Nokia (CHL) and China Mobile have signed a EUR580 million frame agreement for the purchase of Nokia GSM/GPRS network system equipment.

Under the frame agreement, Nokia will supply China Mobile GSM/GPRS radio and core network equipment, including base stations and Nokia MSC Server mobile softswitch, for network expansions in China during 2006. In addition, Nokia will provide professional services, including network planning, implementation and care services for the network expansion. Deliveries have already started.

"The frame agreement reaffirms China Mobile's trust in Nokia and our capability to provide complete solutions. Nokia is well positioned and fully committed to support operators exploring the potential of GSM networks. We can help operators to prepare for future network evolution with the unique end-to-end capability of our unified core network, multi-access solutions, handset leadership and services offering," says James Lin, Vice President, Networks, Nokia China.

Nokia's strategic cooperation with China Mobile started in 1994. Since then Nokia has provided GSM networks to over 20 of China Mobile's provincial affiliates. With Nokia's support, China Mobile has realized many industry firsts in China, including the first international GSM roaming network, the first GSM call, and the first multimedia service with a Nokia device supporting MMS.