Ericsson signs $1.8b China frame agreements

Robert Clark
30 Mar 2010

Ericsson has signed frame contracts with China Mobile and China Unicom worth $1.8 billion.

The frame agreements, announced by Ericsson Monday, cover multiple specific contracts that the vendor will sign with Chinese provincial operators during 2010.

Announcement of the frame deals follows analysts’ comments last week that Ericsson’s earnings would be hit by cuts in network spending by Chinese telcos this year.

Ericsson provided few details about the contents of the contracts. It said the agreement with China Mobile was worth $1 billion and included its RBS 6000 multi-standard base station and mobile soft-switching technology.

Its $800 million contract with China Unicom covers HSPA Evolution equipment for the mobile group and IP routers and GPON gear to the fixed-line division.

China’s big three carriers last year accelerated spending as part of the government’s stimulus program. China Telecom has said it expects to slash capex by nearly 50% in 2010, while China Unicom and China Mobile have forecast cuts of 35% and 5% respectively.

Ericsson’s stock on Nasdaq closed at $10.35, up 1.77%.

Related content

Follow Telecom Asia Sport!
No Comments Yet! Be the first to share what you think!
This website uses cookies
This provides customers with a personalized experience and increases the efficiency of visiting the site, allowing us to provide the most efficient service. By using the website and accepting the terms of the policy, you consent to the use of cookies in accordance with the terms of this policy.