The FINANCIAL — China Mobile Hebei, a provincial company of China Mobile, has selected Ericsson (NASDAQ: ERIC) as a sole managed services partner for all its 22,000 2G/3G (GSM/TD-SCDMA) base station sites through a three-year field maintenance agreement.
The Hebei province has a population of 70 million and its area is almost the size of the UK.
Ericsson has already begun providing the service for what is the largest managed services contract the company has received in China so far. China Mobile Hebei is the largest operator in the province with 35 million subscribers.
According to Ericsson, the agreement allows China Mobile Hebei to improve its network quality and operational efficiency, and further increase its focus on its core business, the subscribers, while Ericsson takes full responsibility for the field maintenance work of all the base station sites.
The cooperation between China Mobile Hebei and Ericsson has also gained support from the Government of Hebei Province, which has expressed its hope that Ericsson will make the best use of this opportunity and set a benchmark for field maintenance services in China as well as a base in northern China.
Li Liangui, General Manager of China Mobile Hebei, says: "We have always acted upon China Mobile's core value proposition – Responsibility Makes Perfection – and are fully committed to achieving win-win situations with our strategic partners to pay back society the best we can. This cooperation will be a significant move to benefit not only Ericsson and China Mobile Hebei, but also the Hebei Province."
Mats H Olsson, President of Ericsson China & North East Asia, says: "This shows China Mobile Hebei's trust in Ericsson's industry leading managed services capabilities and its willingness to be a strategic partner with Ericsson in China. We are confident of providing the best-in-class services to China Mobile Hebei and to help it capture new opportunities in this challenging and competitive marketplace."
China Mobile Hebei, China Mobile's subsidiary in the country's sixth most populated province, is one of Ericsson's most important customers and strategic partners. The two parties have had a good long-term partnership for more than 23 years.