Ericsson (ERIC) signed GSM expansion framework agreements this week with China Mobile and China Unicom valued at about US$1.3 billion and US$140 million, respectively.

The ceremony in Beijing was attended by Chinese Premier Wen Jiabao and Swedish Prime Minister Fredrik Reinfeldt, who is in China on an official visit. China Mobile and China Unicom together provide mobile services to about 550 million subscribers in China. The expansion projects will allow both operators to boost their network capacity and performance, creating new revenue streams from enriched data services and offering an enhanced user experience.

Under the framework agreement with China Mobile, Ericsson will be one of the main suppliers of core and radio network equipment, along with related technical support and services, to expand GSM/GPRS coverage and capacity in 19 regions across China. Ericsson will also provide power-saving features that significantly reduce energy consumption in mobile networks and contribute to reducing carbon-dioxide emissions. This follows the "Green Action Program", a Strategic Cooperation Memorandum previously signed between the two parties.

Under the agreement with China Unicom, Ericsson will be the main supplier and help expand GSM networks in 10 regions across China, including Beijing where Ericsson has previously not been a supplier. Ericsson will also supply multimedia solutions for WAP services to help provide attractive new multimedia services and applications.

The expansion projects are set to be completed in 2008. Deliveries to both operators have already started.