Ericsson wins contract for China Mobile services

09:05, July 20, 2010      

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The world's top mobile network equipment firm Ericsson has won its largest-ever managed services deal in China, a three-year contract with China Mobile to maintain 22,000 base stations in Hebei Province. China Mobile Hebei has 35 million subscribers.

"It is one of the biggest contracts they could get (in China), and of course they are continuing their good collaboration with China Mobile," Sydbank analyst Morten Imsgard said.

"Strategically it is very relevant they keep getting these deals since ... they need to move more and more toward the soft side of the business instead of just being a hardware vendor."

China's three main telecom operators spent about $21 billion last year building 3G mobile networks.

In March, Ericsson said it had signed a framework deal worth $1 billion with China Mobile, the world's biggest mobile carrier, with more than 500 million subscribers.

But Ericsson wants a bigger share of China Mobile's 3G network business. It said earlier this year it had only got 5-10 percent of China Mobile's 3G business, with the bulk going to Huawei Technologies and ZTE.

Source: Global Times


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