Ericsson strengthens position in China; Signs agreement for AXE public switching equipment; Increases SDH transmission cooperation.STOCKHOLM, Sweden--(BUSINESS WIRE)--Sept. 5, 1995--Ericsson today signed two strategic agreements that will strengthen its position in China. A general purchasing agreement has been signed with the Chinese Ministry of Post and Telecommunications (MPT MPT Maryland Public Television MPT Modern Portfolio Theory (investing) MPT Ministry of Posts and Telecommunications MPT Message-Passing Toolkit MPT Master of Physical Therapy MPT Mitochondrial Permeability Transition ), covering further deliveries of AXE public switching equipment. Deliveries of 2.6 million AXE lines will be made during 1996 and 1997. Ericsson has also signed a Memorandum of Understanding A Memorandum of Understanding (MoU) is a legal document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action and may not imply a legal commitment. with MPT, regarding enhanced cooperation within the SDH (Synchronous Digital Hierarchy) The European counterpart to SONET. See SONET. SDH - Synchronous Digital Hierarchy (Synchronous Digital Hierarchy (communications, standard) Synchronous Digital Hierarchy - (SDH) An international digital telecommunications network hierarchy which standardises transmission around the bit rate of 51.84 megabits per second, which is also called STS-1. ) transmission area on the Chinese market. Within the general purchasing agreement Ericsson will deliver AXE equipment to extend the public telecommunications network in several provinces in China. Ericsson has already shipped over 9 million lines of AXE to China. Ericsson's local company, Nanjing Ericsson Communication Ltd, will manufacture and deliver the AXE equipment, strengthening Ericsson's local presence in key provinces. "We consider this AXE agreement an important base for our objective to further increase volume, market share and production capacity in China," Ericsson's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Dr. Lars Ramqvist says. Ericsson's Memorandum of Understanding with MPT in the SDH transmission area is a strategic enhancement to the recently signed cooperation and licensee agreements with Wuhan Research Institute (WRI WRI Wolfram Research, Inc. (makers of Mathematica) WRI World Resources Institute WRI War Resisters' International WRI Western Research Institute (Laramie, WY) WRI Water Research Institute ). According to these agreements, WRI will design, market, and distribute Ericsson's SDH-products to the fast evolving Chinese SDH market. This MOU (Minutes Of Usage) A metric used to compute billing and/or statistics for telephone calls or other network use. will further promote and enhance the SDH cooperation of both sides in the transfer of technology, localized production in the joint venture, etc. WRI has advanced research and development facilities and production of fiber-optic and transmission equipment in the city of Wuhan. With 1,600 employees, WRI is one of the major transmission equipment suppliers on the Chinese market. WRI is owned by the MPT and is also their research and development body within the optical communication area. Today, China is Ericsson's fifth largest market, with 7 per cent of the total net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight . Ericsson has nearly 2,000 employees in China, local offices in different parts of the country, six joint-ventures and manufacturing within public, private and mobile telecommunications. Ericsson's 80,000 employees are active in more than 100 countries. Their combined expertise in switching, radio and networking makes Ericsson a world leader in telecommunications. CONTACT: Ericsson Kathy Egan Lars Jonsteg 212/685-4030 |
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