The deal is to expand extant GSM mobile infrastructure in seven provinces and the municipality of Chongqing.

Five out of the seven provinces’ networks are owned by China Unicom Group, with plans to purchase the remaining 18 networks from the company’s parent in the near future.

This deal is another indication of the hungry market that exists in China which has provide billions of dollars of business for mobile companies struggling in their own domestic markets.

Nortel’s China president and chief executive Robert Mao commented in a press statement: (China) has to be a growing share of everybody’s business, because all markets are turning soft and China is still going strong and expanding.

Mr Mao also stated that in the second half, we expect more deals form both Unicom and China Mobile.

The total of business between Nortel and China now amounts to $843.3 million worth of wireless equipment contracts.