Ericsson said the contract is worth $29 million.
Heilongjiang Mobile has almost 4.5 million subscribers in the Chinese province of Heilongjiang. With the expansion, its GSM (Global System for Mobile Communications) network will be able to support 6.65 million subscribers, while the GPRS (General Packet Radio Service) network will carry 200,000 subscribers, up from the present 60,000.
China is the, with 240 million mobile phone subscribers.
Separately, Ericsson announced that it will incorporate Proxim's Wi-Fi gear into the products it will deliver to China Mobile. This will help China Mobile launch Wi-Fi "hot spots"--public places that give people wireless access--in more than 10 Chinese cities and provinces, including Beijing.
Sunnyvale, Calif.-based Proxim said Digital China, a distributor of information technology products in China, will provide maintenance services and technical support for its products.
Proxim and Ericsson are jointly developing software and subscriber identification module (SIM) technology for public hot spot access, the companies said in a statement. This will allow consumers to gain secure access to a public hot spot via mobile phone SIM cards.