Ericsson wins next-generation network contract with Versatel

December 5, 2006, Ericsson (NASDAQ: ERIC) has been selected by German operator Versatel for the nationwide deployment and integration of its all-IP next-generation access network.

The multi-million euro deal is one of Ericsson’s largest EDA broadband contracts in Germany and will cover a minimum two-year period. Ericsson’s high-performance broadband solution positions Versatel for future multimedia expansion by boosting capacity and quality, and enabling it to offer higher bandwidth to end users.

The rollout and commercial launch are scheduled to begin in December 2006. Ericsson will initially provide a full-service broadband solution beginning with all-IP access through EDA 2530, with the potential to add IMS and multimedia applications. The contract also includes turnkey program management, installation, commissioning, integration and after-sales service.

Versatel COO Dr Hai Cheng says: “Ericsson’s solution provides the springboard for our national rollout. It ensures we have the necessary systems in place to deliver high-quality, cost-effective and innovative multimedia services to customers, both now and in the future.”

Dr Stefan Kindt, president of Ericsson in Germany, says: “The deal represents a milestone in Ericsson’s longstanding relationship with Versatel and is one of the largest bandwidth upgrades in Germany. It also confirms Ericsson’s decision to structure its business around infrastructure, services and multimedia to meet the needs of customers like Versatel.”

This contract highlights the benefits of the Marconi acquisition to Ericsson’s customers. Both fixed and mobile operators value having a strategic partner and a provider of end-to-end solutions - including broadband access, leading edge microwave and optical transport networks.

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.
Read more at www.ericsson.com

About Ericsson Full-Service Broadband

Ericsson’s Full-Service Broadband provides users with connectivity to any broadband service, anywhere and on any device, in a convenient way. Ericsson’s offering encompasses a unique combination of products and services that enables operators and network providers to meet the demand for access anywhere to broadband services, quickly, cost-effectively and with minimal risk. Ericsson’s Full-Service Broadband architecture allow operators to merge fixed and mobile networks and take them into an integrated broadband network for all types of services. The offering includes solutions in mobile broadband, high-performance broadband, service convenience, and efficient network convergence as well as integration services.

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