Ericsson Receives $77 Million Order For D-AMPS IS-136 Network Expansion in Argentina.

STOCKHOLM, Sweden--(BUSINESS WIRE)--August 18, 1998--Ericsson is to supply wireless network infrastructure equipment worth up to $77 million to Telecom Personal (TP) in Argentina, to expand a D-AMPS/AMPS wireless communications network serving the north of the country. By the end of 1998, the capacity of the network is expected to have been increased by 50% to 750,000 subscribers.

Currently, the Ericsson-supplied network has around 490,000 subscribers. In recent months, it has been readied for the introduction of new digital wireless services such as Short Messaging Services (SMS), and for PrePaid Services - which are expected to trigger strong subscriber growth.

TP and Ericsson have also signed a Memorandum of Understanding covering pilot trials of CDPD (Cellular Digital Packet Data) for services such as wireless e-mail. CDPD is an Internet-compatible wireless data service that can be added on to an existing D-AMPS IS-136 network, without requiring additional frequency spectrum. Wireless data transmission is expected to grow rapidly and this sophisticated CDPD data capability will position TP well to offer these services.

TP is one of three operators that together form the Personal Communication National Network, which operates mobile phone services across Argentina in the 800MHz 'A' Band. The territory covered by TP is approximately 1.3 million square kilometers, with 15 million inhabitants.

The other operators are Miniphone (serving the Buenos Aires metropolitan area) and Telefonica Comunicaciones Personales (TCP), serving the south of the country.

All three networks are based on the D-AMPS IS-136 and AMPS wireless standards that have become the predominant platform for wireless phone services across Latin America and North America. Services currently cover every town in Argentina with more than 500 inhabitants, and there are approximately 1,350,000 subscribers in the three networks.

Roaming agreements between the three operators mean that subscribers can continue to use their phones as they travel throughout Argentina. Telecom Personal also has roaming agreements with D-AMPS operators in all the neighboring countries.

There are over 90 million subscribers using D-AMPS/AMPS networks worldwide. D-AMPS was the first technology to be commercially available as a dual- band (800/1900 MHz) and dual-mode (analog-digital) technology. Approximately 14 million subscribers are already using D-AMPS digital services.

Ericsson's 100,000 employees are active in more than 130 countries. Their combined expertise in fixed and mobile networks, mobile phones and infocom systems makes Ericsson a world-leading supplier in telecommunications.

    CONTACT:  Kathy Egan
               Per Bengtsson
               212/685-4030