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ERICSSON AND RELIANCE TO JOINTLY IMPLEMENT VIDEO-ON-DEMAND FIELD TRIALS FOR THE U.S. MARKET

 RICHARDSON, Texas, and CLEVELAND, Jan. 14 /PRNewswire/ -- Ericsson Network Systems Inc., Richardson, Texas, and Reliance Comm/Tec Corporation, Cleveland, have formed a joint team to define, develop and implement Video-on-Demand field trials for the U.S. market. The team will combine the technical and marketing strengths of Ericsson and Reliance by bringing together Ericsson's ATM switching and access expertise with Reliance Comm/Tec's Next Generation Digital Loop Carrier (NGDLC), Hybrid Fiber Coax and Fiber-in-the-Loop (FITL) access experience. The team will also work with other Video-on-Demand system components suppliers as necessary to provide customers with full service Video-on-Demand solutions. The team will be based in the Dallas- Ft. Worth Metroplex area.
 Video-on-Demand offers services to consumers such as movies on demand, interactive network video games, home shopping and education. Video-on-demand and future multi-media services will be prime sources of revenue for existing telephone companies, competitive access providers and cable television companies. The joint Ericsson/Reliance team will be looking for participants from among these groups for field trials of Video-on-Demand capabilities.
 "The Ericsson/Reliance team is uniquely positioned to pursue the opportunities for Video-on-Demand and future multi-media services. It is a logical extension of Reliance's existing strength in access products and experience in broadband multi-media networks," said Dudley P. Sheffler, president of Reliance Comm/Tec.
 "Video-on-Demand and multi-media are areas of strategic importance for Ericsson, and we have found field trials to be an effective way to test the technical and marketing assumptions behind new capabilities. The Ericsson/Reliance team will offer our customers unsurpassed depth and breadth of technical expertise in this area," said Bjorn Hemstad, president of Ericsson Network Systems, Richardson, Texas.
 Ericsson is an acknowledged leader in switching, radio and networking, with unique experience in transforming technology into competitive systems. Ericsson's ATM products have been selected and used for several broadband trials in Europe, such as trials in Italy, Germany, Spain and Sweden. Its AXE system is the world's most widely- used public switching system, with more than 70 million lines in service or on order in more than 100 countries. Ericsson cellular mobile communications technology supports over 40 percent of the world's cellular networks. Ericsson Network Systems is based in Richardson, Texas.
 Reliance Comm/Tec Corporation is a recognized leader in local loop products and services, offering advanced technologies to the telecommunications industry worldwide. Its NGDLC DISC-S product has over one million lines currently deployed among network operators. The company specializes in transmission, power, outside plant and systems integration capabilities; test systems; network design, engineering and installation services. Reliance Comm/Tec is a wholly owned subsidiary of Reliance Electric Company (NYSE: REE), with headquarters in Cleveland.
 AXE is a registered trademark of Telefonaktiebolaget LM Ericsson.
 DISC-S is a registered trademark of Reliance Comm/Tec Corporation.
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 /CONTACT: Stephen A. Van Oss, director of investor relations, of Reliance Electric Company, 216-266-5809 or fax 216-266-1915; Toby Hoopes, manager marketing communications, of Reliance Comm/Tec, 817-540-8245 or fax 817-540-9766; or Kathy Egan, director media relations, of Ericsson, 212-685-4030 or fax 212-213-0159/
 (REE)


CO: Ericsson Network Systems Inc.; Reliance Comm/Tec Corporation;
 Reliance Electric Company ST: Ohio, Texas IN: TLS SU:


KL -- CL005 -- 2066 01/14/94 09:32 EST
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Publication:PR Newswire
Date:Jan 14, 1994
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