Ericsson today signed a GSM expansion framework agreement with China Mobile, valued at about USD 1 billion, at a ceremony in Sweden attended by Chinese President Hu Jintao.

Under the new framework agreement, Ericsson will supply core and radio network equipment, along with related technical support and services, to expand China Mobile's GSM coverage in 19 regions of China. 

The expansion project, which strengthens Ericsson's position as the leading mobile communications supplier in the Chinese market, will allow China Mobile to boost network capacity and performance, creating new revenue streams from enriched data services and offering an enhanced user experience to hundreds of millions of its subscribers. Deliveries have already started.