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Newsletter: Q3 2003

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China's Guangdong Mobile awards Ericsson USD600 million frame agreement

Under a USD600 million frame agreement, Ericsson will expand the GSM network of Guangdong Mobile Communication Corporation in China. Scheduled for completion in 2004, the project will raise the capacity of Guangdong Mobile's GSM network to 36 million subscribers. Ericsson has co-operated with Guangdong Mobile since 1987. The frame agreement not only bolsters this long-term partnership, it also reinforces Ericsson's strong position in China, a strategically important market for the company.
http://www.ericsson.com/press/20030820-123917.html

Ericsson to provide CDMA2000 1X network in India under USD150 million contract

Ericsson will deploy its end-to-end CDMA2000 1X network solution for India's TATA Teleservices Limited (TTSL) under a contract valued at approximately USD150 million. In addition to rolling out its CDMA2000 1X network in Tamil Nadu and Karnataka states, Ericsson will provide core network equipment in other regions served by TTSL. Deployment is under way and the network is expected to enter service in early 2004. The contract with TTSL further strengthens Ericsson's leading position in this market, having signed contracts with 15 CDMA operators worldwide over the past year.
http://www.ericsson.com/press/20031020-102320.html

Amena signs managed services agreement with Ericsson

Spanish mobile service provider, Amena, has awarded Ericsson a six-year contract for the outsourcing of field maintenance services for its GSM network. The services will be delivered by Newtelco Services, S.A., a company in which Ericsson has a majority interest.
http://www.ericsson.com/press/20031105-114309.html

Ericsson holds Capital Markets Day for investment community

Carl-Henric Svanberg welcomed more than 200 investors, financial analysts and media to Stockholm for a series of briefings on Ericsson's market position and strategic direction for the future. More information is available at http://www.ericsson.com/investors/ievents.shtml

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Industry Viewpoint

The 'Industry Viewpoint' section offers a view from Ericsson on emergent technologies, new products and industry trends. This time, we look at why EDGE (Enhanced Data rates for Global Evolution) should feature strongly in GSM operators' network evolution plans - whether or not they are rolling out 3G mobile networks based on WCDMA (Wideband Code Division Multiple Access).

How EDGE optimizes the 3G business case

GSM operators around the world are showing an increased interest in deploying EDGE as a complement to WCDMA networks. The ability of EDGE to optimize the business case for 3G roll-out is being more widely recognized, and acted upon - especially as operators need to offer higher data rates to users while protecting their valuable voice business.
Although the Americas initially led the way with EDGE, the powerful economic arguments for EDGE mean that an increasing number of operators in other parts of the world are deploying the technology as a means to boost the speed and capacity of GSM/GPRS, and as a complement to WCDMA.
GPRS booster
EDGE immediately helps operators to maximize their return on investment in GPRS, as it can be added to an existing GSM/GPRS network quickly, easily and comparatively cost-effectively.
EDGE is a radio modulation technique for GSM/GPRS that raises user data rates and increases capacity within existing spectrum, using existing infrastructure for the most part. It does this by introducing a new modulation scheme and enhancing the protocol that handles the packet data flow between the mobile handset and Base Station Controller (BSC), tripling GPRS user data rates.
In effect, EDGE 'turbocharges' GPRS, so that it can deliver high-quality, content-rich mobile multimedia services - including video clips, multimedia messaging (digital postcards with video attachments, for example), and interactive online games - to large-screen mobile devices.
By offering higher data rates per timeslot than GSM/GPRS alone, EDGE is also spectrum-efficient. This means that EDGE can be used to serve up to three times the number of datacom subscribers as would be possible with GPRS alone, or to free up capacity for still-expanding voice traffic.
Fast track to 3G coverage
Another benefit of EDGE is that it offers a low-risk, low-cost 3G evolution route for GSM/GPRS networks, enabling initial 3G services over a wide area. EDGE and WCMDA will co-exist quite naturally. For example, EDGE could be used by operators planning to roll out WCDMA coverage to ensure widespread availability of 3G services from day one. In this 'hybrid' scenario, operators can roll out WCDMA in densely populated areas such as cities and traffic hot-spots, and use EDGE as a complement to cover areas where there is less demand.
Once network-wide EDGE/WCDMA 3G coverage is in place, deployment of WCDMA can proceed in line with market demand, enabling the operator to control new network investment, manage cash-flow better, and make the best use of resources and expertise.
EDGE has definitely come to the center of the mobile stage, with a variety of operators now attracted by its impressive list of benefits.

