The contract covers the supply of GSM and GPRS network equipment to Guangxi Mobile in both metro and rural areas. The expansion will further extend the coverage of Guangxi Mobile's network, making GPRS services available throughout the Guangxi Zhuang Autonomous Region.

Ericsson will also enhance the capacity of the network. With the expansion, the subscriber capacity of the GSM network will reach four and a half million.

Nanjing Ericsson Panda Communication Company Ltd., Ericsson's largest joint venture in China, will provide the contracted equipment.

"We are very honored to be chosen by Guangxi Mobile to continuously support them in further network development," said Jan Malm, President of Ericsson in China. "Ericsson has built a long term strategic partnership with Guangxi Mobile. We are fully committed to support our customers, as well as end users to fulfill their needs for communications of all kinds, and continuously contribute to the development of mobile communications in the Autonomous Region."

Ericsson has been active in the Guangxi mobile communications market since 1992, when it deployed a TACS network as a sole supplier for the Autonomous Region. Ericsson has been the main supplier of Guangxi Mobile for its GSM/GPRS network.