Ericsson (NASDAQ:ERIC) has been chosen by Axis, Indonesia's newest GSM/3G operator, as a key partner for the next phase of the operator's national network rollout program. The agreement, which includes network operation and technical support, will allow Axis to provide improved services and greater coverage to its subscribers while reducing operating expenses.
With this turnkey agreement Ericsson will be responsible for the deployment of a GSM/EDGE and WCDMA radio access network, including about 2100 sites in Greater Jakarta, Banten and Sumatra. Ericsson will also supply its mobile backhaul solution with optical and microwave products.
The contract also includes a three-year managed services agreement to provide technical support and network operation, including field operations and support services. This will allow Axis to focus on its core business and cost effectively streamline network management and operations.
Erik Aas, President and CEO of Axis, says: "Ericsson has been a key strategic partner since the launch of our operations and we are pleased to continue this relationship into Axis' next growth phase. Having Ericsson as our managed services partner will help us boost competitiveness, improve cost efficiencies and achieve our ambition of bringing high-quality communications services to our subscribers."
Bengt Thornberg, President of Ericsson Indonesia, says: "Axis' decision to strengthen our partnership is of great importance to Ericsson Indonesia, as it is not only a continuation of our existing business, but also a footprint expansion into one of the fastest growing regions of Indonesia. It is a clear proof of Ericsson being the market leader in Indonesia, by our strong local presence, as well as our industry leadership in both services and technology. We are committed to support Axis' expansion plans and their operations in order to make Axis successful in this rapidly evolving and growing market."
Axis has deployed more than 2000 radio base stations and attracted more than two million customers since its launch in 2008. With even more regional launches scheduled, national coverage is expected in 2009. By the end of 2010 Axis expects to have deployed more than 8000 sites.
Indonesia has a population of about 240 million. In the first half of 2008, Indonesia had less than 50 percent penetration and is one of Ericsson's fastest growing markets worldwide.
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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.
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Axis was launched in February this year and as a result of an aggressive national network rollout is available already in East Java, West Java, Jabodetabek, Banten, Central Java, Bali, Lombok, Medan, the Riau Islands and the Riau mainland. With up to 80 base stations being built every week, Axis will achieve national coverage by 2009 - in only its second year of operation. Axis has allocated a USD 1 billion investment by the end of 2008 to provide a quality network for its customers. Axis is owned by Saudi Telecom Company (STC), the number one GSM operator in Saudi Arabia, and Maxis Communications, the number one GSM operator in Malaysia. Together these companies serve more than 45 million customers with operations in nine countries. Detailed information about Axis is available at: www.axisworld.co.id
About Ericsson's Managed Services offering
Ericsson has the telecom industry's most comprehensive managed services offering. It ranges from designing, building, operating and managing day-to-day operations of a customer's network, including end-user services and business-support systems, to hosting service applications and content, as well as providing network coverage and capacity on demand. As the undisputed leader in managed services, Ericsson has officially announced more than 100 contracts for managed services with operators worldwide since 2002. In all current managed services contracts, excluding hosting, Ericsson is managing networks that together serve more than 225 million subscribers worldwide.