Ericsson Extends TIC Deal

STOCKHOLM -- Ericsson (NASDAQ:ERICY) today announced that the existing managed services contract with TeliaSonera International Carrier has been expanded. By including new service areas such as management of site activities, ducts and fibers, facilities and subcontractors in the carrier's global network to Ericsson's responsibilities, Ericsson will be managing a major part of field operation activities for TeliaSonera International Carrier in Europe and North America.

Since 2003 Ericsson has been responsible for managing field operation activities such as network field maintenance, spare parts handling and inventory management in TeliaSonera International Carrier's network.

As a result of today's contract expansion, Ericsson will also take responsibility for site activities, ducts and fiber (outside plant) maintenance, site surveys, and supplier management for the TeliaSonera International Carrier network - covering more than 40,000 route kilometers.

"Together with Ericsson, we have created a global platform of quality operations," says Regina Lundgren, Head of Networks at TeliaSonera International Carrier. "We now continue this successful managed services partnership by extending the contract scope and by adding new tasks to Ericsson's responsibilities. This will further reduce our operating costs, provide enhanced service quality to our customers and ensure future scalability for Telia Sonera International Carrier."

The multi-year contract also includes state-of-the-art systems from Ericsson for the implementation and management of a new IS/IT map system (Geographic Information System) for ducts and fibres in TeliaSonera International Carrier's network. Systems integration will also be carried out for the introduction of an electronic business-to-business interface. This integration will automate work orders between TeliaSonera International Carrier and Ericsson - enabling world-class efficiency in order handling between the two companies.

Johan Wibergh, Head of Market Unit Nordic & Baltics, Ericsson, says: "The market for international carriers puts high demands on the operators to run their global business operations in a highly cost-efficient manner while providing world-class, consistent services to their customers around the world. By partnering with Ericsson, TeliaSonera International Carrier has ensured its readiness to capitalize on any future market developments."

As a result of the agreement, Ericsson will take over a small number of employees from TeliaSonera International Carrier, who will complement the advanced services capabilities of Ericsson in several countries.

Ericsson AB (Nasdaq: ERIC)