Cooperation between the two companies will enable Pannon GSM to continue to lead the mobile data evolution in Hungary. Pannon customers in Budapest will be able to enjoy the benefits of the 3G network in the second half of 2005. The network will be rolled out to other parts of Hungary in late 2005 and early 2006. Pannon and Ericsson signed a contract also on the modernization of Pannon's GSM EDGE network.

"Pannon GSM continues its leadership in mobile data services. Our company made the first steps to launch GPRS and EDGE, and now we take the lead in the 3G era, too: we have purchased the most valuable concession package from the government recently. We want to offer the highest quality services and all the benefits of broadband communications to our customers", said Ove Fredheim, CEO of Pannon GSM.

The UMTS radio network delivered by Ericsson is a future proof solution since it is already prepared for the migration to HSDPA (high-speed downlink packet access), the next evolution in 3G. Today the network already allows 384 kbit per second data rate for best quality and functionality of services and applications like video telephony, video streaming and high-speed data download.

"Ericsson offers true end-to-end 3G and EDGE solutions that lay the foundation for a smooth and cost-effective migration path from second-generation GSM networks. Due to the local competence and expertise, Pannon GSM can deploy 3G quickly and cost effectively," said Staffan Pehrson, president of Ericsson Hungary.