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China expansion offers the best
September 27, 2004
Ericsson will supply system equipment and telecom services to enable Shandong Mobile to upgrade the capacity and service quality of its network. The expansion will increase network capacity to 18 million subscribers.
China already has about 300 million mobile subscribers and is a highly competitive telecom market with enormous potential for growth. In 2003, China added 63 million new subscribers to its mobile networks - an increase of more than 170,000 a day.
While the 2G market is set for further growth, the 3G market is also about to open up and the government is expected to issue national 3G licenses in the first half of 2005. The Shandong contract includes Ericsson's new AXE810 switching platform and software, which will ensure smooth migration towards a 3G network in the future.
Shandong Mobile General Manager Liu Aili says the operator is committed to providing premium quality network services for its subscribers. "We believe Ericsson's industry-leading technology and extensive network roll-out expertise will help us achieve our business and market goals, while laying a solid foundation for future smooth evolution to 3G technology," Aili says.
Ever since mobile telephony took off in China about 15 years ago, Ericsson has had a strong market share. Today, it has around 40 percent with China Mobile. This latest deal further strengthens Ericsson's long-term strategic partnership with Shandong Mobile. The cooperation dates back to 1995, when Ericsson was selected to build Shandong Mobile's initial GSM900/1800 network. Ericsson has since built the operator's GPRS network and systems, and has remained the sole system supplier of its GSM900 network.
Mats H. Olsson, President of Ericsson China, says it is an honor Shandong Mobile continues to choose Ericsson as its strategic partner to build a premium-quality GSM network.
"Ericsson will continue to proactively support Shandong Mobile in coping with the rapidly-growing market and work seamlessly with Shandong Mobile to better serve mobile users in the province and meet the increasing demand," Olsson says.
The two parties also have full cooperation in other areas such as IP backbone networks, WLAN, microwave transmission and complete professional telecom services.
