Ericsson signs MUSD 50 contract in Brazil

Press Release 13 April 1999 Ericssson signs MUSD 50 contract in Brazil Ericsson has signed a contract with operator Tele Norte Celular for a wireless network modernization program in Brazil, valued at more than USD 50 million (SEK 400 million) over the next three years. Tele Norte Celular, with Telesystems International Wireless (TIW) as a major shareholder, is the corporate entity that provides wireless service under the Amazonia Celular brand name. The initial phase of the contract, signed by Ericsson's local company in Brazil, Ericsson Telecomunicações S.A., will be completed during the second quarter of 1999. Over 20 new cell sites will be added to the existing network, which represents an almost 10 percent rise in the number of sites deployed and ensure capacity for the coming periods. Additionally, Tele Norte Celular plans to nearly double the number of microcells it has deployed in the region, greatly improving the quality level of its indoor coverage. The second phase of this modernization program represents the operator's desire to offer digital services, based on TDMA technology, throughout the region. This TDMA network will be a migration from the existing AMPS network, and will provide the operator with the ability to offer customers the latest in cellular technology, including new services such as caller line identification and text messaging. The last phase of the modernization during 1999 includes adding 18 new cities to the already existing cities covered in the region. Tele Norte Celular will then have coverage in over 75 cities by the end of the expansion period, thereby meeting its regulatory requirements for coverage. Tele Norte Celular provides wireless services to over 240,000 subscribers in the states of Amazonas, Para, Maranhao, Roraima and Amapa, under the brand name of Amazonia Celular. The company is engaged in a large scale modernization program to ensure that the evolving needs of its growing customer base will continue to be met. Tele Norte Celular is the sole supplier of cellular service in the region and has Ericsson as their only infrastructure supplier. There are approximately 95 million subscribers using TDMA/AMPS networks worldwide. TDMA is commercially available as a dual-band (800/1900 MHz) and dual-mode (analog-digital) technology. Over 19 million subscribers are already using TDMA digital services. TDMA already delivers most of the IMT-2000 functionality and is being further enhanced to deliver all IMT-2000 capabilities in the existing 800 and 1900 MHz frequency bands and in the new 2 GHz band. 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: http://www.ericsson.se/pressroom FOR FURTHER INFORMATION, PLEASE CONTACT Johan Wiklund, Ericsson Corporate Communications Phone: +46 70 560 0134; E-mail: johan.wiklund@lme.ericsson.se Dominique Jodoin, Vice President Sales & Market Operations Ericsson Business Unit TDMA Systems Phone: +46 8 757 2311 Lars Jehrlander, Vice President Business Operations Ericsson Telecomunications S.A. Phone: +55 11 6281 0007 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/04/13/19990413BIT00090/bit0001.doc http://www.bit.se/bitonline/1999/04/13/19990413BIT00090/bit0002.pdf