& cplSiteName &

Ericsson Boasts Major China Deals

Ray Le Maistre
LR Mobile News Analysis
Ray Le Maistre, Editor-in-Chief
3/29/2010

Ericsson AB (Nasdaq: ERIC) says it has signed framework agreements with two of China's main carriers that, if fulfilled, will be worth US$1.8 billion.

The vendor says it's supplying China Mobile Ltd. (NYSE: CHL) with mobile softswitching equipment and its RBS 6000 multi-standard base station that can handle 2G, 3G, and proto-4G connections. For China Mobile, that means supporting GSM and GPRS for 2G, TD-SCDMA for 3G, and TD-LTE for proto-4G. (See China Pumps $15B Into 3G, China Mobile Fast-Tracks TD-LTE , and LTE Base Station Strategies.)

That deal, which is set to be "implemented this year," will be worth $1 billion if the carrier purchases everything set out in the framework agreement. China Mobile, which has more than 527 million mobile customers, recently announced that it has cut its capex budget for 2010 to $18 billion. (See China Mobile Crunches Its Capex.)

The vendor struck a similar framework deal with China Mobile in 2009. (See Ericsson Inks $1.7B Chinese Framework Deal.)

The deal with China Unicom Ltd. (NYSE: CHU) is much more wide-ranging. Ericsson is supplying HSPA equipment to support the carrier's WCDMA-based 3G rollout, plus IP routers, GPON access equipment, 40-Gbit/s optical transport gear, and IMS (IP Multimedia Subsystem) elements.

Again, the deployment is set to happen this year, and will be worth $800 million to the vendor if the full terms of the framework agreement are met.

Ericsson's 2009 framework deal with Unicom was worth $700 million. (See Ericsson Inks $1.7B Chinese Framework Deal.)

Unicom ended 2009 with 145 million mobile customers, of which 2.7 million were 3G subscribers. (See China Unicom Reports 2009.)

— Ray Le Maistre, International Managing Editor, Light Reading

(0)  | 
Comment  | 
Print  | 
Related Stories
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Featured Video
Upcoming Live Events
March 16-18, 2020, Embassy Suites, Denver, Colorado
April 20, 2020, Las Vegas Convention Center
May 18-20, 2020, Irving Convention Center, Dallas, TX
May 18, 2020, Hackberry Creek Country Club, Irving, Texas
September 15-16, 2020, The Westin Westminster, Denver
All Upcoming Live Events
Upcoming Webinars
Webinar Archive
Partner Perspectives - content from our sponsors
Challenges & Key Issues of Constructing 'MEC-Ready' 5G Bearer Networks for Carriers
By Dr. Song Jun, Senior Solution Architect, Huawei Datacom Product Line
Good Measures for 5G Service Assurance
By Tomer Ilan, Senior Director of Product Management, RADCOM
Automation Scores Against Operational Costs – The Business Benefits of Automation and Orchestration
By John Malzahn, Senior Manager, Service Provider Product Marketing, Cisco Systems
All Partner Perspectives