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Mobile Networks News

Ericsson continues to call the shots in 3G infrastructure market

The past quarter saw Ericsson build on its dominant position as a supplier of 3G infrastructure solutions.
Ericsson is delivering core and radio network equipment and supporting services for the roll-out of Greek service provider Cosmote's WCDMA network. The company is also supplying Vodafone Greece with UMTS core network technology, along with engineering and consultancy services.
http://www.ericsson.com/press/20030723-124152.html and
http://www.ericsson.com/press/20030818-110139.html.
Kazakhstan's Altel contracted Ericsson to deploy a nationwide CDMA2000 1X wireless network.
http://www.ericsson.com/press/20030829-1140.html

In the Americas, Rural Cellular Corporation (RCC) selected Ericsson to provide CDMA2000 1X and GSM/GPRS core and radio access infrastructure, and Ecuadorian operator Telecsa is deploying Ericsson's CDMA2000 1X EV-DO (Evolution Data Only) solution.
http://www.ericsson.com/press/20030819-151731.html and
http://www.ericsson.com/press/20030916-172346.html
In addition to these customer wins, the company introduced its new CDMA2000 1X omni cell radio base station (RBS) 1140, the latest addition to its industry-leading CDMA2000 radio access network product portfolio.
http://www.ericsson.com/press/20030922-183639.html

Building on its industry-leading position in next-generation mobile infrastructure, Ericsson also added three new EDGE contracts, with Lithuanian operator Bite GSM, Cincinnati Bell in the USA, and AIS in Bangkok, Thailand. http://www.ericsson.com/press/20031009-092107.html
http://www.ericsson.com/press/20030813-150532.html and
http://www.ericsson.com/press/20031006-131551.html

GPRS rolls on

Ericsson also built on its leading GPRS market share, with the signing of four new contracts in the past quarter.

In China, Ericsson will increase the capacity of Heilongjiang Mobile Communications Company's GPRS network from 60,000 to 200,000 subscribers. Ericsson is also expanding Guangdong Mobile's GPRS network, which will reach 1.88 million subscribers by early 2004.
http://www.ericsson.com/press/20030908-094700.html
http://www.ericsson.com/press/20030812-110102.html
Gibtelecom has contracted Ericsson to supply its entire GPRS network, opening up a new era in telecommunications connectivity on the Rock of Gibraltar. Deployment is already under way and services are expected to become available before the end of 2003.
http://www.ericsson.com/press/20030724-133936.html

The largest mobile operator in Bangladesh, GrameenPhone, has signed a frame agreement with Ericsson for the expansion of its GSM network and the delivery of GPRS solutions.
http://www.ericsson.com/press/20030819-165726.html

The quarter also saw Ericsson affirm its leadership in GRPS technology by successfully demonstrating IPv6 services over a commercial GPRS network in an international roaming scenario. The demonstration, in partnership with TeliaSonera, showed that IPv6 services can be supported in commercial mobile infrastructure, even when roaming, using automated IP tunneling.
http://www.ericsson.com/press/20030923-090915.html

Ericsson pre-paid reaches 100 million subscriber milestone

In September, Ericsson reached a milestone with more than 100 million subscribers now being served by Ericsson pre-paid systems, 30 per cent more than one year ago. Ericsson remains the leading supplier in this field and continues to grow above the market average.
http://www.ericsson.com/press/20030925-143555.html

New Push-to-talk specification published

Along with other mobile industry leaders, Ericsson has announced the completion of a jointly developed Push-to-talk over Cellular (PoC) specification based on the IP Multimedia Subsystem (IMS), as defined by 3GPP. This specification is intended to reduce marketplace fragmentation and provide end users with easy-to-use push-to-talk services at home and when traveling.
http://www.ericsson.com/press/jointspec3gpp.html

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Broadband Access News

Ericsson wins Ethernet DSL Access contract with Telstra Clear

New Zealand's TelstraClear has joined the growing number of operators that have opted for Ericsson's Ethernet DSL Access solution. Ericsson is to deploy ADSL lines that will deliver Ethernet-based, high-speed Internet and data services to TelstraClear's customers in New Zealand's metropolitan centers. Ericsson has previously supplied TelstraClear with integrated Gigabit Ethernet-based Metropolitan Area Networks.
The ultra-compact, scalable Ethernet DSL Access solution, a cornerstone of Ericsson's Public Ethernet offering, enables standard ADSL lines to be offered economically at smaller sites and uses Ethernet technology to provide high-bandwidth links in the back-haul network.
http://www.ericsson.com/press/20030903-1006.html

Russia to get its first Ethernet DSL Access network

Ericsson is to deploy the first Ethernet DSL Access network in Russia on behalf of Satel. The company's Ethernet DSL Access solution will provide broadband Internet access for customers of Satel's Infoline network in the Moscow region.
http://www.ericsson.com/press/20031104-090851.html

