Ericsson and Celcom Signs Expansion Agreement
Including Transition To 3G
STOCKHOLM, Sweden--(BUSINESS WIRE)--February 9, 2000-- (NASDAQ:ERICY - news) Ericsson and Celcom
(Malaysia) Sdn Bhd has signed a $170 million agreement for Celcom's network expansion. The scope of the agreement is for
the supply of present and future communications equipment and services.
The agreement initially encompasses GSM system infrastructure and services to meet the rapidly increasing subscriber base of
Celcom. This expansion will enable Celcom to enhance coverage and offer increased capacity in its GSM network. Subscriber
growth has been especially rapid since the introduction of pre-paid services by Celcom in 1998.
In the continuous endeavor to make Celcom the premier operator in Malaysia, Ericsson and Celcom have agreed to make
commercial and financial commitments for the enhancement of Celcom's future network from the present GSM network -
toward third generation (3G), based on WCDMA.
With this agreement, Celcom also has the flexibility to gain a competitive edge, as Malaysian subscribers demand more
sophisticated wireless datacom services. Celcom will purchase several of the latest solutions from Ericsson's GSM portfolio,
like its open GPRS and WAP system, GSM on the Net and WISE High-Speed Internet solution.
Celcom's focus in the wired IP and datacom area will also be addressed. In December 1999, Celcom was the first operator in
Malaysia to invest in Ericsson's robust IP Telephony (IPT) system. The system, already deployed in more than 40 countries, for
example enables carrier-class voice calls over an IP network. Together with this previous investment, today's move will also
enable Celcom to offer a broader range of IP and datacom services to its subscribers.
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: ericsson.se
Contact:
Kathy Egan
Gary Pinkham
212 685-4030
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