Ericsson and Telcel sign agreement to deploy first GSM/GPRS in Mexico.

Business Editors

STOCKHOLM, Sweden--(BUSINESS WIRE)--Dec. 21, 2000

Ericsson (NASDAQ:ERICY) and Telcel have announced an agreement for the deployment of a nationwide GSM/GPRS network in Mexico and to continue the rapid rollout of TDMA voice service.

The agreement will provide Telcel with the largest cellular network in Latin America, combining TDMA and GSM/GPRS technology.

Under the terms of the turnkey agreement, Ericsson will build, operate and transfer to Telcel a complete GSM/GPRS voice and mobile Internet solution. The first phase of the new network is scheduled to be in commercial operation by the third quarter of 2001, with transfer of the system planned for mid 2002. Telcel is the first service provider in Mexico to deploy GSM/GPRS.

"This agreement includes the complete Ericsson GSM portfolio from pre-paid voice to advanced GPRS mobile Internet with applications enablers, mobile positioning and more," said Roland Nordgren, CEO of Ericsson Mexico.

Under the agreement, Telcel will also continue to expand its TDMA network. Telcel currently has more than 10 million subscribers.

"We are delighted to continue our successful partnership with Telcel that started over ten years ago," adds Roland Nordgren. "This new agreement will result in Telcel becoming the first operator to deploy GSM/GPRS in Mexico, with the largest GSM/GPRS network in Latin America. This is one of the biggest contracts signed by Ericsson in recent years."

"An aggressive roll-out during 2001 is key for us, and we selected Ericsson as the turn-key supplier both due to their industry-leading solutions and their proven capability to provide turn-key solutions," said Daniel Hajj, CEO of Telcel.

"The move is particularly important as we look ahead to third generation services and the future implementation of EDGE with UMTS as a next step," added Daniel Hajj. "The new GSM/GPRS network will provide Telcel with enhanced services that will satisfy the ever more demanding consumer in Mexico."

Ericsson is the leading communications supplier, combining innovation in mobility and Internet in creating the new era of mobile Internet. Ericsson provides total solutions covering everything from systems and applications to mobile phones and other communications tools. With more than 100,000 employees in 140 countries, Ericsson simplifies communications for customers all over the world.

Read more at http://www.ericsson.com/pressroom

About GSM/GPRS from Ericsson

GSM is the world's most widely deployed wireless communications standard. Ericsson is the global market leader in GSM, with 40 percent of the world's more than 400 million GSM subscribers connected by Ericsson systems. More than 146 operators in some 80 countries around the world rely on GSM systems from Ericsson.

Ericsson is the world leader in GPRS, with more commercial agreements than any other supplier. It supports operators around the world with infrastructure, GPRS phones with Bluetooth, and ready-to-go mobile Internet applications, enabling early commercial launch of GPRS systems. Customers that have launched live GPRS systems so far include Vodafone in the UK, Telstra in Australia, SmarTone in Hong Kong and GMCC in China.

The Ericsson GPRS solution is future-proofed for third generation (3G) systems and is fully compatible with the GPRS specifications approved at SMG 31(Special Mobile Group within ETSI standardization organization).

To support the early introduction of commercial GPRS services, Ericsson is ramping up the shipment of the first GPRS phone, the R520, to larger volumes supporting operators who already have implemented Ericsson's GPRS solutions. The R520 phone supports GSM 900/1800/1900 frequencies, allowing communication on one phone throughout 120 countries on five continents. The R520 is the first GPRS phone with Bluetooth and the first phone in the world supporting WAP 1.2.1. It also supports Chinese characters.