[August 17, 2006]

After China, Ericsson Moves Into Indonesia and Bangladesh

By Kumar Amitav Chaliha

TMCnet Contributing Editor

Ericsson (News - Alert) continues to roll in Asia. After announcing that it has bagged $550 million in contracts from China Mobile, the Swedish mobile network systems maker today said it has won major contracts in Indonesia and Bangladesh.

An Ericsson statement said the company has signed a deal with Indonesia's largest cellular phone operator Telkomsel to provide a 3G/WCDMA network. Another statement said it has been given a managed services contract by Warid Telecom for a GSM/GPRS network in Bangladesh.

Under a three-year agreement signed with Telkomsel, Ericsson will deliver a 3G/WCDMA radio and core network, including HSPA, with deployment beginning immediately. The contract also includes three years of managed services, with Ericsson providing a comprehensive services offering including establishing, operating and managing the operations of Telkomsel's 3G network.

Bengt Thornberg, Country Manager of Ericsson Indonesia, said: "We have had a longstanding cooperation with Telkomsel for more than 10 years and we are honored to be selected to deliver its 3G network in Indonesia. Our solutions will allow Telkomsel to introduce new and advanced services in the country."

Telkomsel is 65 percent owned by PT Telekomunikasi Indonesia Tbk and 35 percent by Singapore Telecommunications Ltd.

The Bangladesh contract covers the operation, management and maintenance of Warid Telecom's core GSM/network, backbone transmission and real-time charging/Value Added Services (VAS).

This agreement is an extension to the contract signed earlier this year where Ericsson was chosen by Warid Telecom to supply and implement the complete core and backbone transmission equipment for its nationwide GSM/GPRS network.

Ericsson will now also manage Warid Telecom's radio network in the western part of the country, covering the areas of Rajshahi, Khulna, and Barisal.

Muneer Farooqui, Warid Telecom CEO said: "By having Ericsson to manage and operate our network, we are able to focus our resources on building our branding, sales and marketing activities, strengthening our customer services and developing more services that meet our subscribers' needs and expectations."

Jan Signell, President, Ericsson South East Asia, added: "We are proud of being selected by Warid Telecom in this contract. We have enjoyed a fruitful managed services partnership with them in Pakistan, where Warid has exceeded its own expectation. We are committed to ensure that Warid Telecom repeats similar success in Bangladesh."

The GSM expansion contracts with China Mobile together worth $550 million were signed during the first half of 2006. They include projects in 17 regions of China.

Ericsson has already started deliveries of network equipment which it claims will be able to support nearly 200 million subscribers across the 17 regions.

Under the contracts, Ericsson will provide China Mobile with core and radio networks, together with related technical support and services. It will also deploy its Mobile Softswitch Solution in the contracted regions.

To learn more about Ericsson, visit http://www.ericsson.com

Kumar Amitav Chaliha has worked as an editor, reporter, writer and a columnist in India and the United States. He has been writing for both print and the Web on topics including energy, chemicals, steel, wire and cable, telecom, IT, and doing business in Asia. He holds a master's degree in journalism and mass communication from Iowa State University.

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