STOCKHOLM -- Lao Telecom (LTC), the largest telecommunications service provider in Laos, has awarded a contract to Ericsson (NASDAQ:ERICY) for the expansion of its GSM network in four provinces in the central region of the country.

The contract includes core and radio network equipment, and covers a comprehensive range of telecommunications services including network deployment and radio network optimization, and is to be implemented over eight months.

When completed in October this year, LTC's network quality, performance and coverage in the capital Vientiane, and the Vientiane, Xaisomboun and Bolikhamxai provinces, will be significantly enhanced. LTC's network capacity will also be increased to meet its fast growth of subscribers, allowing it to support more than 70,000 subscribers.

Houmphanh Intharath, LTC's Director General says: "By choosing Ericsson, LTC can be assured that our customers, located in the capital city and its nearby provinces, are provided with the best mobile communication experience such as quick connection, and clear signal. LTC believes that the Laos' GSM network users will greatly benefit from a superior quality network that provides high quality services."

Hans O. Karlsson, country manager of Ericsson Thailand, says: "We are extremely honored to have LTC's trust and confidence in expanding its GSM network, particularly in the country's busiest areas when it comes to mobile phone usage. This is further testimony to our strong technology leadership in GSM, and further strengthens our relationship with LTC".

"Ericsson is fully committed to helping LTC strengthen its market leadership in Laos and enhancing its competitiveness. With our strong local presence and organization, we are confident that we will be able to meet LTC's expectations in providing a first-class network."

Ericsson AB (Nasdaq: ERIC)