STOCKHOLM -- Ericsson (NASDAQ: ERIC) has been selected by German operator Versatel for the nationwide deployment and integration of its all-IP next-generation access network.

The multi-million euro deal is one of Ericsson's largest EDA broadband contracts in Germany and will cover a minimum two-year period. Ericsson's high-performance broadband solution positions Versatel for future multimedia expansion by boosting capacity and quality, and enabling it to offer higher bandwidth to end users.

The rollout and commercial launch are scheduled to begin in December 2006. Ericsson will initially provide a full-service broadband solution beginning with all-IP access through EDA 2530, with the potential to add IMS and multimedia applications. The contract also includes turnkey program management, installation, commissioning, integration and after-sales service.

Versatel COO Dr Hai Cheng says: "Ericsson's solution provides the springboard for our national rollout. It ensures we have the necessary systems in place to deliver high-quality, cost-effective and innovative multimedia services to customers, both now and in the future."

Dr Stefan Kindt, president of Ericsson in Germany, says: "The deal represents a milestone in Ericsson's longstanding relationship with Versatel and is one of the largest bandwidth upgrades in Germany. It also confirms Ericsson's decision to structure its business around infrastructure, services and multimedia to meet the needs of customers like Versatel."

Ericsson AB (Nasdaq: ERIC)