Southwest China Expands Two Major Mobile Network with Ericsson

4/30/2004 - Ericsson has signed two major mobile network expansion deals in Sichuan Province, Southwest China, valued at over USD 120 million. The CDMA2000 1X network expansion agreement was reached with Sichuan Unicom, while the GSM network expansion agreement, was entered into with Sichuan Mobile.

Under the agreement with Sichuan Unicom for expansion of its CDMA2000 1X network, Ericsson will provide its end-to-end solution in new low-density areas. In addition, Ericsson will enhance coverage and capacity of existing CDMA2000 1X networks. Deployment of the network equipment has already begun and the commercial service is expected to begin by the end of June 2004.

According to the agreement with Sichuan Mobile, Ericsson will supply hardware as well as software to pave the way for future 3G deployment and to expand the GSM network coverage in the province. The implementation of the contract will be finished at the end of 2004.

Mr. Robert James Parris, Executive Vice President of Ericsson China and General Manager of Region Central, said, "Ericsson is honored to once again be chosen by our customers to provide our industry-leading network equipment and solutions to Sichuan in order to meet the fast growing local communications needs, " He continued, "The two agreements further demonstrate Ericsson's technology and market leadership in both major mobile standards CDMA and GSM and our long-term commitment in China."

In 1996, Ericsson signed the first contract with Sichuan Unicom for deployment of GSM network, and in 2000, Ericsson began to help Sichuan Unicom build its CDMA network. Since then it has become Sichuan Unicom's largest mobile network infrastructure provider both for CDMA2000 1X and GSM.

Ericsson started its cooperation with Sichuan Mobile in 1993, when Ericsson helped deploy a TACS network in the province. In 1997, Ericsson began to provide Sichuan Mobile the GSM network equipment, and it is now the largest GSM equipment supplier of Sichuan Mobile.

Ericsson is shaping the future of Mobile and Broadband Internet communications through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication companies in the world.

About Sichuan Unicom
China United Telecommunications Corporation (China Unicom) is China's only mobile communications carrier to operate both CDMA and GSM networks. Established in July 1994 and listed in Hong Kong and New York Stock Exchanges, China Unicom is the country's second largest mobile operator. By the end of March 2004, China Unicom has had a total of 98.29 million mobile phone subscribers for its CDMA and GSM networks.

China Unicom is now also the country's only fully licensed telecom operator, providing a full range of telecom services such as domestic and international long-distance call service, mobile phone and data/IP network communications.

Sichuan United Telecommunications Corporation, or Sichuan Unicom is a subsidiary of China United Telecommunications Corporation.

About Sichuan Mobile
China Mobile Communications Corporation (or China Mobile), listed in Hong Kong and New York Stock Exchanges, is the country's largest mobile communications operator, claiming a total of 177 million mobile phone subscribers by the end of 2003.

Sichuan Mobile Communications Corporation is one of the 21 wholly-owned subsidiaries of China Mobile, with a total of more than 8 million GSM subscribers in the province.

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