Ericsson Bags $550 China Mobile Contracts, Emerges as Nokia Challenger
Move over Nokia, here comes Ericsson. Nokia (News – Alert) may believe that “Ni hao Wo-duh ming-d’zih Nokia (Hello, my name is Nokia)” has become a catch phrase in China, but Scandinavian competitor Ericsson (News – Alert) is quietly making as much headway in the world’s most populous country. The Swedish company today announced that it has bagged contracts worth $550 million with China Mobile during the first half of 2006. In a statement, Ericsson said the GSM expansion contracts include projects in 17 regions of
China. Ericsson has already started deliveries of network equipment which it claims will be able to support nearly 200 million subscribers across the 17 regions. Under the contracts, Ericsson will provide China Mobile with core and radio networks, together with related technical support and services. It will also deploy its Mobile Softswitch Solution in the contracted regions.
The statement said the expansion projects will not only allow China Mobile to boost network capacity while enhancing operational efficiency and cutting costs, but will also pave the road for future network evolution.
Mats Olsson, president of Ericsson Greater China, said: “We are very proud to be selected by China Mobile, once again, to expand its networks. China Mobile also recently named us ‘Best Partner of China Mobile GSM Target Network Upgrade Project’.” Olsson continued: “This is a clear recognition of not only our advanced technologies and solutions, but more importantly our efficient engagement with China Mobile. The expansion contracts are yet another demonstration of our commitment and capabilities in helping our customer achieve sustained business growth.” Ericsson first entered
China in 1987 when it deployed the first analog mobile communications systems in
Guangdong and
Hebei provinces. It has since become China Mobile’s long-term strategic partner in providing technology, solutions and expertise for advanced voice, data and multimedia services.
China is the world’s fastest growing telecom market. The country’s telecom market has opened up since it joined the World Trade Organization. It has more than 400 million cell phone subscribers and about 100 million mobile phones have sold in the past year. The number of subscribers is expected to rise to at least 600 million within the next three years.
Finland’s Nokia also has made quite a splash in the country, bagging major GSM and GRPS contracts despite legal problems over trademark infringements. Now, Ericsson appears to have become a major challenger.
In late July, Nokia signed an agreement with Hunan Mobile Communication Co., a local arm of China Mobile in
Hunan province, for GSM expansion.
Under the terms of the agreement, Nokia will provide Hunan Mobile Communication with a mobile softSwitch system and services-including network integration, trial operation, and training that will cover the four major cities of
Hunan
Province. Earlier in July, Nokia also signed a $150 million contract to expand GSM and GPRS networks for Henan Mobile in
Henan province. The proposed expansion is meant to significantly increase network coverage and capacity for mobile phones in the province’s rural areas. Nokia said it is deploying its NetAct network and service management system in
Henan. Under the contract, Nokia will also provide network planning, implementation, commissioning, training and care services.The company said it will start deliveries immediately and the network would be operational by the end of September.
Source- http://ipcommunications.tmcnet.com
Technorati : China Mobile, Ericsson, Mobile, Nokia
Ice Rocket : China Mobile, Ericsson, Mobile, Nokia
