Ericsson (News - Alert) may be on a roll in Asia as of late, but competitor Nokia (News - Alert) is not giving up its vantage position in China just yet. The Finnish mobile phone maker has announced that it has bagged a $63 million GSM contract from Yunnan Mobile Communication Co., Ltd. (Yunnan MCC).

 

Under the agreement, Nokia will supply Yunnan MCC with GSM/GPRS radio and core networks, including the Nokia MetroSite base stations, Nokia MSC Server mobile softswitch and Nokia Media Gateway (News - Alert) in southwest China's Yunnan province.

 

 The network will start functioning from November.

 

According to a Nokia statement, the company will also provide services including network planning, implementation and other support services.

 

Nokia claimed that with its MSC Server mobile softswitch, Yunnan MCC will be able to provide its customers new services, such as Multi-SIM service, which will enable Yunnan MCC "to generate more revenue and improve its customer retention."

 

James Lin, vice president, Networks, Nokia China said: "This year marks the 10-year anniversary of strategic cooperation between Nokia and Yunnan MCC. We are delighted that Nokia solutions have in part enabled the new milestone of 10 million mobile users in the province. We are committed to supporting the operators to explore the potential of GSM networks, generate more revenues and bring new exciting services to the mobile users."

 

Lin Zhenhui, general manager of Yunnan MCC added; "Yunnan MCC is committed to building a high-quality GSM network to extend mobile services to more people in the province. Thanks to Nokia's innovative end-to-end solutions, we are able to improve the coverage in the rural area significantly, bring higher capacity to the network, and new services to our customers."

 

In July, Nokia signed a $150 million contract with Henan Mobile Communications Company to expand GSM and GPRS networks in Henan province. The proposed expansion is meant to significantly increase network coverage and capacity for mobile phones in the province's rural areas.

 

Nokia's NetAct network and service management system will be deployed in Henan. Under the contract, Nokia will also provide network planning, implementation, commissioning, training and care services.

 

The network is expected to be operational by the end of the month.

 

Since 2005, China is Nokia's biggest market. To beef up its presence in China, Nokia has announced the setting up of its new $63 million headquarters in the country.

 

China is the world's largest mobile market, with over 400 million subscribers and about 100 million mobile phones sold in the past year.

 

Nokia has had its share of problems in China. In July the company sued two local firms for illegal product copying. Nokia has asked a Beijing court to stop Song Xun Da Zhong Ke Electronic Shenzhen and Shenzhen Telsda Mobile Communication Industry Development Co. from manufacturing and marketing its 7260 model mobile phone.

 

The suit against the two Chinese firms also sought $62,000 (500,000 yuan) in damages. Nokia has also named the Chinese distributors of the phone model as co-defendents in the case. The distributors named are Beijing Tongwanbao Commerce & Trade Co. Ltd. and Beijing Xin Tongwanbao Commerce & Trade Co. Ltd.

 

The lawsuit is Nokia's first in China. It now joins the growing list of multinationals such as Wal-Mart, Starbucks and Intel (News - Alert) that have filed trademark lawsuits in China.

 

Nokia said the lawsuit was part of the firm's continuous efforts to protect its brand value and proprietary designs.