Ericsson signed a GSM expansion framework agreement with China Mobile, valued at about USD 1 billion, at a ceremony in Sweden attended by Chinese President Hu Jintao.

President Hu Jintao was joined at the signing ceremony by Swedish Prime Minister Fredrik Reinfeldt. Wang Jianzhou, Chief Executive of China Mobile Communications Corporation, and Carl-Henric Svanberg, President and CEO of Ericsson, joined the two leaders at the ceremony.

Svanberg says: “Ericsson is proud of its cooperation with China, which dates back over a century. We are dedicated to supporting the development and growth of China’s telecom industry with our global expertise and proven competence. The agreement we are announcing today is further proof of this.”

Ericsson’s commitment to operations in China is reflected by its increase in local sourcing, up to USD 2.5 billion in 2006, and growing export opportunities, with USD 1.6 billion in exports last year.

Under the new framework agreement, Ericsson will supply core and radio network equipment, along with related technical support and services, to expand China Mobile’s GSM coverage in 19 regions of China. The expansion project will allow China Mobile to boost network capacity and performance, creating new revenue streams from enriched data services and offering an enhanced user experience to hundreds of millions of its subscribers. Deliveries have already started.