· 4G network based on Ericsson's LTE/EPC will deliver faster data-rich services with low latency
· Enables mid-tier service providers to offer high-performance capabilities economically to people outside metropolitan areas
· Consumers and businesses in rural US markets will enjoy the benefits of mobile broadband with tailored rural applications
Ericsson (NASDAQ:ERIC) and the NetAmerica Alliance, LLC, today announced a technology agreement that will bring 4G/LTE mobile broadband services to people and businesses in smaller markets and rural areas across the United States. By building and deploying a shared nationwide LTE network, NetAmerica will help independent operators bring broadband communications services to consumers in rural markets quickly and at lower costs. Network sharing is an increasingly common way for operators to reduce costs, maximize efficiency and deliver the best performance for their customers.
Arun Bhikshesvaran, Head of Strategy and Market Development, Ericsson North America, says: "This is a new type of LTE deployment. NetAmerica is making it possible for smaller operators to join together to deliver cost effectively the same mobile broadband services available in major metropolitan areas. The socioeconomic benefits of broadband services in metropolitan areas are well-proven and, with applications designed for rural consumers, one can only imagine the extent to which the people and businesses in these markets will become more empowered and more productive as a result of this opportunity."
Roger Hutton, Chairman and CEO of NetAmerica, says: "Our requirements and those of our participants demanded more than just a vendor relationship. We needed a partner who could truly work with us and our alliance participants to not only bring 4G wireless to their communities, but to provide true converged services for their wireline business as well. After an extensive evaluation of all the major suppliers, Ericsson proved to be that partner."
According to the terms of the four-year contract, Ericsson will be the sole supplier for the LTE -based radio access network and the core network, based on the latest Evolved Packet Core (EPC) technology. The contract also includes IMS, enabling the deployment of tailor-made applications and systems integration services. Furthermore, Ericsson will provide a Mobile Home Gateway solution, which integrates easily with existing wireline service offerings to deliver broadband speeds to communities that have not yet been able to roll out fixed broadband services cost effectively.
Notes to editors:
Photo of Arun Bhikshesvaran attached
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NetAmerica Alliance, LLC, has joined forces with independent 4G license holders to provide them with buying power, nationwide branding, marketing and training programs, a fully staffed network operations center, core networking elements, applications development and negotiated nationwide roaming agreements. Alliance participants run the network in their own territories, but NetAmerica provides the critical mass, economies of scale, and business and back-office functions needed to thrive in an increasingly competitive environment. Read more at: www.netamericaalliance.com/index.html
Ericsson is the world's leading provider of technology and services to telecom operators. Ericsson is the leader in 2G, 3G and 4G mobile technologies, and provides support for networks with over 2 billion subscribers and has the leading position in managed services. The company's portfolio comprises mobile and fixed network infrastructure, telecom services, software, broadband and multimedia solutions for operators, enterprises and the media industry. The Sony Ericsson and ST-Ericsson joint ventures provide consumers with feature-rich personal mobile devices.
Ericsson is advancing its vision of being the "prime driver in an all-communicating world" through innovation, technology, and sustainable business solutions. Working in 175 countries, more than 90,000 employees generated revenue of SEK 203.3 billion (USD 28.2 billion) in 2010. Founded in 1876 with the headquarters in Stockholm, Sweden, Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ New York.
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