Nokia (NOK) and Henan Mobile have signed a deal worth US$150 million to expand GSM and GPRS networks in Henan province.

This is the eleventh GSM expansion for Henan Mobile and will significantly enhance network coverage and capacity in the province, especially in the rural area.

Under the agreement, Nokia will supply Henan Mobile with GSM/GPRS radio and core network, including the Nokia MSC Server mobile softswitch.

The Nokia NetAct network and service management system will support the network, and Nokia will provide network planning, implementation, commissioning, training, and care services. Deliveries will start immediately and the network will be operational by the end of September 2006.

"We are delighted to continue our long-term cooperation with Nokia, who, as a world leading end-to-end solution provider, enables us to maintain high-quality network and provide better customer experience. Through this expansion, we will be able to bring the excitement of mobile communications to more people in the province and prepare for future growth," says Yuan Jianguo, General Manager, Henan Mobile.

Nokia has been Henan Mobile's major supplier for every GSM expansion since 1995. Nokia is the operator's sole GSM/GPRS core network supplier and a major supplier of Henan Mobile's radio network.

"Nokia is fully committed to providing high-quality solutions and services to our customers," says James Lin, Vice President, Networks, Nokia China. "The expansion will enable Henan Mobile to increase its customer base and bring about more customer delight by enhancing voice and data services. It also prepares Henan Mobile for future network evolution."