Ericsson signs breakthrough ATM contract in China

Ericsson signs breakthrough ATM contract in China Ericsson has signed a datacom contract with Shandong Sanlian Electronic Information Co. Ltd. of Sanlian Group, a back-bone enterprise association in Shandong Province supported by the provincial government. The contract covers a complete ATM Metropolitan Area Network (MAN) for Jinan, the provincial capital, and when fully installed, will be one of China's largest data networks. The order is valued at USD 10 million (SEK 82 million). Ericsson's new ATM switching platform, AXD 301, will be installed in the core of the network, that will serve more than 50,000 users. Sanlian Group is a trans-regional and inter-trade commercial group with its business covering nearly 80 trades. "The order has been won in heavy competition from other datacom suppliers and proves Ericsson's capabilities in this area. We are also very excited that Ericsson has been selected to build up one of China's largest data networks. This is clearly a breakthrough for our new ATM switching platform," says Michael Thurk, Executive Vice President and head of business unit Datacom Networks & IP Services. "The network is going to be China's most powerful MAN," says Mr. Zhang Jisheng, President of Sanlian Group. "Ericsson has a very good technical solution and we are very impressed by the performance of the AXD 301. In choosing Ericsson, their global and local presence in Shandong was also an important factor." "Sanlian Group has once again chosen Ericsson, building on the successful bilateral cooperation that began last year," said Mr. Zhang Xingsheng, Executive Vice President of Ericsson China. "However, without doubt it is the excellent performance of Ericsson ATM equipment in Sanlian's trial system and the relationship built on trust that have played the decisive role in this contract." The network consists of 13 AXD 301s in a core ATM backbone, connecting some 2,000 access nodes over high-speed (622 Mbits/s) fiber. Ericsson is using LAN- technology supplied from Bay Networks. The network will have a large number of services, such LAN-interconnect, video-on-demand, IP-telephony, Internet Access, E-mail and video broadcast. Installation, scheduled to begin in November of this year, will be phased. The first phase will be completed and providing full services in December and the entire network is expected to be in place by the first half of 1999. China is Ericsson's largest market globally. Ericsson China has more than 3,500 employees, 23 offices in different parts of the country and 8 joint ventures that provide a full range of communications solutions and 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. FOR FURTHER INFORMATION, PLEASE CONTACT Mr. Zhang Xingsheng, Executive Vice President and General Manager Region North, Ericsson China Phone: +86 10 6561 9988 Ms. Tu Min, Manager Business Development & Communications Region North, Ericsson China Phone: +86 10 6561 9988 Mr. Li Hongming, General Manager Ericsson Shandong Office, Region North, Ericsson China Phone: +86 531 6013388 Mr. Mark Tian, Press Officer Business Development & Communications Ericsson China Phone: +86 10 6463 2288 Lars Östlund, Press Relations Manager, Ericsson Infocom Systems Phone: +46 8 681 26 56, E-mail lars.ostlund@etx.ericsson.se