China Unicom signs deals with Ericsson, Motorola

Continuing its network expansion, China Unicom has been signing equipment contracts right and left with its infrastructure partners. Motorola Inc.'s Network Solutions Sector (NSS) has signed another seven digital cellular network expansion contracts with China Unicom worth a total of $258 million. This is the second time in one month that Motorola NSS announced hundred-million-dollar contracts with China Unicom. In total, the carrier awarded Motorola NSS $448 million GSM contracts within one month.

Under the terms of the contracts, which partially involve China Eastern Communications Company Ltd (Eastcom) and Guangzhou Jinpeng Group Co., Ltd. (Jinpeng), Motorola will expand China Unicom's GSM 900 networks in five of China's major provinces, which together boast a population of 200 million people. Motorola's Horizonmacro GSM infrastructure solution will be used to expand the GSM networks in Guangdong, Fujian, Jiangxi, Shanxi, and Xinjiang provinces, plus China's special economic zone of Shenzhen.

China Unicom's GSM network capacity will be increased by 3.5 million subscribers as a result of the expansion work, when completed by year-end.

In addition to the GSM 900 network expansions in the five provinces, Motorola also will deploy a GSM 1800 system for China Unicom in Guangdong province. The new GSM 1800 system, which has a total capacity of 800,000 subscribers, represents the first GSM 1800 network deployment for China Unicom.

Ericsson has signed a series of five contracts valued at $176 million for expansion of China Unicom's GSM 900 networks in the five provinces of Jilin, Sichuan, Jiangsu, Anhui, and Hubei. With the implementation of the contracted equipment and service, the total capacity of the Ericsson GSM networks in these five provinces will be increased to 3.83 million subscribers.

The five expansion projects are scheduled to be completed by the end of this year.

During 1999, Ericsson won orders from China Unicom at a total value of more than $220 million. In a deal announced in June 2000 the company became the largest WAP supplier to China Unicom for delivery of infrastructure, equipment, software, services and applications to China Unicom's WAP networks in nine cities in six provinces.

Ericsson's two key manufacturing joint ventures in China, Beijing Ericsson Mobile Communications Co., Ltd and Nanjing Ericsson Mobile Communication Co. Ltd. will supply the equipment and services.

Edited by Ellen Jensen
Managing Editor, Wireless Networks Online