Following the recent signing of a US$1 billion GSM deal with China Mobile (CHL) for upgrading the GSM network of the telecom's operations in 19 Chinese provinces, mobile phone giant Ericsson (ERIC) has now signed an agreement with China Unicom (CHU) to help that telecom upgrade its GSM network in six Chinese provinces.

According to the agreement, Ericsson will provide solutions for the network deployment mobile exchange in Jilin, Henan, Jiangsu, Yunnan, Hainan and Liaoning Provinces. The project is expected to add more than four million user capacity to China Unicom.

China Unicom plans to upgrade its G network to GPRS network in 129 cities in 30 provinces across China before June 18, 2007 and upgrade all GSM network by the end of 2007.

Ericsson has not disclosed the amount of funds involved in the deal.