Ericsson (NASDAQ: ERIC) has signed an eight-year contract with leading operator Faroese Telecom to build and deploy a WCDMA/HSPA network for both the 2100MHz and 900MHz frequencies. This will enable Faroese Telecom to deliver high-speed mobile broadband services to remote areas across the Faroe Islands and even offshore platforms in the North Atlantic.


Under the agreement, Ericsson will be the sole supplier of a complete WCDMA/HSPA radio access network and a GSM/WCDMA common core network, which establishes a single platform for both technologies. Ericsson will also expand Faroese Telecom's GSM network, upgrade its software and deliver a range of professional services, including design, network deployment, core network systems integration and support services. Commercial launch is scheduled for late summer 2009.


The network will be based on Ericsson's WCDMA/HSPA technology for both the 2100MHz and 900MHz frequencies, enabling Faroese Telecom to optimize network coverage for subscribers in remote areas. Ericsson's solution for the 900MHz band provides extended coverage through improved radio-wave signal strength at lower frequencies, making it easier to provide mobile broadband services in rural areas, as well as improved indoor coverage in urban areas.


Ericsson's HSPA solution increases data speeds by making significant enhancements to both the uplink and the downlink, enabling Faroese Telecom to provide mobile broadband data speeds up to 21 Mbps. The technology boosts network capacity and cuts response times, increasing the performance of interactivity.


Kristian Davidsen, President of Faroese Telecom, says: "The Faroe Islands is a very competitive market and we need a strong and reliable partner to ensure our success. Ericsson's leadership in HSPA technology will secure a quick and stable rollout of high-speed mobile-data services to our customers and cement our position as the leading local operator."


Lars Tofft, President of Ericsson Denmark, says: "This agreement further strengthens our over 100 year long partnership with Faroese Telecom. We are looking forward to helping them provide subscribers with anywhere, anytime mobile broadband access across the Faroe Islands."


 
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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 250 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 billion (SEK 209 billion) in 2008. Founded in 1876 and headquartered in Stockholm, Sweden, Ericsson is listed on OMX Nordic Exchange Stockholm and NASDAQ.
 
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