Ericsson Wins Swisscom Deal

STOCKHOLM, Sweden -- Swiss consumers are enjoying data-rich services like never before. With mobile-data usage expected to double during the year, Swisscom has entered into a five-year contract with Ericsson (NASDAQ:ERIC) for mobile-network modernization and upgrade to LTE. The deal will ensure that Swisscom can continue to offer its users the best possible network in the most efficient way.

Ericsson will modernize 6,000 mobile sites with its RBS 6000 multi-standard radio base stations and optimize all of Swisscom's networks. The operator's mobile-data users all over the country - and especially those living in areas where traffic is dense, such as in inner cities - will benefit from faster speeds as a result.

By making Ericsson the sole supplier for the modernization of its existing mobile-core and radio network, and the introduction of LTE, Swisscom extends its existing partnership, in which Ericsson has been the sole 2G, 3G radio and main mobile core supplier.

Heinz Herren, Head of Network & IT, Swisscom, says: "By continuing to provide our subscribers with the best network possible while meeting the growing usage of mobile data, we will invest several hundred million Swiss Francs in mobile-network modernization over the next five years. Thanks to our long-lasting partnership, we are familiar with Ericsson's expertise in deploying new technologies, and we have already established processes that will allow us to make savings in this project."

Anders Runevad, Head of Region Western & Central Europe at Ericsson says: "We are pleased to help Swisscom introduce LTE and allow its users to enjoy the benefits of LTE on their smartphones, laptops and tablets. As Ericsson sees mobility and broadband as pillars of the Networked Society, in which everyone and everything is connected, this extended partnership marks yet another step towards realizing that vision."

Under the five-year contract, Ericsson will deliver core network, multi-standard radio base stations for 2G, 3G and 4G, as well as related installation services for the swap of the existing infrastructure. This includes software, hardware and the introduction of small cells, mostly in traffic-dense areas. With this deployment Swisscom will have GSM, WCDMA and LTE access networks. A key component in the core network is therefore Ericsson's SGSN-MME node, which supports all three access technologies.The rollout will start in January 2012 and all mobile sites will be modernized by mid 2014.

Ericsson AB (Nasdaq: ERIC)

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