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Ericsson inks $1.7-bn deals of 2G/3G GPON technology with Chinese three big operators, China Mobile Communications Corp., China Telecom Corp. Ltd., and China Unicom Ltd.

By Amarendra Bhushan for CEOWORLD Magazine Updated:July 8, 2009

Ericsson has signed long term supply fiber-to-the-home equipment contracts agreements worth $1.7bn for 2G/3G mobile network infrastructure and related services for 2009 with the country’s three big operators, China Mobile Communications Corp., China Telecom Corp. Ltd., and China Unicom Ltd.

The 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.

Swedish wireless equipment maker LM Ericsson announced it has landed fiber-to-the-home equipment contracts with the country’s three big operators, China Mobile Communications Corp., China Telecom Corp. Ltd., and China Unicom Ltd.

Ericsson’s GPON technology is being given a chance to prove its worth in the field, as it’s set to be used for high-speed Internet access and, potentially, high-definition IPTV services, in nine provinces — Anhui, Guangdong, Hebei, Heilongjiang, Hubei, Liaoning, Shandong, Shanghai, and Sichuan.

“Ericsson today signed framework agreements on 2G/3G mobile communication equipment and related services for 2009 with two major Chinese telecom operators: China Mobile and China Unicom, valued at $1 billion and $ 0.7 billion respectively,” the statement said.

“Together the two operators are currently serving more than 620 million mobile subscribers in China,” the company added.

“3G” refers to the new third-generation mobile networks which offer high-speed access to the Internet, email and video.

Ericsson chief executive Carl-Henric Svanberg said earlier this year that China would be a key growth market for the company as it looks to ride out the impact of the global economic downturn on its business.

On July 3, the company announced it had been awarded contracts with China Mobile, China Unicom and China Telecom to provide fixed broadband access in provinces including Guangdong, Shanghai and Sichuan.

Ericsson, which is the world leader in mobile phone network equipment ahead of Nokia Siemens, employs more than 75,000 people worldwide.

On the Stockholm exchange at 1011 GMT on Wednesday, the price of Ericsson shares was up by 0.80 per cent to 75.40 kronor in an overmall market down by 0.08 per cent.

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