Under a framework agreement signed in Helsinki, Finland, Nokia will supply China Mobile Communications Corporation GSM/GPRS radio and core network equipment worth of 5.8 billion yuan (US$728 million) for network expansion, Nokia said on its website.

Also on Tuesday, Nokia signed a memorandum of cooperation with China Postel Mobile Communication Equipment Co., Ltd. (China Postel), China's largest mobile phone distributor, for the supply of 15 billion yuan (US$1.88 billion) worth of mobile terminals.

"The signing of these two important agreements is a milestone event for Nokia's operations in China," said Nokia chief executive officer Olli-Pekka Kallasvuo.

"We set up our operations more than 20 years ago with a handful of employees and today we employ over 6,700 people in China. It is the single biggest market for Nokia, as well as one of the largest contributors to Nokia's research and development, manufacturing and innovations," he said.

Nokia's operations in China include two mobile phone manufacturing facilities, two network manufacturing facilities, and six research and development units focusing on both the Chinese and global markets.

On September 1, Nokia announced that it would expand its recently established 3G research and development center in Chengdu, capital of Sichuan Province in southwest China.

Tan Xinhui, the president of China Postel, said: "Competition in the Chinese mobile industry is intensifying all the time. We have been pursuing new ways of working with mobile phone manufacturers in order to bring consumers more complete communication solutions. This is a new milestone for us and a benchmark for both of our companies."

(Xinhua News Agency September 13, 2006)