Ericsson plans to invest $1 billion in China over the next five years in order to raise its production, R&D and service capacity in the country. The Chinese market continues to offer significant opportunities for growth, especially in the 10 provinces in China where mobile phone penetration rates are lower than 20 per cent.
Although many service providers will shift their investments to 3G network construction, Ericsson intends to continue its investment in GSM networks. It has also signed an agreement with ZTE to provide TD-SCDMA solutions in China, having erected new TDSCDMA R&D centres in Guangzhou, Nanjing and Qingdao.
