Ericsson Bags US$630M GSM Network Deal in China

STOCKHOLM (03/30/2000) - L.M. Ericsson Telephone Co. yesterday announced a deal valued at more than US$630 million [M] to provide mobile phone network equipment, software and services for the expansion of an existing network in China's Guangdong province.

Under the terms of the agreement, Ericsson will supply network infrastructure equipment to enable Guangdong Mobile Communications Co. Ltd. (GMCC) to expand the subscriber capacity of its dual-band 900MHz/1.8GHz GSM (global system for mobile communications) network, the Stockholm-based mobile phone and network equipment vendor said in a statement.

Once completed early next year, the expanded network's subscriber capacity will exceed 18 million subscribers, the statement said.

Billed by Ericsson as the largest GSM network expansion project to date in China, the deal marks the sixth expansion of GMCC's digital network, the company said.

As part of the deal, Ericsson will supply GMCC with release 8 of its GSM system software, designed to support the introduction of higher speed data and multimedia services as well as the evolution from GSM to third-generation mobile technology.

Ericsson is not alone in benefiting from China's voracious appetite for wireless communications. Motorola Inc., for example, earlier this week announced that its Network Solutions Sector has signed a deal valued at $14.5 million to supply equipment for a 1.8GHz GSM network in the Shandong province.

Under the terms of the agreement with Shandong Mobile Communications Corp., Motorola in May will deploy the network which will have capacity to serve 150,000 subscribers in four major cities in the province, Motorola said in a statement.

Ericsson, in Stockholm, can be reached at +46-8-719-0000, or via the Web at Motorola, in Schaumburg, Illinois, is at +1-847-576-5000, or at

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