Ericsson signs $1.8-billion deal with China Mobile, China Unicom

Ericsson, the world's biggest mobile network equipment maker, today said that it has won separate ontracts from two of China's largest mobile operators, China Mobile and China Unicom to supply equipment worth $1.8 billion.

Stockholm, Sweden-based Ericsson will supply radio access equipment to China Mobile, the world's largest mobile operator under a $1-billion deal that will boost the capacity of its mobile network and evolve it into an IP network.

Under an $800 million supply agreement with China Unicom, the country's second-largest mobile operator, Ericsson will provide a faster 3G network with HSPA Evolution technology.

In addition, Ericsson will further expand cooperation with China Unicom in the area of IP and broadband, supplying IP routers, fiber access technologies GPON and 40G WDM as well as IP multimedia subsystem (IMS).

Ericsson said that both contracts will be implemented this year.

"The signing of the significant frame agreements is a manifestation of our continued strong co-operation with our Chinese customers," said Mats Olsson, head of Ericsson in China.

China is the world's biggest mobile phone market having 747.38 million mobile users as of end February 2010.

The Chinese fixed broadband market has also increased to 384 million subscribers, which includes 200 million mobile internet users.