Ericsson (ERICY) has been awarded a USD805 million contract by Guangdong Mobile to expand its GSM network in Guangdong Province.

According to the contract Ericsson provides the infrastructure and equipment, including hardware and software, for expansion of Guangdong Mobile's GSM network. Delivery of equipment has already started early this year and the implementation of the contract will be completed by the end of March 2005. After this expansion, the capacity of Guangdong Mobile's GSM network will reach 54 million subscribers.

"We are very honored to be awarded this GSM expansion contract by Guangdong Mobile, bringing our partnership to an even higher level," said Mats H. Olsson, president Ericsson China. "We already have a well-established presence in Guangdong Province, and with our increasing efforts and investments in setting up a new mobile data applications development center in Guangzhou, we will fully leverage our experience and expertise in mature and sophisticated mobile markets and provide tailor-made solutions to our customers in China."