ESPOO, Finland -- Nokia, a leading mobile telecommunications infrastructure supplier, has signed a GSM expansion contract with Yunnan Mobile Communication Co., Ltd. (Yunnan MCC) in China. The contract, valued at approximately USD 63 million, further strengthens Nokia's leading position in GSM networks and mobile softswitch systems deployment in the China area.

Under the agreement, Nokia supplies Yunnan MCC with GSM/GPRS radio and core network, including the Nokia MetroSite base stations, Nokia MSC Server mobile softswitch and Nokia Media Gateway in the Yunnan Province in the Southwest China. Nokia will also provide services including network planning, implementation and other support services. Deliveries have started and the network will be operational in November.

With the Nokia MSC Server mobile softswitch, Yunnan MCC will be able to provide its customers new services, such as Multi-SIM service, which will help Yunnan MCC to generate more revenue and improve its customer retention.

"Yunnan MCC is committed to building a high-quality GSM network to extend mobile services to more people in the province. Thanks to Nokia's innovative end-to-end solutions, we are able to improve the coverage in the rural area significantly, bring higher capacity to the network, and new services to our customers," says Lin Zhenhui, General Manager of Yunnan MCC.

"This year marks the 10-year anniversary of strategic cooperation between Nokia and Yunnan MCC. We are delighted that Nokia solutions have in part enabled the new milestone of 10 million mobile users in the province. We are committed to supporting the operators to explore the potential of GSM networks, generate more revenues and bring new exciting services to the mobile users," says James Lin, Vice President, Networks, Nokia China.

Nokia Corp. (NYSE: NOK)