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Ericsson secures next generation transport network contract with Telstra


October 19, 2006, Ericsson (NASDAQ:ERIC) and Telstra have signed a three-year deal valued more than USD 230 million, to help evolve the operator’s inter-capital, regional and rural transport networks. Ericsson will supply its next generation transport solution including software, hardware and support services, contributing to Telstra’s network transformation program.

The Ericsson transport deal will provide significant capacity expansions up to 10Gbps through the use of optical (SDH/DWDM) and radio (PDH/SDH) technology. The upgraded capacity in Telstra’s network will improve consumer access to high speed internet, video conferencing, music on demand and video streaming.

It also allows Telstra to increase the flexibility, capacity and resiliency of their Next Generation IP Network. This combination will underpin a variety of Next Generation Services enabling Telstra to drive new revenues and extending their competitive advantage.

Bill Zikou, CEO for Ericsson Australia & New Zealand said he was proud to extend the company’s long-standing strategic partnership with Telstra and provide IP-enabled services to Australians.

“Enabling up to 10 Gbps connections between Telstra’s IP core routers, this technology will allow Telstra to expand its network capacity in order to meet the rapid growth in broadband services usage,” Zikou said.

This deal also 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 full service broadband solutions - including leading-edge microwave and optical transport networks as well as broadband access and IMS.

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.



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