Ericsson to invest US$1bln in China over next 5 yrs

SHANGHAI (Reuters) - Ericsson, the world's largest telecoms equipment maker, said on Wednesday it will invest US$1 billion in China over the next five years, as it seeks to expand in the world's largest telecommunications market.

The company will use the money to expand its manufacturing facilities, invest in research and development and services, Ericsson's Greater China president Mats Olsson said in a statement issued at a company technology summit in Shanghai.

Ericsson has signed a research agreement with the Shanghai Research Centre for Wireless Communications to develop next-generation telecoms technology, it said at the summit, without elaborating.

Ericsson and other major global players, including Motorola, Nokia and Siemens are vying with each other for market share in China, which has more than 700 million fixed-line and mobile subscribers.

They expect China to award third-generation (3G) mobile licences next year, in a move that will unleash billions of dollars in spending on new telecoms equipment.

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