Nokia announced Thursday that it will supply wireless network equipment and software to China-based Beijing Mobile to upgrade the carrier's GSM (Global System for Mobile Communications) cell phone networks in a deal worth $100 million. The two companies have worked together since 1994. The current phase of the network expansion will help Beijing Mobile increase its potential customer base from 4 million to 10 million wireless subscribers in the Beijing metropolitan area.
China is Nokia's second-largest market in the world and presents a growth opportunity for other telecommunications companies. Ericsson, Alcatel, Motorola, Qualcomm and Nortel have signed contracts to supply wireless carriers in China with technology. Nokia, with more than 5,500 employees in China, is involved in eight joint ventures with Chinese companies.