STOCKHOLM -- Ericsson (NASDAQ:ERIC) has been selected by Bhutan Telecom (BTL) to supply a WCDMA/HSPA network in a move set to transform the mountain kingdom's communications into a state-of-the-art network.

Under the terms of the agreement, Ericsson will supply an HSPA-enabled network, including WCDMA radio access equipment, all-IP core and transmission. Ericsson will also be responsible for network design, deployment and integration of BTL's existing GSM network.

Rollout will begin in November, starting in the towns of Thimpu and Paro before going nationwide. The new state-of-the-art network will provide a host of services, including high-speed internet access, e-mail, video telephony, MMS (multimedia messaging) and many innovative content-based services.

Thinley Dorji, Managing Director at BTL, says: "The need to roll out a state-of-the-art network cost-effectively to provide our customers with the best possible communication experience was of paramount importance. This contract extends our long-running relationship with Ericsson, with their industry expertise making them the natural partner of choice for this project."

Ericsson AB (Nasdaq: ERIC)