Chinese president attends signing ceremony for USD 1 billion deal between Ericsson and China Mobile

Press release
Jun 10, 2007 10:30 (GMT +00:00)
Ericsson (NASDAQ:ERIC) today signed a GSM expansion framework agreement with China Mobile, valued at about USD 1 billion, at a ceremony in Sweden attended by Chinese President Hu Jintao.
The Chinese President is in Sweden on a state visit at the invitation of King Carl XVI Gustaf of Sweden - the first visit by a Chinese president to Sweden since the two countries established diplomatic relations in 1950.

President Hu Jintao was joined at the signing ceremony by Swedish Prime Minister Fredrik Reinfeldt. Wang Jianzhou, Chief Executive of China Mobile Communications Corporation, and Carl-Henric Svanberg, President and CEO of Ericsson, joined the two leaders at the ceremony.

Svanberg says: "Ericsson is proud of its cooperation with China, which dates back over a century. We are dedicated to supporting the development and growth of China's telecom industry with our global expertise and proven competence. The agreement we are announcing today is further proof of this."

Ericsson's commitment to operations in China is reflected by its continuous increase in local sourcing, up to USD 2.5 billion in 2006, and growing export opportunities, with USD 1.6 billion in exports last year.

Under the new framework agreement, Ericsson will supply core and radio network equipment, along with related technical support and services, to expand China Mobile's GSM coverage in 19 regions of China.

The expansion project, which strengthens Ericsson's position as the leading mobile communications supplier in the Chinese market, will allow China Mobile to boost network capacity and performance, creating new revenue streams from enriched data services and offering an enhanced user experience to hundreds of millions of its subscribers.

Deliveries have already started.

A second major signing ceremony, between Sony Ericsson (the 50-50 joint venture between Sony and Ericsson) and China Postel Mobile Communications Equipment (China Postel), a subsidiary of China National Postal and Telecommunications Appliances Corporation (PTAC), also took place today.

Tan Xinghui, President of PTAC and Chairman of China Postel, Carl-Henric Svanberg, in his capacity as Chairman of the Board of Sony Ericsson, and Gunilla Nordstrom, President of Sony Ericsson China, witnessed the agreement for USD 600 million of mobile phone purchasing. 

Sony Ericsson also recently announced a Memorandum of Understanding with Shenzhen Telling Communications Corporation for mobile phone purchasing valued at more than USD 500 million.

Ericsson is shaping the future of Mobile and Broadband Internet communications through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication companies in the world.

Ericsson Media Relations
Phone: +46 (0) 8 719 6992

Sony Ericsson China - Media contact
Michael Ning
Phone: +86 58656881

Ericsson's cooperation with the Chinese telecom industry
Ericsson's involvement with the Chinese telecom industry began in 1892 when Ericsson received its first order from China. In 1894, 2,000 Ericsson telephone sets sailed across the oceans to Shanghai, signaling the start of Ericsson's role as China's telecom provider. Since then, Ericsson has been actively contributing to China's economic development and the rapid growth of the Chinese telecom industry, while taking part in many "firsts" in the country, such as China's first manual switchboard in service (1900), first automatic exchange in service (1924), first digital exchange (1981) and first analog mobile communications system. Today, China is a strong foothold for Ericsson's manufacturing and supply, R&D and services worldwide.

About Sony Ericsson
Sony Ericsson Mobile Communications serves the global communications market with innovative and feature-rich mobile phones, accessories and PC cards. Established as a joint venture by Sony and Ericsson in 2001, with global corporate functions located in London, the company employs more than 7,500 people worldwide, including R&D sites in Europe, Japan, China and the US. Sony Ericsson celebrated its fifth anniversary on October 1, 2006. For more information on Sony Ericsson, visit

About China Mobile
China Mobile is the leading mobile services provider in China, with the world's largest mobile subscriber base and unified, contiguous all-digital mobile network. China Mobile Ltd was listed on the New York Stock Exchange and The Stock Exchange of Hong Kong Ltd on October 22, 1997 and October 23, 1997, respectively. As of December 31, 2006, the Group had an aggregate staff of 111,998 and a mobile subscriber base of more than 301.2 million. The Group's GSM global roaming services cover 219 countries and regions, and its GPRS roaming services cover 138 countries and regions. For more information, visit

About China Postel
China Postel, a subsidiary of China National Postal and Telecommunications Appliances Corporation, is the largest handset retail company in China, with market share of 30 percent (2006). China Postel has set up a strong and well-positioned channel network across China from distribution to retailers and repair shops. The cooperation between Sony Ericsson and China Postel dates back to 1997, when China Postel began its cooperation with Sony Ericsson's parent company Ericsson. China Postel and Sony Ericsson have a very close and strong cooperation. For more information, visit

About Shenzhen Telling Communications Corporation

Since it was established in September 2006, Shenzhen Telling Communications Corporation has developed into one of the largest and most influential telecom distributors in China. It is a national distributor of Sony Ericsson and other mobile phone manufacturers, and is an authorized repair agent for a number of brands.