STOCKHOLM -- Elektrilevi, the major Estonian electricity distribution network operator, has signed an eight-year contract with Ericsson (NASDAQ:ERIC) to supply, deploy, systems integrate and run a smart-metering network.

Ericsson will supply and deploy services on the 2G/3G mobile internet and power-line communication technologies for management and data information, including deployment of 630,000 smart meters. Ericsson will also perform systems integration of the meter and data management operation support systems (OSS). Ericsson will operate the smart metering network during the deployment period.

Following a pilot project involving 5,700 smart meters this year, the rollout of the rest of the 630,000 smart meters will take place from 2013 to 2016. After that, Ericsson will provide maintenance for three years and Elektrilevi will have the option of extending the maintenance contract until 2025.

Ericsson AB (Nasdaq: ERIC)