Movistar selects Ericsson to move towards all-IP in Chile

August 2, 2006, Movistar Chile, the leading operator in Chile and part of the Telefónica group, has chosen Ericsson’s (NASDAQ:ERICY) Mobile Softswitch Solution, including multi-service IP transport, to upgrade its network. The move marks Movistar Chile’s first step toward an all-IP network.

Ericsson’s Mobile Softswitch Solution and Mobile Packet Backbone Network will upgrade and expand Movistar’s network in Chile in a cost-efficient way and will allow the operator to introduce high-quality services quickly. Ericsson will also provide a range of associated professional services to ensure successful network delivery.

Gustavo Marambio, CTO, Movistar Chile, says: “Movistar leads the Chilean market in mobile multimedia services, with the most innovative and complete portfolio of applications and interactive contents. We chose Ericsson for this significant investment because of its technology leadership, the value it delivers in its solutions, and its ability to continue to support us in our future requirements.”

Gino Montalto, President, Ericsson Chile, says: “We are honored to support Movistar during this important step in Chile. Our state-of-the-art technology will keep Movistar at the forefront in the region, and allows it to bring the most innovative services to its customers.”

Ericsson’s Mobile Softswitch Solution is the world’s most widely deployed softswitch architecture solution. It powers around 50 percent of all mobile networks with softswitch architecture that are in full commercial service.

Ericsson’s Mobile Packet Backbone Network, a world-leading multi-service IP transport solution, is optimized for mobile networks and services.

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 http://www.ericsson.com

About Movistar Chile
Movistar is the trademark that unifies Telefónica Móviles operations in Chile, where it is the market leader, with more than 5.4 million customers and a leading position in the launch of the most innovative products and services. At the beginning of this year, Telefónica Móviles integrated the operations of Telefónica Móvil of Chile and Bellsouth Chile into one company, consolidating its local service with the launch of its new brand for the Hispanic market, Movistar.

About Ericsson Mobile Packet Backbone Network solutions
Ericsson is a leading provider of Packet Backbone Network solutions for both mobile and wireline networks. The solutions provide fully verified and field-proven IP infrastructure for the telecom quality delivery of both circuit-switched voice and packet-switched data services. The Ericsson Packet Backbone Network solutions fully support Ericsson’s Softswitch and IMS deployments, and address key operator issues such as real-time voice performance, telecom-grade availability and security. More than 100 fixed and mobile operators worldwide have launched commercial services based on Ericsson’s Packet Backbone Network solutions and associated services.

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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