Hrvatski Telekom selects Ericsson for 5-year managed services contract

• Ericsson signs five-year managed services contract with leading Croatian operator Hrvatski Telekom, a member of the Deutsche Telekom Group
• Ericsson will support Hrvatski Telekom in raising the quality and efficiency of its network

Hrvatski Telekom, a member of the Deutsche Telekom Group and the leading provider of telecommunications services in Croatia, has selected Ericsson (NASDAQ: ERIC) as its partner in the construction and maintenance of telecommunications infrastructure.

The five-year contract for construction and maintenance of telecommunications infrastructure includes planning and construction of fixed and mobile networks, maintenance of telecommunications infrastructure, telecom network monitoring, as well as field maintenance of active access and passive networks.

Davor Tomaškovic, President of the Management Board and CEO of Hrvatski Telekom, says: “Through this agreement, Hrvatski Telekom intends to increase the quality of infrastructure and simultaneously optimize costs related to the construction and maintenance of fixed and mobile networks. We have chosen a good and reliable partner who will increase the quality of our electronic communications networks at the highest level and at optimal costs. We have entrusted these important tasks to a company that is the world leader in this area, so that we can focus on providing advanced and innovative services for our customers.”

Jean-Claude Geha, Vice President and Head of Managed Services, Ericsson, says: “While extending our relationship with Hrvatski Telekom and the Deutsche Telekom Group, we will use our expertise gained from more than 15 years in telecom managed services to improve end-user experience and optimize network operating costs. By saving time and resources, Hrvatski Telekom will be able to increase its investments in innovation, sales and customer management.”

640 Hrvatski Telekom employees will be transferred to Ericsson Nikola Tesla Servisi d.o.o , a newly established subsidiary of Ericsson Nikola Tesla.

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About Hrvatski Telekom
Hrvatski Telekom is the leading provider of telecommunications services in Croatia and the sole company to offer the full range of these services. Alongside fixed and mobile telephony services, HT provides Internet services, including IPTV, data transmission services and ICT services, and is a leader in all business segments. According to the results for the second quarter of 2014, HT Group serves 1.1 million fixed-line customers, 2.3 million mobile subscribers and 620,508 retail broadband access lines and provides television services to 393,525 customers. HT is a member of Deutsche Telekom Group.

Ericsson is the driving force behind the Networked Society - a world leader in communications technology and services. Our long-term relationships with every major telecom operator in the world allow people, businesses and societies to fulfill their potential and create a more sustainable future.

Our services, software and infrastructure - especially in mobility, broadband and the cloud - are enabling the telecom industry and other sectors to do better business, increase efficiency, improve the user experience and capture new opportunities.

With more than 110,000 professionals and customers in 180 countries, we combine global scale with technology and services leadership. We support networks that connect more than 2.5 billion subscribers. Forty percent of the world’s mobile traffic is carried over Ericsson networks. And our investments in research and development ensure that our solutions - and our customers - stay in front.

Founded in 1876, Ericsson has its headquarters in Stockholm, Sweden. Net sales in 2013 were SEK 227.4 billion (USD 34.9 billion). Ericsson is listed on NASDAQ OMX stock exchange in Stockholm and the NASDAQ in New York.

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