Swedish telecom equipment maker Telefon AB L.M. Ericsson said Monday it had clinched a US$805 million contract from Guangdong Mobile Communications Corp. Ltd. to expand its GSM network in the southern province.

Ericsson said it would provide the infrastructure and equipment, including hardware and software, for expansion of the mobile operator's GSM network.

Delivery of equipment had started early this year and the implementation of the contract would be completed by the end of March 2005, the Swedish company said.

Guangdong Mobile, a unit of the country's largest mobile operator, China Mobile Communications Corp., will be able to reach about 54 million GSM subscribers once the expansion is completed.

It was Ericsson's second large deal in China in less than a week.

Last Friday, the company said it had won an order from China's top fixed-line operator China Telecom Corp. for a backbone network as well as support and training services.

Ericsson did not disclose any financial details about the deal, but said the network was expected to start operating by the end of 2005.

Source: Shenzhen Daily-Agencies