Ericsson has signed long term supply agreements worth $1.7bn for 2G/3G mobile network infrastructure and related services for 2009 with two Chinese telecom operators
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operators, China Mobile and China Unicom have received 3G licences to offer mobile services based on two different network standards, TD-SCDMA and WCDMA respectively.
Ericsson is providing infrastructure for both standards.
It is difficult to under-estimate the potential importance of China's 3G roll-out for the global mobile phone industry, and its potential to be one of the first high-tech markets to emerge from the economic downturn.
Economic programmes in China have helped to push mobile phone shipments up 9% in the first quarter of the year.
According to marketwatcher iSuppli, sales of brand-name GSM-based mobile handsets amounted to 44 million units in the first quarter of 2009, compared to 42 million in the first quarter of 2008.
Together the two operators are currently serving more than 620 million mobile subscribers in China.
The newly signed 2009 framework agreements will allow both operators to further improve the capacity and performance of their 2G networks and accelerate the initial build-up of their 3G networks.
Ericsson will provide systems for China Mobile's network energy optimisation programme and it will also expand GSM/GPRS network coverage and capacity in 18 provinces in China with related services.
Ericsson also supports China Mobile's 3G network build-out by providing a wide range of innovative TD-SCDMA products and solutions.
The agreement with China Unicom will see Ericsson becoming the main supplier to upgrade the operator's GSM networks in 10 provinces.
It will also provide the operator with GSM/WCDMA core network and/or wireless access system in 15 provinces, including transmission, IP and value-added service platform.
"China's 3G market is growing rapidly and the world is watching closely. As the world's undisputed leader of mobile communications technology, Ericsson will spare no efforts in supporting the development of China's telecom industry with our global expertise and technology leadership," said Mats H Olsson, president of Ericsson Greater China.