Ericsson Expands Indosat

STOCKHOLM -- PT Indosat Tbk. (Indosat) has awarded Ericsson (NASDAQ:ERIC) a contract extension to expand its WCDMA/HSPA network coverage in greater Jakarta, Indonesia. Indosat consumers in the area will receive wider coverage and faster mobile broadband speeds.

Ericsson will be responsible for supplying core, radio access network and transmission equipment, covering network design, deployment, integration, performance and improvement of their WCDMA/HSPA network. The network coverage expansion would bring Indosat service to more of its greater Jakarta subscribers.

The agreement is an expansion of the contract awarded to Ericsson in 2006. Indosat consumers in Jakarta are now enjoying the fastest mobile broadband speeds currently available and the expansion of its network will enable Indosat to offer broader coverage in Jakarta and the surrounding area. In addition, Indosat will also be able to offer more appealing mobile broadband services, in line with their development plan of reaching higher data speeds of up to 14.4Mbps for the downlink and 1.8Mbps for the uplink by the end of 2007.

The agreement will also see Ericsson upgrading the existing WCDMA radio network to be IP ready, clearing the way for Indosat to an all-IP network. This solution would provide Indosat with a rapid and cost-efficient growth of capacity and coverage.

Johnny Swandi Sjam, President Director of Indosat, says: "Increasing our coverage and speed is crucial to Indosat's strategy for mobile broadband growth, in line with our rapid-business-growth plan. Thus, we need to have a partner who can meet these challenges and we believe Ericsson is the right partner to support us in providing the latest mobile broadband services to our customers in Greater Jakarta."

Bengt Thornberg, President, Ericsson Indonesia, says: "Ericsson is pleased to be awarded with this expansion contract, it's further evidence of our performance as a reliable business partner. Ericsson is committed to supporting Indosat in bringing faster mobile broadband and other multimedia services to the country. This expansion contract further highlights our leading position in WCDMA/HSPA."

Ericsson AB (Nasdaq: ERIC)