MELBOURNE, Australia -- Australia's National Broadband Network Company (NBN Co) will continue its fixed wireless managed service partnership with Ericsson (NASDAQ:ERIC) and has expanded the partnership to include operation of the ground component of the Long Term Satellite Solution (LTSS) and customer service activation.
With the introduction of the LTSS, Ericsson will be the primary service partner for both NBN Co's fixed wireless and satellite services, which are planned to cover over 1 million households. The agreement will help NBN Co meet increasing call for high-speed broadband services in rural Australia, which is expected to reach 12,000 to 15,000 installations per month at its peak in 2016.
The deal will also include Ericsson migrating NBN Co's 42,000 interim satellite users to the LTSS when it commences, providing them with an improved broadband service.
Ericsson will continue to be responsible for the operation of the fixed wireless network, and will take on the additional responsibility of managing the satellite ground systems when launched.
Greg Adcock, NBN Co Chief Operating Officer, says: "The rising demand for high speed broadband services and need for quality delivery has led us to continue our partnership with Ericsson. We are confident that their extensive local expertise and global experience can help us deliver services to homes, farms and businesses in regional and rural Australia. This agreement will enable greater efficiencies and consistency of network management across both our fixed and satellite ground networks."
Håkan Eriksson, Head of Ericsson Australia and New Zealand, says: "As we extend our strategic partnership with NBN Co, we look forward to delivering both fixed wireless and satellite services to rural and regional Australia. Ubiquitous, affordable, dependable broadband to homes and businesses across Australia will have a tremendously positive impact on everything from education to health and social cohesion.
"By providing advanced telecommunications services to families and business, we can help to bridge the digital divide and support economic and community growth," Eriksson added.
NBN Co is an open-access, wholesale fixed broadband service provider, and was created to implement the Australian Federal Government's national broadband policy. It is wholly owned by the Australian government.