Ericsson scores $1B deal with China Mobile

China Mobile is gearing up for a major network expansion and its enlisted the help of Ericsson. The two inked a $1 billion contract in which Ericsson will provide core GSM network equipment to the operator, which boasts over 321.3 million subscribers.

China Mobile plans to expand its existing GSM coverage in 19 regions of China and boost its coverage in rural areas. The rural coverage will be key as China Mobile faces increasing competition from China Netcom.

In another deal, China Mobile signed a $600 million agreement with Sony Ericsson for handsets. Sony Ericsson, of course, is the joint venture between Japan's Sony and Sweden's Ericsson. 

For more information: 
- read this Forbes article