"The extension of our cooperation with Ericsson Mobile Platforms will enable TCL Mobile to bring the latest technology to the market quickly to further increase the value of our offering to Chinese consumers," says Dr. Wan Mingjian, CEO of TCL Mobile. "Combined with our strength in design, manufacturing and sales and marketing, this will reinforce our leading position in the Chinese market."

"China has not only become the largest mobile phone market world-wide but also one of the most advanced thanks to the early adoption of GPRS and multimedia functionality," adds Jan Pantzar, Vice President Sales & Marketing, Ericsson Mobile Platforms. "We are pleased to be able to expand our cooperation with TCL Mobile to include platforms that will allow TCL Mobile to launch products on the market with superior functionality for multimedia messaging (MMS)."

The deal is further evidence of the ongoing transformation of the mobile phone industry, where previously a handful of companies would supply the complete products to their customers. Today's market trend is that a large number of vendors will build consumer products using crucial solutions supplied by a small number of specialized companies. This brings opportunities for Chinese companies to compete with large international mobile vendors

Under the agreement, TCL Mobile Communication is developing value-added 2.5G GPRS phones based on Ericsson's core mobile handset technology. Ericsson holds the world's largest portfolio of 2.5G and 3G Intellectual Property Rights. Part of this portfolio is now being offered to the market through Ericsson Mobile Platforms, thereby positioning Ericsson as a leading supplier of the core handset technology.