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Vivo chooses Ericsson as supplier of new GSM network in Brazil


August 28, 2006, Ericsson (NASDAQ:ERIC) has been selected by the largest mobile operator in the southern hemisphere, Vivo - a company controlled by Portugal Telecom and Telefónica - to provide a future-proof network for its customers in Brazil. The contract includes the Ericsson Mobile Softswitch solution and a GSM/GPRS radio access network.

The initiative is part of Vivo’s strategy to build its own GSM network to further strengthen its leading position in the competitive Brazilian market.

Ericsson was selected as the sole supplier of the core network for voice and data, including the mobile softswitch solution, and as the main supplier for the radio network, covering the states of Acre, Amapá, Amazonas, Bahia, Distrito Federal, Goiás, Maranhão, Mato Grosso, Mato Grosso do Sul, Pará, Rondônia, Roraima, São Paulo, Sergipe and Tocantins.

Ericsson’s extensive knowledge of Vivo’s network - as the current supplier of gateways, transmission equipment and field maintenance services for the CDMA network - combined with high-performance dual-band radio base stations, local competence, and local production of network nodes and components, made it the provider with the fastest rollout capabilities in this complex market.

Anders Runevad, President of Ericsson Brazil, says: “Ericsson is pleased to continue its successful cooperation with Vivo by supplying a GSM network to meet subscriber growth. This contract underlines Ericsson’s leading position in Brazil.”

The rich radio solution will allow a complete overlay of Vivo’s existing CDMA sites, initially within the same spectrum.

The Ericsson Mobile Softswitch solution will expand Vivo’s network capacity and allow the operator to introduce high-quality services quickly and cost efficiently. Mobile softswitch paves the way to an all-IP network.

By using Ericsson’s latest GSM technologies, Vivo is well prepared for future evolution to 3G/WCDMA, thus protecting today’s investment for tomorrow’s technology needs.

Ericsson is shaping the future of Mobile and Broadband Internet communication 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.


About Vivo

Vivo is the largest provider of mobile telephony services in the southern hemisphere. Controlled by Portugal Telecom and Telefónica, the company is the leader in both the consumer and corporate markets.

About Ericsson Softswitch solutions

Ericsson Softswitch solutions are commercially proven systems that maintain and extend operator revenues. They provide a low-risk evolution of existing circuit-switched networks to a telecom-quality, IP multimedia service platform. They offer operators the opportunity to utilize network resources for next-generation services in the most cost-efficient way, while continuing to profit from classic voice services. More than 85 fixed and mobile operators worldwide have commercially launched services based on Ericsson’s true Softswitch solutions.


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