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Ericsson and Telekom Srbija sign agreement for GSM network expansion and upgrade


May 31, 2006

Ericsson (NASDAQ:ERICY) and the leading Serbian operator, Telekom Serbia, has signed a EUR 75 million contract for the provision of equipment and services for the expansion and upgrade of Telekom Serbia’s GSM/GPRS/EDGE network. This agreement is the largest Ericsson contract ever in Serbia, a result of a long and well established cooperation between the two companies.

Ericsson will supply Ericsson Mobile Softswitch solution and state-of-the-art radio network equipment and software as well as a suite of related services. Deliveries will start in June 2006, and the expansion and upgrade will make Telekom Srbija’s network fully prepared for a cost-efficient and smooth introduction of 3G.

Mr. Drasko Petrovic, General Manager Telekom Srbija, says: “Telekom Srbija always strives for offering best-in-class communications to its customers. This agreement with Ericsson, the world leader in telecommunication solutions, is yet another proof of our firm commitment to providing state-of the art solutions of modern mobile technology to our subscribers.”

Bo Andersson, President, Ericsson Serbia & Montenegro, says: “We are proud that Telekom Srbija selected Ericsson for this important upgrade, which prepares the network for a smooth and cost-efficient transition to 3G and an all-IP network. This is the result of many years of successful cooperation between the two companies.”

Ericsson is shaping the future of Mobile and Broadband Internet communications through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication companies in the world.


Ericsson Media Relations
Phone: +46 8 719 69 92

About Telekom Srbija
Under the GSM license agreement of June 9, 1997, the Government of the Republic of Serbia authorized the Joint Stock Telecommunications Company Telekom Srbija a.d., as a license holder, to establish, manage and provide the services of the public digital cellular mobile telephony in the entire territory of the Republic of Serbia, according to GSM standards. On August 9, 1997, the Federal Ministry of Telecommunications assigned to Telekom Srbija a.d. for the period of validity of license, frequencies in 900 MHz spectrum for introducing GSM system.

The Telekom Srbija has a market share of over 59% and covers 87.84% of the territory excluding Kosovo or 84.32% with Kosovo. Population coverage without Kosovo is 95.50%, and with Kosovo is 90.09%. Roaming services are provided in over 100 countries, in more than 220 networks of foreign mobile operators.
For more information please check: http://www.telekom.yu

About Ericsson Softswitch solutions
Ericsson is the leading provider of Softswitch solutions for both mobile and wireline networks. Ericsson’s solutions are commercially proven and fully standards-compliant, offering an efficient and low-risk evolution of existing circuit-switched networks to a telecom quality, IP based service platform. They use network resources in the most cost efficient way to provide both classic telephony and next generation services. More than 70 fixed and mobile operators worldwide have commercially launched services based on Ericsson’s Softswitch solutions.


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