Ericsson and Vodafone Sign Collaboration Agreements to Develop 3G.

STOCKHOLM, Sweden--(BUSINESS WIRE)--April 28, 1999--

Ericsson and Vodafone announce agreements for extensive collaboration between the two companies to develop and evaluate 3G (third generation) wireless technologies that will introduce to users the benefits of mobile multimedia communications.

Both companies are committed to developing UMTS (Universal Mobile Telecommunications System) - a European variant of IMT-2000, also known as WCDMA (Wideband Code Division Multiple Access) - and joint participation in further standardization processes.

This collaboration encompasses early extensive technical experiments and follows separate announcements by the two companies on 3G/UMTS trials. It recognizes the benefit of close co-operation between Ericsson as a world-leading manufacturer of GSM equipment and Vodafone as a world-leading operator.

Vodafone announced their Wireless Information Superhighway trials to investigate the performance of wideband mobile multimedia last autumn.

Ericsson launched a 3G/UMTS testbed in Guildford in the UK in February this year with the UK's first public demonstration of WCDMA live multimedia calls. The capabilities of this experimental system have been developed by Ericsson, and performance evaluated jointly with various participants.

Vodafone has actively participated in this early phase to further understand the potential strengths of the new technology in delivering 3G services, and sees great value in the results of these joint trials to all potential 3G operators.

Building on the achievements of the Guildford testbed, Ericsson is installing further WCDMA base stations around Newbury. These will form a key part of the Vodafone multi-party trials.

"The establishment of these joint trials marks another significant milestone in the long and successful relationship between Ericsson and Vodafone, which has covered first TACS, then GSM and now third generation network infrastructure," says Nils Grimsmo, Ericsson's UK Managing Director. "The two companies have been working together for some time on a broad range of technical solutions for the introduction of a 3G network such as the core network architecture, transmission, services and integration with GSM. Through this continuing co-operation both companies expect to resolve outstanding issues well before commercial deployment."

"Vodafone welcomes the introduction of Ericsson WCDMA equipment to our Newbury trials," says Alan Harper, Vodafone Ltd's Managing Director. "We are delighted to be commencing trials well before the forthcoming 3G licence auctions, so that we can understand the practical challenges of deploying WCDMA. Joint early experience will also help us align our inputs to 3G standardization to ensure these are completed in a timely fashion to allow commercial service to start as soon as possible."

Ericsson is today leading the 3G development and has set up WCDMA experimental systems in the UK, Japan, Germany, Italy, Sweden and China. These full-fledged 3G systems are used to experiment with delivery of new services, leveraging Ericsson's more than 10 years of research in 3G technologies. Ericsson is also leading with experimental systems for multiple technologies, like the first systems focusing on EDGE.

Ericsson is ideally positioned to support any operator anywhere to migrate to 3G systems - regardless of technology heritage or technology choice. Ericsson will be offering 3G systems based on WCDMA, cdma2000, and EDGE - being the only supplier with a complete portfolio for second and third generation systems.

Ericsson is the leading provider in the new telecoms world, with communications solutions that combine telecom and datacom technologies with freedom of mobility for the user. With more than 100,000 employees in 140 countries, Ericsson simplifies communications for its customers - network operators, service providers, enterprises and consumers - the world over.

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