Nokia announced today it had signed network and handset deals with Chinese customers that would be worth more than €2 billion this year
The Finnish company said it had won a €580 million order to supply infrastructure equipment to China Mobile to expand its mobile network this year.
It said deliveries had already started under terms of the contract, which includes radio and core network equipment, as well as infrastructure services.
Nokia also signed a memorandum of cooperation with China Postel to boost handset sales, under terms of which the Chinese national mobile phone distributor is expected to buy about €1.5 billion of mobile handsets from Nokia in 2006.
Shares in the mobile phone gained 2.9 per cent on the announcement, but it later eased to stand 1.9 per cent higher at 15.39 euros earlier this morning, compared with a DJStoxx European technology index up 1.8 per cent.
Nokia is the largest player in the Chinese mobile phone market, with more than a quarter of all sales.
But it faces fierce competition from rivals like US-based Motorola in the race for customers in the world's largest handset market.