14 DAY TRIAL // Ericsson has signed an agreement with China Mobile in order to make possible the expansion on a new telecommunications market. The GSM framework agreement has been reached at a ceremony which took place in Sweden.
As a result, Ericsson will provide core and radio network equipment in order to make it possible for China Mobile to expand their coverage. 19 more regions in China will be included in the area of coverage as a result of Ericsson's contribution.
Moreover, this contract proves to be highly convenient for Ericsson too, as it ensures its position as one of the first communication suppliers in China. Delivery on the basis of this contract has already started and has highly profitable long-term prospects.
"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", said Carl-Henric Svanberg, President and CEO of Ericsson.
China Mobile expects that their partnership with Ericsson will bring efficiency into their services and lead to high profit rates in the future. Moreover, they will create new revenue streams for enriched data services and increase the network's performance. Figures on the communication development in the last year show that Ericsson has had an important contribution in China. Local sourcing has reached USD 2.5 billion in 2006 and growing export has increased with USD 1.6 billion.
This is not the only profitable agreement which Ericsson has signed recently. The Memorandum of Understanding with Shenzen Telling Communications Corporation was valued at more than USD 500 million at the time it was closed. Even more, Ericsson is planning on signing a similar contract with another leading Chinese company, China Postel Mobile.