Golden Telecom selects Ethernet DSL Access for broadband services in Ukraine

Ukrainian operator Golden Telecom has selected Ericsson's Ethernet DSL Access solution to establish broadband service in several locations in and around the country's capital, Kiev. Golden Telecom is one of Ukraine's leading providers of integrated telecommunications services for businesses and other high-usage customers, as well as operators. Ericsson will provide Golden Telecom with ADSL lines to deliver high-speed Internet access as well as standard voice and Voice over IP (VoIP) services.
http://www.ericsson.com/press/20030923-095910.html

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Multiservice Networks News

First commercial ENGINE contract in China

Ericsson is to build a new gateway for Beijing Communication Corporation's local fixed network in the first commercial ENGINE contract ever awarded to Ericsson in China. Under the contract, Ericsson will deploy a total of four nodes supporting around 600,000 trunks, as well as providing professional services. The project - to be completed by mid-2004 - will help Beijing Communication Corporation provide high quality communication services to support the city's 'informatization' initiatives. Ericsson has been working with Beijing Communication Corporation since 1983 when the operator purchased China's first digital switch, an AXE 10, from Ericsson.
http://www.ericsson.com/press/20031009-104631.html

Euskaltel chooses Ericsson to enhance data network capacity in the Basque region

Basque operator Euskaltel is deploying Ericsson's Packet Backbone Network (PBN) solution, incorporating Juniper Networks' M40e routing platforms, to improve the performance and quality of its data transmission service in the light of rapidly growing data volumes. Ericsson's PBN provides pre-tested and verified multi-service IP networking solutions designed to enable operators to deploy profitable enterprise, broadband and full-scale telephony services in a converged IP network.
http://www.ericsson.com/press/20030721-155235.html

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Enterprise Communications News

Ericsson launches MD110 Convergence Communication System

Ericsson has launched the MD110 Convergence Communication System with a range of new features, including reliable IP networking and extended support for the company's new Dialog 4000 range of business telephones. The system gives corporate users the freedom to move between different fixed and wireless networks using their communication device of choice.
http://www.ericsson.com/news/031021_md110.shtml

BusinessPhone PBX gets new mobility and IP networking capabilities

Ericsson has introduced an enhanced version of its BusinessPhone business communications system for small and medium-sized enterprises (SMEs). BusinessPhone 6.0 offers new facilities for mobile working, IP Telephony, Unified Messaging (UM) and Computer-Telephony Integration (CTI), together with support for Ericsson's new Dialog 4000 range of business telephones.
http://www.ericsson.com/news/031021_businessphone.shtml 

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Corporate News and Information

Ericsson earnings report for quarter ending 30 September 2003

Ericsson's third quarter earnings were announced on 30 October 2003. To review Ericsson's Q3 report, please go to:
http://www.ericsson.com/investors/9month03.shtml

For Sony Ericsson's earnings report please go to:
http://www.ericsson.com/press/20031015-083209.html

Upcoming Events

Ericsson is participating in the following events:

3GSM Americas, 20-21 November 2003
http://www.ibctelecoms.com/3gsmamericas/

Bluetooth Americas, 9-11 December, November 2003
http://www.ibctelecoms.com/bluetoothamericas/

CDMA Americas, 8-10 December 2003 - Egil Gronstad, Vice President, Product Line Management will speak on the topic of "Planning ahead for CDMA2000 1xEV-DVO" (9 December, 3:10-3:40pm).

Ericsson Mobile Applications Awards, Zurich 25 November 2003 - This is the third edition of the Ericsson Mobile Applica, tions Awards. Twelve finalists are competing in four categories: Best Gaming Application, Best Entertainment Application, Best Enterprise Application and Best Information Application.

Midem04, 25-29 January 2004
http://www.midem.com/

Mobile Billing 2004, 23-24 February - Ericsson and MTN Cameroon will give a joint presentation on the advantages of convergent real-time charging. It will highlight the advantages of using an account-centric platform - typically used by pre-paid billing systems - to combat revenue leakage, improve credit control and build closer relations with subscribers (23 February, 12:30pm).

3GSM World Congress 2004, 23-26 February - Carl-Henric Svanberg, President and CEO, Ericsson, will give a key note presentation on Enabling Advanced, Universal Services (25 February, 8:40am)

Contacts & information

If you would like further information about any of the stories below or would like to arrange a background briefing, please contact
Eva Sparr, industry.analysts@ericsson.com,
Michelle French, industry.analysts@ericsson.com, (for North America) or
Pia Långström, industry.analysts@ericsson.com  (for Europe and other locations).

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