Ericsson has signed framework agreements on 2G/3G mobile communication equipment and related services for 2009 with two major Chinese telecom operators: China Mobile and China Unicom, valued at USD 1 billion and USD 0.7 billion respectively.
China Mobile and China Unicom have received 3G licenses of TD-SCDMA and WCDMA standards respectively at the beginning of 2009. Together the two operators are currently serving more than 620 million mobile subscribers in China. The newly signed 2009 framework agreements will allow both operators to further improve the capacity and performance of their 2G networks and accelerate the initial build-up of their 3G networks, and consequently ensure richer and more innovative mobile communication services to hundreds of millions of Chinese consumers as 3G takes off in China.
Under the framework agreement signed between Ericsson and China Mobile, Ericsson continues to deliver green solutions to support China Mobile’s network energy optimization and CO2 emission reduction target. Ericsson will also expand GSM/GPRS network coverage and capacity in 18 provinces in China with related services. In addition, Ericsson also supports China Mobile’s 3G network build-out by providing a wide range of innovative TD-SCDMA products and solutions.
Under the framework agreement signed between Ericsson and China Unicom, Ericsson will not only become the main supplier to upgrade China Unicom’s GSM networks in 10 provinces, but also provide the operator with GSM/WCDMA core network and/or wireless access system in 15 provinces, including transmission, IP and value-added service platform. Ericsson’s strong local support team with global experience plays a key role in supporting China Unicom in launching the world’s largest WCDMA commercial networks.
I find the Chinese market fascinating, for lots of reasons – first of all, the potentially huge number of ‘untapped’ subscribers currently – second, the challenge of covering such an enormous land mass. And third, this interesting move by the Government to roll out a whole mixture of 3G technologies – oh, we’ve got pretty much every flavour deploying there – and from this press release, it seems Ericsson are right in the mix!