Chinese operators Guangdong Mobile and Guangxi Mobile have selected Ericsson (ERICY) to expand their respective GSM networks.

The contracts are collectively valued at close to US$290 million.

According to the contracts, Ericsson will supply core and radio access network equipment, including both hardware and software as well as related telecom services, for the GSM network expansions of Guangdong Mobile (Guangdong Mobile Communication Corporation Limited) and Guangxi Mobile (Guangxi Mobile Communication Corporation Limited).

Once completed, the expansions will boost the network capacity of Guangdong Mobile to more than 60 million subscribers, and Guangxi Mobile to nearly 10 million. The expansions will drive new revenue opportunities with rich, advanced services to the end-users in the regions.

The contract with Guangdong Mobile also calls for the deployment of EDGE solutions from Ericsson. Currently, Ericsson's EDGE solutions have been deployed in networks covering three major cities in Guangdong Province – Guangzhou, Shenzhen and Dongguan, allowing them to launch EDGE-based commercial services to the consumers.

Ericsson has long-term cooperation with both Guangdong Mobile and Guangxi Mobile, during which Ericsson has supported the deployment and expansion of their GSM networks through different phases in the regions. Over the past years, the partnership between Ericsson and the two operators has been continuously strengthened on the basis of jointly building a world-class mobile network.