O2 Germany has confirmed that Chinese vendor Huawei Technologies has been contracted to expand its mobile network. The two have struck a deal for both the replacement of O2’s existing base stations and the construction of more than 8,000 new GSM and UMTS transceivers, with the aim of increasing network coverage to over 99% of the German population. The work is scheduled for completion by the end of 2009. No financial details were disclosed. Rumours that the two companies had entered an agreement first surfaced in January this year.