The migration of China Telecom's existing network into ENGINE, Ericsson's carrier-class network designed for real-time services and able to carry large and growing volumes of IP-based traffic, supports the expansion and modernization of China's telecommunication market. The contract not only demonstrates Ericsson's leadership in the telecommunication infrastructure market, but also the long-term commitment between Ericsson and China Telecom that stretches over 18 years.

As a unique end-to-end solution provider, Ericsson will not only provide core network, access system, end user equipment and Network Management System, but also provide network implementation, training and consulting service for new service development.

"China Telecom has always been dedicated to seeking for new services and applications appealing to the market," said Mr. Wei Leping, CTO of China Telecom. "The project with Ericsson will not only enable China Telecom to migrate the world's biggest circuit switch network to a multi-service network, but also to grow into a strong Chinese enterprise with international competitiveness."

"Ericsson and China Telecom have a long cooperation in traditional telephony services, such as switch, transmission and data network," said Mr. Zhang Xingsheng, Executive Vice President and Chief Marketing Officer of Ericsson China. "We are honored to have been selected as China Telecom's partner. With Ericsson's strong ENGINE multi-service network solution, Ericsson will help China Telecom to migrate from existing network to a single next generation network successfully."