Ericsson and GMCC Sign Contracts for GSM and GPRS Expansion in Guangdong, China

Ericsson (NASDAQ:ERICY) and Guangdong Mobile Communication Corporation (GMCC) have signed two contracts for the further expansion of GMCC's GSM/GPRS network.

Ericsson will provide equipment, software and services in the expansion. The contracts, which stem from the key framework agreement signed with GMCC in September 2000, are together valued at nearly $535 million.

GMCC's GSM network will after expansion accommodate more than 27 million subscribers and will offer GPRS-based services over its entire coverage area.

Ericsson will deploy a number of features in the network to further enhance operation and provide new value-added services for end-users, such as integrated pre-paid functions. GPRS functionality will enable GMCC to offer their customers a range of advanced mobile Internet services.

Equipment in both contracts is supplied by Ericsson's largest joint venture in China, Nanjing Ericsson Panda Communications Company Ltd. The delivery has already started and the projects will be completed next year.

"The GMCC mobile network is one of the most advanced telecommunications networks in China," says Stephen Yeung, Executive Vice President of Ericsson (China) Co. Ltd. "We are glad that GMCC has again shown its confidence and trust in Ericsson as a strategic business partner. With Ericsson's leading position in, for example, WAP, GPRS and 3G technologies, I believe Ericsson will have a continuous co-operation with GMCC."


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