Ericsson (NASDAQ:ERIC) and Dutch mobile network operator KPN have signed a contract for hosted mobile advertising. This marks Ericsson's first contract for hosted mobile advertising.
Under the agreement, Ericsson will provide KPN with an innovative and flexible end-to-end business solution for managing and delivering targeted advertisements to be displayed on mobile phones and other devices.
The hosted service enables KPN to deliver targeted advertisements based on consumer preferences to individual network users via mobile internet pages and various messaging services. The advertisements can be targeted based on each user's personal preferences. Advertising agencies can create and maintain advertisement campaigns through reporting tools.
KPN has piloted mobile advertising services with major advertisers and is currently testing them further. The company is committed to working out opt-in programs for customers in accordance with legal requirements, and is researching appropriate incentive programs. In May 2008 KPN commercially launched the first mobile advertising services.
Patrick Kuijsters, marketing director KPN Mobile, says: "KPN is proud to announce a strategic partnership with Ericsson. Ericsson' platform suits KPN's need to add relevant advertisements to operator services to end users, in which opt-in plays a crucial role. KPN's vision is to reduce waste of advertisers' media spending and to deliver relevant offers to its consumers based on their desires. Ericsson is a crucial partner in realising this vision, and is willing to help KPN shape this developing market."
Mobile advertising is a developing medium that supports new business models with promising forecasts. Mobile devices, as the most personal medium, provide opportunities for these new business models.
Nils de Baar, President, Ericsson in the Netherlands, says: "Hosting is a growing segment within Ericsson and we are pleased to collaborate in exploring new possibilities in the multimedia environment. This underlines both our strengths as the leader in telecom services and our commitment to become a leader in multimedia."
Hosting is part of Ericsson's services portfolio and it is a business model that allows Ericsson's customers to easily, cost-efficiently and quickly launch and run services while Ericsson takes responsibility for systems integration and daily management of the end-to-end service.
Notes to editors:
Ericsson's standard multimedia content is available at the broadcast room:
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 210 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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KPN is a leading provider of telecommunications services, serving customers with wireline and wireless telephony, internet and TV services. To business customers, KPN delivers voice, internet and data services as well as fully managed, outsourced ICT solutions. Both in the Netherlands and internationally, KPN provides network services to third parties, including operators and service providers. In Germany and Belgium, KPN serves consumer as well as business markets with its mobile operations.
About Ericsson's managed services
Ericsson has the telecom industry's most comprehensive offering in managed services, ranging 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 contracts for managed services, excluding hosting, Ericsson is managing networks that together serve more than 195 million subscribers worldwide.