Ericsson and Omnipoint sign major contracts and licensing agreement.RICHARDSON, Texas--(BUSINESS WIRE)--April 16, 1996--Ericsson and Omnipoint Corporation announced today that they signed supply agreements for Personal Communications Services See PCS. (PCS (1) (Personal Communications Services) Refers to wireless services that emerged after the U.S. government auctioned commercial licenses in 1994 and 1995. This radio spectrum in the 1. ) equipment using Omnipoint's IS-661 and Ericsson's PCS 1900 technologies. Over the next five years, Ericsson could receive more than $350 million in network equipment and services as well as $100 million for purchases of IS-661 and PCS 1900 mobile telephones. Under the terms of the agreement, Ericsson will purchase a multi-million dollar license to market Omnipoint's IS-661 technology. "This contract promises great potential for us in years to come," said Bo Hedfors, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Ericsson Inc. "Omnipoint's network will cover the 27 million people in the New York Major Trading Area (MTA (1) (Message Transfer Agent or Mail Transfer Agent) The store and forward part of a messaging system. See messaging system. (2) See M Technology Association. 1. (messaging) MTA - Message Transfer Agent. ) and they are targeting to expand into other markets." The agreement is for a combination of IS-661 and PCS 1900 technologies, which both utilize GSM-based network architecture. The initial system configuration includes mobile switching centers, base station controllers and radio base station equipment as well as implementation and support services. "Having Ericsson join Nortel as our key network partners ensures that Omnipoint will have an unsurpassed wireless network for the world's premier wireless market -- New York," said George Schmitt, president of Omnipoint Communications, Inc., the Omnipoint subsidiary that operates the PCS networks. "Cooperating with Ericsson and its subsidiaries in developing and marketing IS-661 is a tremendous boost to our technology business," said Doug Smith, president of Omnipoint Corporation. During 1995, Omnipoint announced supply agreements with Nortel. When combined with this agreement, Omnipoint anticipates purchasing over $750 million worth of PCS equipment and services for the New York MTA and other markets that may be acquired. Ericsson has supplied GSM-based systems to 42 countries and is the leading supplier of GSM equipment worldwide. Omnipoint is a world leader in the commercialization of spread spectrum radio systems. Omnipoint was recognized by the Federal Communications Commission Federal Communications Commission (FCC), independent executive agency of the U.S. government established in 1934 to regulate interstate and foreign communications in the public interest. (FCC (1) (Federal Communications Commission, Washington, DC, www.fcc.gov) The U.S. government agency that regulates interstate and international communications including wire, cable, radio, TV and satellite. The FCC was created under the U.S. ) for its many innovations in PCS with the award of a Pioneer's Preference 30 MHz license for the New York Major Trading Area. Ericsson's 85,000 employees are active in more than 100 countries. Their combined expertise in switching, radio and networking makes Ericsson a world leader in telecommunications. CONTACT: ERICSSON CONTACTS: KATHY EGAN EGAN ETSI Guide Access Network EGAN Ethernet Global Access Network LARS LARS Launch and Recovery System LARS Large Animal Research Station LARS Los Angeles Riot Squad LARS Los Angeles Radiological Society LARS Light Artillery Rocket System LARS Left Add, Right Subtract (artillery fire sighting) JONSTEG 212 685-4030 OR OMNIPOINT CONTACT: JOHN GROTLAND 703 522-7778 MARK VONARX 719 548-1200 |
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