China Mobile Communications Corporation seems to be working hard at improving coverage for the country. Last week the company had announced that they are planning to expand its TD-SCDMA 3G trials to more cities. Today China Mobile signed many contracts with Motorola for its GSM network upgrades and expansion. The expansion is being quite profitable as the company recognized 50% of the revenue from the contracts signed in the first half of 2008.

Motorola will supply CMCC with GSM network equipment and a range of services. The expanded and optimized GSM networks will then be deployed across 16 provinces and municipalities within the coverage area of CMCC, namely Beijing, Tianjin, Sichuan, Zhejiang, Henan, Hunan, Guangdong, Yunnan, Fujian, Hubei, Shanxi, Jilin, Liaoning, Jiangxi, Anhui and Guizhou. These contracts also enable China Mobile to deliver enhanced and value-added multimedia functionality and services.

China Mobile has already invested US$2 billion on its 3G trial network, which is currently trialling in eight cities: Beijing, Shanghai, Tianjin, Shenyang, Guangzhou, Shenzhen, Xiamen and Qinhuangdao.

Press release  after the jump.

Source: Motorola, Cellular News, South China Morning Post

Motorola, Inc. (NYSE: MOT) announced today it has signed multiple contracts worth US $431m with China Mobile Communications Corporation (CMCC) for its GSM network upgrades and expansion. The contracts were signed in the first half of 2008 and reflect Motorola’s position as a global leader in GSM network solutions. Approximately 50% of the revenue from these contracts was recognized in the first half of 2008.

Following the US $394m contracts over the same period of last year, these multiple contracts mark another milestone of the cooperation between China Mobile and Motorola. The cooperation will enable China Mobile to expand its network coverage and manage its GSM network even more effectively; allowing the company to maximize its investment returns and to provide subscribers with enhanced services.

Under these agreements, Motorola will supply CMCC with GSM network equipment and a range of services. The expanded and optimized GSM networks will then be deployed across 16 provinces and municipalities within the coverage area of CMCC, namely Beijing, Tianjin, Sichuan, Zhejiang, Henan, Hunan, Guangdong, Yunnan, Fujian, Hubei, Shanxi, Jilin, Liaoning, Jiangxi, Anhui and Guizhou. These contracts also enable China Mobile to deliver enhanced and value-added multimedia functionality and services.

Motorola has won a number of significant GSM network expansion contracts over the past few years. Motorola’s GSM is attractive for service providers in both new and mature markets. Some of the recent major contract wins include expansion contracts with VNPT Group in Viet Nam, Mobily in Saudi Arabia, and Celtel Nigeria in Nigeria. Besides, Motorola won a turnkey contract in March to deploy and manage GSM network for Zain in Saudi Arabia.

Ruey-Bin Kao, President of Motorola China, said: “Motorola has worked with China Mobile for over 20 years. As a long-term strategic partner of China Mobile, we continue to provide China Mobile with a state-of-the-art GSM network that extends its network coverage, maximizes investment and delivers the most attractive communication experience to its customers.”

As the Chinese telecom industry is going through industry-wide restructuring, China’s telecom operators are undergoing one of the most critical changes in history. “No matter in what direction China Mobile moves forward after the restructuring, Motorola is well-placed to provide the best migration path for both the wireless network and the core network of China Mobile,” Ruey-Bin Kao continued: “Motorola would be proud to be a part of the industry growth story. As China Mobile strives to build the best-in-class future network, Motorola will make every effort to maintain and develop the long-term strategic relationship with China Mobile, doing everything we can to make our own contribution to the growth and expansion of China Mobile.”

China Mobile has been playing a leading role in the development of the mobile communications industry in China and holds an important position in the international arena as well. China Mobile has the largest mobile network and subscriber base around the world. As of 31st May 2008, China Mobile has more than 400 million wireless subscribers on its nationwide network.