Chinese Deal Boosts Ericsson

During a time of bad economic news, a giant order from Chinese telecom companies has boosted Sweden's Ericsson.

China Mobile and China Unicom have signed a framework deal worth 1.7 billion US dollars with Ericsson. The two companies, who have over 620 million subscribers, will use Ericsson's expertise to upgrade their existing services and also work on building 3-G wireless networks.

Mats H Olsson, who is head of Ericssons China operations, says that this deal will further strengthen his company's position as the biggest supplier of telecom equipment to the Chinese market.