Ericsson will also help to expand Telesur's core system while supporting the operator to deliver new services more economically over its current network.

The contract is one of the first of its kind in northern South America and promises to provide advanced solutions to neighboring countries that do not yet have a wide choice of skilled vendors operating locally.

Ericsson and Cisco Systems have a strategic alliance agreement to offer joint solutions for the wireline communications market. Ericsson has the overall integrator lead in the alliance.

Ericsson's Partner Liaison Officer Anders Nyquist says: "The deal was won mainly on the strength of the Ericsson-Cisco partnership. It proves that the two companies, working together, can provide very advanced solutions in countries that don't have sophisticated infrastructure.

"What we are providing is a completely tested and verified solution - something that is of crucial value in countries such as Surinam, where the infrastructure available to conduct tests in is very limited."

Nyquist says this deal also proves that, contrary to conventional wisdom, developing countries are not prepared to go in for "proven solutions, that have been tested and abandoned by the West," but are interested in solutions created for their specific context and use.

It is believed that the alliance, and Ericsson's readiness to deploy and integrate next-generation networks in new and challenging infrastructure settings, will pave the way for similar contracts with other players in the region.

The IP network is being deployed now.