Ericsson to boost Sichuan GSM capacity

Ericsson to boost Sichuan GSM capacity Ericsson has signed a USD 85 million (SEK 670 million) contract with Sichuan Post and Telecommunication Administration in Chengdu, China, for the expansion of the province's existing GSM 900 network. Financing for the project, known as the GSM Phase Six Project, is provided through Telpo Communications Group Ltd. and International Far East Leasing Co. Ltd. To be completed next April, the project will include the installation of Ericsson's state-of-the-art Mobile Switch Centers (MSCs) in 13 of the province's 19 cities, giving a total subscriber capacity of 620,000. "We are very pleased to have been chosen again by the Sichuan Post and Telecommunications Administration for this GSM Phase Six Project contract in the province," said Jim Gill, Executive Vice President for Ericsson China and General Manager Region Central. "The deal proves Ericsson again to be a very capable and reliable partner in telecommunications development. Ericsson's success there is also a reflection of Sichuan's great progress in the telecommunications field," Mr. Gill added. With a population of more than 80 million, Sichuan is one of the largest provinces in China while its capital city Chengdu is considered the hub of Southwest China. When Sichuan started its mobile services back in 1990, there were only 64 channels (TACS) in one single base station supporting 1,200 users at Chengdu. Upon execution of this contract, there will be almost 1,000 Ericsson GSM base stations, capable of supplying services for more than 600,000 users. Sichuan Province originally started its GSM network with other suppliers' equipment. But in early 1997, Ericsson made a breakthrough to replace those systems in 14 of the 19 cities. So far, Ericsson has established six MSCs in these areas and nine more will be added with the present contract. "We will provide faster delivery as well as better after-sales services. Ericsson will also help foster a new group of telecommunications personnel for the province, in addition to delivering the Operation and Support System (OSS) and Ericsson Engineering Tool (EET) service systems," Mr. Gill explained. The first delivery of equipment will start by late October and the whole project is expected to be completed by next April as part of the countrywide GSM expansion program. China is Ericsson's largest market globally. Ericsson China has more than 3,500 employees, 23 offices in different parts of the country and 8 joint ventures that provide a full range of communications solutions and services. Ericsson´s 100,000 employees are active in more than 130 countries. Their combined expertise in fixed and mobile networks, mobile phones and infocom systems makes Ericsson a world-leading supplier in telecommunications. FOR FURTHER INFORMATION, PLEASE CONTACT Jim Gill, Executive Vice President Ericsson (China) Co. Ltd. Phone: +86 28 667 0786 Mark Tian, Press Relations Officer Ericsson (China) Co. Ltd. Phone: +86 10 646 32288 Eric Österberg, Communications Director Ericsson Radio Systems AB Phone: +46 8 757 2159