China Motion Telecom International Ltd. (China Motion), a Hong Kong telecommunication company, has signed a memorandum of understanding (MOU) with Ericsson Inc. to develop systems to run China Motion's mobile virtual network operator (MVNO) business in Hong Kong, a company statement said on Monday.
Under the terms of the MOU, Ericsson will help China Motion develop an MVNO platform based on GSM technology, and will offer technical and business consultancy for China Motion's mobile and value-added offerings, the statement said.
"Ericsson will offer help in integration services, network design and planning, as well as operation and maintenance support," said Stephen Yeung, managing director of Ericsson (Hong Kong) Ltd. "With China Motion entitled to establish its own 3G (third generation) MVNO business in the future, we see a lot of benefits in a partnership."
The MOU is the first Ericsson has signed with an Asian MVNO in developing a MVNO business here, said Yeung. "Ericsson's experience with Europe MVNOs could contribute towards the development of China Motion's business," he said. "China Motion's MVNO business has to find value-added services or it cannot compete."
A China Motion spokeswoman said that there was no binding deadline to the MOU, although both companies are trying to work out the details to an agreement. "We are still trying to iron out the partnership details for 2G business, although we will extend it to 3G if all works out," said Monica Chan, Hong Kong-based senior manager of corporate communications at China Motion.