Ericsson Bags $1.44 billion in China

Ericsson announced today that it has signed contracts with China Mobile and China Unicom. Ericsson is a wireless equipment maker. The two contracts will expand Ericsson’s Global System for Mobile Communications (GSM) networks and bag the company a hefty profit from the $1.44 billion sale.

The sale to China Mobile is by far the larger of the two, coming in at $1.3 billion. This will make Ericsson one of the main suppliers of core and radio network equipment in China. The company will also provide technical support and services and include power-saving features that reduce energy consumption in mobile networks.

The $140 million agreement with China Unicom will supply China’s second largest mobile provider with multimedia solutions for wireless access provider. Simply translated, WAP services.

Deliveries of equipment have already started and both projects are expected to be finished this year.