Ericsson Gets $1.7B From Chinese Operators

Telecommunications-equipment maker Ericsson(ERIC Quote) signed agreements valued at a total of $1.7 billion to provide China Mobile (CHL Quote) and China Unicom (CHU Quote) with 2G/3G mobile communication equipment and services this year.

Ericsson said Wednesday the framework agreements will allow the Chinese mobile operators to improve the capacity and performance of their 2G networks and accelerate the initial build-up of their 3G networks.

In a deal valued at $1 billion, Ericsson will expand China Mobile's network coverage and capacity in 18 Chinese provinces, and will support the build-out of its 3Q network with products and solutions.

The deal with China Unicom is valued at $700 million. Ericsson said in a statement it will serve as the main supplier to upgrade China Unicom's networks in 10 provinces, and also will provide the company with core network and wireless access systems in 15 provinces.