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Ericsson wins China contracts worth $1.8 bln

Ericsson, the world's biggest mobile network gear maker, said it has secured two contracts from Chinese operators totaling $1.8 billion.

The telecoms firm said it clinched the contracts from China Mobile -- the world's largest mobile carrier -- and China's No. 2 mobile firm, China Unicom.

Under the $1 billion deal with China Mobile, Ericsson said it would provide a radio access network this year, drastically boosting capacity for the operator.

It has also agreed with China Unicom, in a $800 million contract to be implemented this year, to provide a faster 3G network with HSPA Evolution technology while also expanding its cooperation with the carrier in the area of IP and broadband.

Ericsson faces fierce competition for new orders, especially from China's Huawei which has pinched contracts on Ericsson's home turf in recent quarters. Rival Nokia Siemens Networks is also expected to be more aggressive in pitching for business than in recent years.

Mats Olsson, Head of Ericsson Greater China, said in a statement the deals represented the company's strong cooperation with its Chinese customers to meet demand in a rapidly growing market. (Reuters)