Ericsson signs major D-AMPS IS-136 agreement valued at $300 million for Mexico's first 1900MHz network.

STOCKHOLM, Sweden--(BUSINESS WIRE)--September 1, 1998--Ericsson signed a frame agreement, valued at $300 million, with Telcel to build Mexico's first 1900MHz wireless communications network and expand their 800MHz network.

Telcel, Mexico's largest wireless network operator, will construct a nationwide dual-band/dual-mode (800MHz/1900MHz, analog/digital) network employing their new 1900MHz licenses recently won in each of the nine Mexican regions.

Telcel will significantly boost network capacity by integrating the1900MHz and 800MHz channels in a common infrastructure. This is being done in preparation for the rapid subscriber growth expected when Calling Party Pays legislation is implemented towards the end of the year. This sophisticated technique allows calls in progress to be handed off seamlessly between the 800MHz and 1900MHz wireless channels in the same network. Users will not be aware of the change in frequency.

Jan Wreby, Vice President and General Manager of Ericsson said,"This latest expansion project makes Telcel one of the first operators in the world to take full advantage of the dual-band/dual-mode capabilities of the D-AMPS IS-136 standard. It is a sophisticated platform that allows operators to treat spectrum as a shared network resource, with a common set of services across both frequency bands."

Telcel's wireless network has been in operation since 1989 and has an existing subscriber base of 1.6 million. Over 50% of the subscribers use the prepaid service which has been one of the key contributors to their rapid subscriber growth.

Telcel has experienced subscriber growth at a rate of 50% over the last 8 months and expect this growth rate to continue over the next few years. This order is a strategic move. D-AMPS is flexible and feature rich technology that enables operators to tailor service offerings for their customers.

Neighboring countries have also adopted the D-AMPS standard, providing seamless roaming for users throughout North and South America.

There are over 90 million subscribers using D-AMPS/AMPS subscribers 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: Dominique Jodoin, Vice President Sales & Market
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              Ericsson Radio Systems, Cellular Systems - American
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              Eric sterberg, Communications Director,
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              Kathy Egan, Per Bengtsson
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