Ericsson may involved in China Mobile bribery case

08:58, December 02, 2010      

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Some developments now on the high-profile bribery case at China Mobile's Sichuan branch. A senior official at the mobile service provider is being investigated for taking bribes for equipment purchases. Now it looks like the world's largest telecom company, Ericsson, may be involved.

Ericsson released an exclusive announcement to CCTV. In it, Ericsson expresses clearly that one of their employees is under investigation by a relevant Chinese judicatory department, in relation to the China Mobile case. If there are violations found, the company says it will take appropriate measures. When asked whether the Ericsson employee was involved in the China Mobile bribery case, the company declined to comment while the investigation is underway.

It is reported that Ericsson holds the leading market share of first and second generation telecom equipment. But in recent years, it has faced increasing competition from Chinese companies, such as Huawei and ZTE.

Xiang Ligang, Secretary General of 3G Industry Alliance said "The clients are big, and the total amount of money in each deal is enormous. Different companies deal with a key person and key link to the deal. Even though you may not be willing to ask for money, someone else might send money by all means."

Over the last two years, corruption cases involving equipment purchases have increased. Since June of this year, many senior China Mobile officials in Sichuan and Chongqing were placed under investigation by relevant government department.



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