STOCKHOLM -- Ericsson (NASDAQ:ERIC) today announced it had won a turnkey contract valued at USD 1.3 billion to supply GSM and WCDMA/HSPA equipment and related telecom services to Bharat Sanchar Nigam Ltd (BSNL), the largest telecom operator in India.

Under the agreement, Ericsson will be responsible for the expansion and upgrade of BSNL's existing GSM network and introduction of WCDMA/HSPA functionality. This upgrade marks an important step in BSNL's network evolution and sets the stage for end-customer access to a range of innovative telecommunications.

Ericsson will supply a GSM and WCDMA/HSPA radio access network, transmission equipment and a complete GSM/WCDMA common core network - including the Ericsson Mobile Softswitch Solution, service-aware Packet Core, IMS and a multiservice IP Packet Backbone Network. Ericsson will also deliver telecom-related services, such as network design, deployment and systems integration.

Deliveries will start in October 2007, with the first phase of the project set to be completed in 12 months. The contract reinforces Ericsson's leading position in this high-growth market and reflects Ericsson's ambition of offering communications to all.

Kuldeep Goyal, Chairman and Managing Director of BSNL, says: "This contract represents a milestone in our long-standing relationship with Ericsson. Upgrading our network will pave the way for a premium communications experience for our customers, and enable us to address new customer segments cost-efficiently. Ericsson's leading position, end-to-end capabilities and demonstrated competence, product portfolio, rollout and professional services capabilities made it the natural choice for this important project."

Mats Granryd, President, Ericsson India, says: "Ericsson is proud to have been selected for this landmark project, which will further strengthen our long-term relationship with BSNL. This deal is set to be a catalyst for future telecom growth in the dynamic Indian market."

Ericsson AB (Nasdaq: ERIC)