Nokia wins $33m Shanghai GSM contract

Mobile phone giant Nokia has landed a contract worth $33m to expand and service the Shanghai branch of China Unicom's GSM network.

The expansion will increase the capacity of the network to 3.1 million users to meet the growing demand for mobile services in China.

The agreement will see Nokia supply its radio-access network infrastructure, the Nokia NetAct(TM) network and service management system.

The Finnish giant will also provide support to China Unicom with optimisation training and care services.

Zhao Le, general manager of China Unicom's Shanghai branch, said in a statement: "We have been working with Nokia since 1994 and have been impressed by the quality of service and the future-proof technology provided by Nokia."

David Ho, senior vice president, Nokia Networks, China, said in a statement: "This contract marks a significant increase in coverage and capacity for China Unicom Shanghai branch's GSM network and further enhances our long and valued cooperation with it."

"The deal also highlights Nokia's commitment to China and underlines our position as a leading player in mobile communications in that market."

However, that commitment should not be perceived as benevolence from the Mighty Finn.

Mobile operators and tech firms in general have been falling over themselves to create a presence in China as it represents by far the most profitable opportunity for growth.

While other markets have reached saturation levels, the opening up of China has all of a sudden added new 'rungs to the ladder' which Western companies had previously never been able to imagine.