STOCKHOLM -- Ericsson (NASDAQ:ERICY) has signed a contract with Etisalat, United Arab Emirates, to migrate its international switching layer to IP based solution. Etisalat will be eventually able to offer carrier-class IP telephony based on Ericsson's Telephony Softswitch Solution. The contract further strengthens Ericsson's position as the leading supplier of telecom-grade next generation networks enabling an efficient evolution to all-IP and empowers Etisalat to be the leading operator in technology and innovative services in the region.

The Telephony Softswitch Solution is the first step in Etisalat's plan to evolve its International switching layer from circuit switching to packet switching using IP. In that way Etisalat can increase competitiveness by transporting voice traffic efficiently over its multi-services IP backbone network.

Under the agreement Ericsson will deliver, implement and integrate Telephony Softswitches, Media Gateways and Operations Support System for efficient management of the evolved network

The Telephony Softswitch Solution supports Etisalat offering of competitive international telephony services as well as it enables Etisalat to interconnect to international VoIP operators using IP and the SIP protocols.

Etisalat Senior Manager says: "Etisalat constantly strives to provide the local market and the national telecom sector with new services that attract different business and individual technology users and here IP plays a major role."

Sam Saba, Country Manager, Ericsson United Arab Emirates, says: "Providing Ericsson's Telephony Softswitch Solution, with IP connectivity for realizing the International Gateways is a major proof point of the Ericsson and Etisalat strategic partnership. We are committed to support Etisalat in their ongoing modernization of the wireline network, by providing an efficient evolution to all-IP."

Etisalat