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Frame agreements with China Mobile and China Unicom

Zafar Anjum | March 30, 2010
Agreement valued at US$1.8 billion

SINGAPORE, 30 MARCH 2010 Chinese telcos China Mobile and China Unicom today signed 2G/3G frame agreements with Ericsson, one of the world's leading providers of technology and services to telecom operators.

Under the agreement with China Mobile, Ericsson will provide a radio access network including a multi-standard radio base station RBS 6000 and mobile soft-switching technology, which will drastically boost the capacity of the network and evolve it into an IP network, said a spokesperson of Ericsson. With such solutions, Ericsson will also help China Mobile to achieve their energy saving goals. The framework contract is worth US$1 billion and will be implemented during 2010.

In the agreement with China Unicom, Ericsson will provide a faster 3G network with HSPA Evolution technology to secure higher speed and better user experience for consumers, said the sources at Ericsson . Also, Ericsson will further expand cooperation with China Unicom in the area of IP and broadband, supplying IP routers, fibre access technologies GPON and 40G WDM as well as IP multimedia subsystem (IMS).

According to the Ericsson spokesperson, the framework contract with China Unicom is worth US$800 million and will also be implemented during 2010.

The signing of the framework contracts is an important step given that Chinese telcos have a potential customer base of 1.3 billion, said Ericsson in an announcement. The signing of the significant frame agreements is a manifestation of our continued strong cooperation with our Chinese customers, said Mats H. Olsson, head of Ericsson Greater China. We are confident that we will do an even better job in supplying the latest technology and best-in-class services in time to support Chinese operators in fulfilling the demand of this tremendous market growth.


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