Ericsson (NASDAQ:ERIC) has been selected by Telcel - Mexico's leading mobile operator and a subsidiary of América Móvil - to provide microwave-transmission links for high-speed mobile broadband.
The agreement is the largest microwave deal in Latin America so far. Ericsson will provide Telcel with microwave-transmission links for 2G and 3G/HSPA based on the Ericsson MINI-LINK TN solution. This is a turnkey project in which Ericsson will provide full customer, equipment and field support.
Mobile penetration in Mexico is growing at a yearly rate of about 22 percent and reached an estimated 64 percent in 2007. This rapid growth has prompted Mexican mobile operators since 2003 to upgrade their networks to offer high-capacity and high-speed data services. Ericsson's microwave solution will boost the transmission capacity of Telcel's 2G and 3G networks, enabling the provision of high-speed mobile broadband based on HSPA.
The MINI-LINK TN solution will enable Telcel to increase its network coverage and subscriber base while lowering operating expenses. It also provides fast rollout capabilities and the flexibility to expand capacity according to the traffic growth.
Telcel has stated that it is looking to migrate gradually to IP its whole network, to give its customers the highest mobile broadband speed.
MINI-LINK TN will not only provide complete capacity requirements for its existing 2G/3G-HSPA network today, but also enable a smooth migration to an all-IP network in the future.
Lars Lindén, President of Ericsson Mexico, says: "This is our largest microwave contract to date in Latin America. It shows that MINI-LINK TN is the best-in-class microwave platform from both a commercial and technical point of view. It provides Telcel with all PDH/SDH and IP capacity requirements for a true high-speed mobile broadband network."
The first phase of the contract extends through the end of 2008. Rollout begins in the third quarter of 2008.
Ericsson is the undisputed market leader in microwave transmission and has delivered more than 1.5 million microwave radios around the world. The portfolio consists of the well-established MINI-LINK family, strengthened by the Marconi LH trunk radio. All products are managed by a common management system, ServiceOn.
Notes to editors:
About MINI-LINK TN and Ericsson's Microwave offering
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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.
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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Telcel is the leading wireless services provider in Mexico with more than 53 million clients and more than 75% of the Mexican wireless market. In operation since 1989, Telcel offers a wide array of voice and data services in the largest TDMA network and GSM/GPRS/EDGE and UMTS/HSDPA technologies. Telcel is a subsidiary of América Movil [NYSE: AMX] [NASDAQ: AMOV] [BMV: AMX], the leading provider of wireless services in Latin America. As of July 21, 2008 it had over 165.3 million wireless subscribers.