STOCKHOLM -- Saudi Arabian operator Mobily has selected Ericsson (NASDAQ:ERICY) to build its HSPA enabled 3G network and to deliver a major expansion of existing GSM network, including Ericsson Mobile Softswitch solution, radio, transmission and core equipment.

Under the agreement Ericsson will deliver equipment and services to build Mobily's 3G network with full HSPA functionality.

Ericsson's HSPA solution is offering bandwidth similar to wireline data services. The advanced technology offers operators more than double the system capacity of WCDMA and dramatically shortens response times for interactive services, drastically improving the end user's experience when using broadband services.

Ericsson has also been selected as supplier for a major expansion of Mobily's existing GSM network, including Ericsson Mobile Softswitch solution, radio, transmission and core equipment.

Bo-Erik Dahlström, President Ericsson Middle East, says: "We are pleased to provide Mobily with our advanced solutions for HSPA and mobile softswitch, that provide them with a solid platform for next generation services and underline their innovative profile in the market."

Ericsson AB (Nasdaq: ERIC)