ERIC: Ericsson signs major deal with TelstraClear to build 3G/HSPA network in New Zealand

Ericsson (NASDAQ:ERIC) has been chosen as the sole supplier to build and integrate TelstraClear's 3G/WCDMA/HSPA high-speed mobile broadband network in Tauranga, New Zealand.

Under the agreement Ericsson will have turnkey responsibility for building the network, providing network design, deployment and integration services, including packet core, radio network and service layer.

The network will use 3G/WCDMA and HSPA technology. HSPA enables TelstraClear to deliver true broadband speeds to laptops and PCs and introduces its customers to a new generation of mobile broadband services, including mobile TV and video, and music-related services, with true mobility. Ericsson's service aware packet core solution assures delivery of telecom-quality broadband services that will help TelstraClear to increase ARPU (average revenue per user) and reduce churn.

TelstraClear Chief Executive Dr Allan Freeth says appointing a vendor is a critical milestone for the development of the service. "Ericsson's appointment ensures we have a world leading provider of proven mobile technology and we can leverage off its comprehensive work with our shareholder Telstra in Australia".

General Manager for Ericsson New Zealand Steve Inglis says Ericsson is delighted to be extending an already long standing-relationship with TelstraClear, and drive industry growth.

"Ericsson has been the prime integrator and business partner for TelstraClear's world-class IP network for some years. This new, exclusive contract and the work we are doing with Telstra in Australia are a reflection of the strength of Ericsson's capabilities and global leadership in mobile technology, broadband offerings and services."
The network will be launched in mid-2007 in Tauranga.

In December 2004, Ericsson was selected by Telstra in Australia as its exclusive 3G/WCDMA partner for the next five years.

Ericsson's HSPA solution will in the future let operators more than double their system capacity and cuts response times for interactive services. On average, users will be able to download up to four-times faster than with current 3G connections, and 20-times faster than a GSM/GPRS connection.