Nokia (NOK) has signed a GSM expansion contract with Yunnan Mobile.

Under the agreement, Nokia supplies Yunnan Mobile with GSM/GPRS radio and core network, including the Nokia MetroSite base stations, Nokia MSC Server mobile softswitch and Nokia Media Gateway in the Yunnan Province in the Southwest China. Nokia will also provide services including network planning, implementation and other support services. Deliveries have started and the network will be operational in November.

The contract, valued at approximately US$63 million, further strengthens Nokia's leading position in GSM networks and mobile softswitch systems deployment in the China area.

With the Nokia MSC Server mobile softswitch, Yunnan Mobile will be able to provide its customers new services, such as Multi-SIM service, which will help Yunnan Mobile to generate more revenue and improve its customer retention.

"Yunnan Mobile is committed to building a high-quality GSM network to extend mobile services to more people in the province. Thanks to Nokia's innovative end-to-end solutions, we are able to improve the coverage in the rural area significantly, bring higher capacity to the network, and new services to our customers," says Lin Zhenhui, General Manager of Yunnan Mobile.

Nokia leads the 3GPP compliant mobile softswitch market in China and is a leading GSM network supplier in the Chinese market with over 20 provincial customers and 20 million lines already put into operation.