China and Sweden top leaders attend signing ceremony for USD 1.44 billion deals between Ericsson and Chinese mobile operators

Press release
Apr 14, 2008 10:35 (GMT +00:00)
Today Ericsson (NASDAQ:ERIC) signed GSM expansion framework agreements with China's two largest mobile operators, China Mobile and China Unicom, valued at about USD 1.3 billion and USD 140 million respectively. The ceremony in Beijing was attended by Chinese Premier Wen Jiabao and Swedish Prime Minister Fredrik Reinfeldt, who is in China on an official visit.

China Mobile and China Unicom together provide mobile services to about 550 million subscribers in China. The expansion projects will allow both operators to boost their network capacity and performance, creating new revenue streams from enriched data services and offering an enhanced user experience.

Under the framework agreement with China Mobile, Ericsson will be one of the main suppliers of core and radio network equipment, along with related technical support and services, to expand GSM/GPRS coverage and capacity in 19 regions across China. Ericsson will also provide power-saving features that significantly reduce energy consumption in mobile networks and contribute to reducing carbon-dioxide emissions. This follows the "Green Action Program", a Strategic Cooperation Memorandum previously signed between the two parties.

Under the agreement with China Unicom, Ericsson will be the main supplier and help expand GSM networks in 10 regions across China, including Beijing where Ericsson has previously not been a supplier. Ericsson will also supply multimedia solutions for WAP services to help provide attractive new multimedia services and applications.

The expansion projects are set to be completed in 2008. Deliveries to both operators have already started.

Carl-Henric Svanberg, President and CEO of Ericsson says: "Ericsson is continuously committed to supporting China's rapidly expanding telecom industry with our global expertise and proven competence. The new framework agreements announced today further strengthen Ericsson's position as the leading mobile communications supplier in the Chinese market. It reflects our vision of providing communications for all, and we are proud to be an integral part of China's economic and social development."

Mats H Olsson, President of Ericsson Greater China, says: "We are very excited to be carrying out these expansion projects for both China Mobile and China Unicom. It is a privilege for Ericsson to be able to work with our long-term strategic partners to provide advanced, innovative services to hundreds of millions of consumers in China."

The ceremony was also attended by Wang Jianzhou, President of China Mobile, Shang Bing, President of China Unicom, Michael Treschow, Chairman of Ericsson, Carl-Henric Svanberg, President and CEO of Ericsson and Mats H Olsson, President of Ericsson Greater China.
Note to editors:
Read more about energy efficiency and power-saving feature here:

Ericsson is the world's leading provider of technology and services to telecom operators. The market leader in 2G and 3G mobile technologies, Ericsson supplies communications services and manages networks that serve more than 185 million subscribers. The company's portfolio comprises mobile and fixed network infrastructure, and broadband and multimedia solutions for operators, enterprises and developers. The Sony Ericsson joint venture provides consumers with feature-rich personal mobile devices.
Ericsson is advancing its vision of 'communication for all' through innovation, technology and sustainable business solutions. Working in 175 countries, more than 70,000 employees generated revenue of USD 27.9 billion (SEK 188 billion) in 2007. Founded in 1876 and headquartered in Stockholm, Sweden, Ericsson is listed on the Stockholm, London and NASDAQ stock exchanges.
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About China Mobile Communications Corporation
Officially established on April 20, 2000, China Mobile has a registered capital of USD 7.4 billion and assets of more than USD 100 billion. China Mobile is listed on the New York and Hong Kong Stock Exchanges. Currently, in terms of its market value, China Mobile is the largest of all the overseas-listed Chinese companies and all the telecom carriers in Asia. China Mobile provides GSM roaming services for over 350 operators in 231 countries and regions and GPRS roaming services for 187 operators in 161 countries and regions in the world. It also provides SMS services, interworking with 262 operators in 110 countries and regions and MMS services interworking with 74 operators in 44 countries and regions. For more information, visit
About China Unicom
China Unicom was established on July 19, 1994. It is the only Chinese telecom operator simultaneously listed on the New York, Hong Kong and Shanghai Stock Exchanges. China Unicom's telecom services cover GSM and CDMA mobile services, fixed voice services in select markets, data communication including internet and VoIP, value-added telecom services and so on. China Unicom now owns a gross asset of over USD 20.6 billion. Total subscribers reached 162.5 million by December 2007. For more information, visit (Chinese only).