Ericsson signs first LMDS contract.

STOCKHOLM, Sweden--(BUSINESS WIRE)--July 6, 1999--

Ericsson has signed the first contract for its wireless broadband access system, MINI-LINK BAS, providing users with high-speed wireless IP and telecom services. The Nordic operator has selected Ericsson as the preferred supplier for their upcoming LMDS offerings.

This follows the award of spectrum licenses in the US and Europe, opening up the market for fixed wireless services via Local Multipoint Distribution Systems (LMDS). LMDS is based on new technology that uses ultrahigh-frequency wireless transport of services.

The contract is a breakthrough for Ericsson on the LMDS market, and signals Ericsson's intention to aggressively participate in expansion of this developing wireless market.

Within the contract, Ericsson will provide its new access system that is optimized for wireless IP-based services. The system smoothly handles bandwidth-demanding IP services such as high-speed Internet, LAN-LAN interconnection, new real-time IP services and video conferencing together with telephony services. The MINI-LINK BAS (Broadband Access System) will be in full commercial operation within six month, delivering wireless access at speeds up to 37.5 Mbps.

"This is a significant step for Ericsson into the growing area of wireless access solutions, an area with a strong customer interest," says Sivert Bergman, Executive Vice President, Ericsson Microwave and head of business unit Transmission Solutions. "The contract confirms that Ericsson's wireless MINI-LINK BAS concept meets customer's requirements for high-speed Internet access and other services."

With MINI-LINK BAS, Ericsson is capitalizing on its world-leading role in microwave transmission - with more than 170,000 MINI-LINK units installed in more than 100 countries. To address the emerging LMDS market Ericsson will leverage on its existing flexible production capacity and strong customer base in transmission 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.

Please visit Ericsson's Press Room at: http://www.ericsson.se/pressroom

Additional Information

The point-to-multipoint MINI-LINK BAS offering is based on Ericsson's proven point-to-point MINI-LINK transport network solutions. Combining Ericsson's strength in mobile, microwave transmission and datacom technologies, it was launched for the European market at CeBIT in March, 1999.

Ericsson already holds a strong position with its MINI-LINK product family with one third of the world market - more than double that of its nearest competitor. It is used to transport services in wireless and wireline networks, for operator as well as enterprise use.

With the MINI-LINK BAS system, operators can dynamically provide users with instantaneous bandwidth allocation appropriate to their need, using available spectrum efficiently. By using shared transmissions with statistical multiplexing, operators can efficiently offer broadband access at an attractive cost level. Operators will also achieve cost savings when implementing new wireless access networks and can gain market advantage on competitive markets with a rapid rollout.

MINI-LINK BAS is a complete end-to-end solution, from customer services to backbone network solutions. Open interfaces and standards means that it can easily be integrated with other vendors' IP and ATM products as well as with Ericsson's IP router family and ATM packet switching line. The system operates in the 21 to 31 GHz frequency band, including European ETSI bands, US LMDS bands and Canadian bands.

For more information on Ericsson's new wireless broadband access system, see press release on: http://www.ericsson.se/pressroom/Archive/1999Q1/19990316-0008.html