Telefónica Móviles has selected Ericsson as main supplier for the initial roll out phase of its UMTS network in Spain and Germany. The value of the global contract is estimated at about 400 million euros. In Spain, Ericsson will deploy more than 700 base stations, making the Telefonica Moviles UMTS roll out there one of the largest in the world. The contract covers a three-year period.

Ericsson is sole supplier for the UMTS launch in Spain. Initial deployment and commissioning of the network is due by June 1, 2002. The operator's full commercial launch will depend on several factors, including volume availability of terminals.

In Germany, Ericsson as main supplier will provide a turn-key project including acquisition, installation and commissioning. Telefónica Móviles operates in Germany under the Quam trademark. Quam is 57,2 percent owned by Telefónica Móviles and 42,8 percent by Sonera.

The contract further confirms Ericsson's position as key supplier of the Telefonica Group as well as its position as leading supplier of wireless networks in Spain, Germany and in the world. Ericsson has an approximately 40% market share in both GSM and in WCDMA globally.

"This contract represents the beginning of what will be the Telefónica Móviles' 3G network in Spain and Germany. As such, it has a high strategic value for Ericsson because of the customer's international dimension," said Eduardo Restuccia, executive director of Ericsson's Global Customer Unit for Telefónica. "The deal further confirms the confidence that Telefónica Moviles has in Ericsson's 3G solutions."