August 28, 2008, 09:00 (CEST)
Ericsson (NASDAQ:ERIC) is to supply, build, integrate operate and manage multiplay communications infrastructure for Saudi Arabia's high-tech flagship, King Abdullah Economic City. The five-year sole-supplier partnership agreement with Emaar, developer of the smart-city project, is the first for an end-to-end fixed network in Saudi Arabia.
This turnkey agreement award breaks new ground in Saudi Arabia as Ericsson's first GPON- enabled IPTV contract, the first fiber optic contract and the first fixed-network IMS contract where Ericsson provides systems integration and network rollout services. The contract brings together products from Ericsson's major acquisitions - Entrisphere, Marconi, Redback and TANDBERG Television - and the company's telecom services portfolio.
The network will provide innovative services - using latest GPON fiber-to-the home technology, enabling advanced multimedia services for TV, PC and telephones. Services such as IP telephony, movies-on-demand, personalized TV, Super fast Internet and data services are being provided at competitive prices for King Abdullah Economic City's 2 million residents.
Fahd Al-Rasheed, CEO of Emaar the Economic City, says: "This partnership sets the foundation for King Abdullah Economic City to be the world's first truly smart city."
Omar Al-Khudairi, Ethraa Smart City Senior Director, described the deal to build the smart city's infrastructure in alliance with Ericsson as a global benchmark from all perspectives.
Jan Kemvall, President, Ericsson Saudi Arabia, says: "It is a great privilege to be a partner with Emaar in building King Abdullah Economic city. There are many opportunities to add value because we will deliver and operate the communication infrastructure across the city."
Notes to editors:
For more information and images of King Abdullah Economic City, visit:
Ericsson is the world's leading provider of technology and services to telecom operators. The market leader in 2G and 3G mobile technologies, Ericsson supplies communications services and manages networks that serve more than 195 million subscribers. The company's portfolio comprises mobile and fixed network infrastructure and broadband and multimedia solutions for operators, enterprises and developers. The Sony Ericsson joint venture provides consumers with feature-rich personal mobile devices.
Ericsson is advancing its vision of 'communication for all' through innovation, technology, and sustainable business solutions. Working in 175 countries, more than 70,000 employees generated revenue of USD 27.9 billion (SEK 188 billion) in 2007. Founded in 1876 and headquartered in Stockholm, Sweden, Ericsson is listed on OMX Nordic Exchange Stockholm and NASDAQ.
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About Emaar, The Economic City:
Emaar, The Economic City (Emaar.E.C), established in September 2006, is a Saudi joint stock company managed by Emaar Properties PJSC, one of the world's largest property developers, and a number of high profile investors from Saudi Arabia. Emaar.E.C has a share capital of SR8.5 billion consisting of 850 million shares of nominal value SR10 each. Thirty per cent of the equity, worth SR2.55 billion, was offered for public subscription.
Emaar.E.C leads the master-planning and development of the 168 million sq m King Abdullah Economic City (KAEC), a project being built on a pristine location off the Red Sea in the north of Jeddah. SAGIA (Saudi Arabian General Investment Authority), the body responsible for inward investments into the Kingdom, is the prime facilitator for KAEC.
KAEC, a New Age City being built today for tomorrow's generation of Saudi citizens, has six components - sea port, industrial district, educational zone, central business district with commercial, mixed-use, retail outlets and financial island, resorts and residential area.
The mega-project works closely with the Kingdom's on-going drive to expand the economy, create employment opportunities for its youthful population and function as a catalyst to attract foreign investment, global trade, commerce and industry. Based on initial forecasts, the project and its several components will create up to one million employment opportunities in the various industries and service-oriented companies that will open in KAEC. It will also be home to 2 million residents (3.2 in the greater area).