Ericsson selected by Magyar Telekom to modernize its network

* Market leader Magyar Telekom in Hungary chooses Ericsson as sole partner to modernize its radio access network and prepares for LTE
* New contract involves total overhaul of radio access network

With ever-increasing demands for data services and a strong commitment to providing the best available network performance and quality to its customers, leading Hungarian operator Magyar Telekom, of the Deutsche Telekom Group, has chosen Ericsson (NASDAQ: ERIC) to undertake a complete overhaul of its radio access network. The overhaul will drastically decrease Magyar Telekom’s operational costs while further expanding mobile broadband service performance and coverage.

Ericsson will transform Magyar Telekom’s 2G and 3G networks using the multi-standard RBS 6000 radio access network, which will also be ready for 4G/LTE functionality once licenses have been allocated.

Istvan Maradi, Chief Technology Officer of Magyar Telekom says:,“Our partner, Ericsson, will make sure our network will meet the most demanding expectations and help us to stay on top in Hungary. It is also makes sense for us to prepare our network for easy introduction of LTE functionality by using Ericsson’s multi-standard network.”

Nils de Baar, Head of Global Account for DT Group at Ericsson, says: “We believe in Magyar Telekom’s wise decision to introduce a multi-standard technology when the aging 2G network needs a strong boost. This will bring both a reduction in OPEX and a better user experience, while also preparing the network to meet the ever-growing demand for mobile broadband. This is a prestigious obligation for us and we will make every effort to meet our customers’ expectations.”

Ericsson Hungary celebrates 100 years in Hungary in 2011. Ericsson today has the largest R&D operation in the country. Emil Nilsson, Head of Customer Unit Central Europe and President of Ericsson Hungary,said: “This great win further emphasizes the importance of our long presence in the country and strong focus on technology leadership. With the agreement with Magyar Telekom, Ericsson has teamed up with the market leading operator once again in Hungary.”

Notes to editors:

Ericsson Hungary

Ericsson Hungary celebrates 100 years in Hungary in 2011. Ericsson Hungary believes it is the task of Ericsson to participate in developing the future of mobile and broadband internet communication with innovative solutions and to play a determinant role in forming the world of telecommunications through its activities related to the most advanced, leading research and technologies. Hungary, and the R&D center operating in the country, are to play a leading role in achieving this - of the almost 1500 employees in the country, more than 1000 are working in research and development, making Ericsson the largest company in Hungary dealing with telecom research and development. This year’s centenary milestone will be marked by two special achievements: one is the continual development of R&D activities, the other is today’s announcement that the market-leading operator has chosen the market leader in technology.

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Ericsson is the world’s leading provider of technology and services to telecom operators. Ericsson is the leader in 2G, 3G and 4G mobile technologies, and provides support for networks with over 2 billion subscribers and has the leading position in managed services. The company’s portfolio comprises mobile and fixed network infrastructure, telecom services, software, broadband and multimedia solutions for operators, enterprises and the media industry. The Sony Ericsson and ST-Ericsson joint ventures provide consumers with feature-rich personal mobile devices.

Ericsson is advancing its vision of being the “prime driver in an all-communicating world” through innovation, technology, and sustainable business solutions. Working in 175 countries, more than 90,000 employees generated revenue of SEK 203.3 billion (USD 28.2 billion) in 2010. Founded in 1876 with the headquarters in Stockholm, Sweden, Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ New York.

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