turn it into an IP network. Moreover, the carrier will reach its energy saving goals, Ericsson notes. The deal is estimated at USD 1 billion and is set for implementation during the ongoing year.

According to the agreement with China Unicom, Ericsson will deliver a faster 3G network to the carrier, based on HSPA Evolution technology, so as to deliver better speeds and an enhanced user experience to the carrier's subscribers. The two companies will also work together in the area of IP and broadband, and Ericsson will provide IP routers, fiber access technologies GPON and 40G WDM, along with IP multimedia subsystem (IMS). The company notes that this contract is worth USD 800 million and is also expected to be implemented in 2010.

“The signing of the significant frame agreements is a manifestation of our continued strong cooperation with our Chinese customers. We are confident that we will do an even better job in supplying the latest technology and best-in-class services in time to support Chinese operators in fulfilling the demand of this tremendous market growth,” Mats H Olsson, head of Ericsson Greater China, commented.

As most of you probably know by now, more and more people in China are adopting mobile technologies. 106 million new mobile subscriptions were registered last year, with the total number reaching 747 million. The fixed broadband market is on an upwards road as well, with 103 million subscriptions registered at the end of 2009. With 99 percent of the population already benefiting from wireless coverage, carriers are focused on improving the performance of their airwaves.