Ericsson to supply 3G network to Telcel in Mexico

Press release
Feb 14, 2008 11:00 (GMT +00:00)
Ericsson (NASDAQ:ERIC) has been selected by Telcel - Mexico's leading operator and a subsidiary of América Móvil - to provide a 3G network, enabling the launch of high-speed mobile broadband in major cities, including Mexico City and Monterrey.

Under the agreement, Ericsson will supply a complete 3G network, including base stations, network controllers and extensive software functionality, to upgrade part of Telcel's existing GSM/GPRS/EDGE network. The contract also covers a wide range of services such as deployment and integration, network design, tuning, optimization, consulting and support.

Ericsson's solution will boost Telcel's network capacity and enable the provision of high-speed mobile broadband based on HSPA. This will allow the operator to offer subscribers an array of high-speed mobile broadband services, such as internet, e-mailing, mobile payments, interactive games and video sharing.

Telcel stated that this rollout will cement its premier position in Mexico. By continuing their long-standing partnership with Ericsson, they are able to offer their customers an enhanced communications experience and pave the way for next-generation services.

Lars Linden, president of Ericsson Mexico, says: "This deal underlines Ericsson's leading position in the mobile broadband market. We are proud to continue our relationship with Telcel and be a partner in the ongoing development of Mexico's telecommunications sector."

Note to editors:

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 185 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 the Stockholm, London and NASDAQ stock exchanges.
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About Telcel
Telcel is the leading provider of wireless communications services in Mexico with coverage in all nine geographic regions in Mexico using both the 800 megahertz and 1900 megahertz radio spectrums in which it offers a wide array of voice and data services in TDMA, GSM/GPRS/EDGE and UMTS/HSPA technologies. As of December 31, 2007, Telcel had approximately over 50 million cellular subscribers.

Ericsson's HSPA solution
HSPA stands for High-Speed Packet Access.  An inherent advantage of HSPA is that the technology is a natural extension of existing WCDMA/GSM networks, or about 85 percent of the world's existing wireless networks, and therefore has the potential to be readily available to a large number of wireless users, creating a mass market for mobile broadband.
By 2010, 71 percent of mobile broadband connections are projected to be HSPA based.
Ericsson's HSPA mobile broadband solution, part of Ericsson's Full Service Broadband offering, today enables download speeds of up to 14.4Mbps and upload speeds of 1.4Mbps. The advanced technology lets operators more than double their system capacity and cuts response times for interactive services. On average, users will be able to download 20 times faster than with a GSM/GPRS connection. Future evolution steps will increase the HSPA download speed to 42Mbps and the upload speed to 12Mbps. Ericsson offers HSPA support on many frequency bands ranging from 850MHz to 2.6GHz.