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Ericsson to Sign 550-million-dollar Contracts with China Telecoms
LM Ericsson will sign two network contracts with China Telecom Group Guangdong Corp. and Guangdong Mobile Communications Co. Ltd. this week in a US$550 million deal.
The Stockholm-based cellular phone maker and infrastructure leader will build a new fixed network for the telecommunications group and expand mobile phone networks in the southern coastal Guangdong province of China.
Under the agreement with GMCC, Ericsson will expand Guangdong's existing GSM networks, through the provision of system equipment, software upgrades, including GPRS technology to allow faster transmission of data.
"Guangdong, with a population of 70 million and accounting for 18 percent of national telecommunications revenues, is at the spearhead of China's telecom revolution, and by these agreements Ericsson continues to be recognized as long-term partner in the modernization process," Ericsson President Kurt Hellstroem said Wednesday in a news release.
Detailed contracts for the two agreements were expected to be finalized next year, according to Ericsson.
Ericsson, which has more than 100,000 employees in 140 countries, had net income last year of 12.1 billion kronor (US$1.4 billion).
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