L.M. Ericsson Telephone (ERIC.NASDAQ) has signed a US$1.8 billion contract to provide network equipment to China Mobile (CHL.NYSE, 0941.HK) and China Unicom (CHU.NYSE, 0762.HK), the Wall Street Journal reported. The US$1 billion contract with China Mobile will allow the largest Chinese carrier by user base to develop an Internet Protocol (IP) network using Ericsson’s radio access equipment. The US$800 million China Unicom deal will enable the second-largest Chinese carrier to provide faster 3G service using HSPA Evolution technology. With a penetration rate of 56.3%, Ericsson also stated that it saw continued growth potential in the Chinese mobile market, its second-largest after the United States.
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