According to the contract, Ericsson will upgrade parts of Telecom Egypt's core network of circuit-switched technology, based on AXE-10 exchanges, with a future-proof, IP Telephony Softswitch solution. The solution, based on the combination of Ericsson's Telephony Softswitch solution and Cisco's 12000 Series routers, allows Telecom Egypt to migrate its Public Switched Telephony Network (PSTN) to a Voice over IP network with minimal risk while building a platform for new IP-based services. Ericsson will provide end-to-end integration of the Ericsson-Cisco solution and related support services.

With this contract, Telecom Egypt is taking the first step towards establishing a single IP core network, including interoperability between softswitches and the consolidation of carrier-class services. The Ericsson-Cisco solution will cover a part of the fixed-telephony network, including local and transit network layers.

Dawlat El Badawi, Deputy Chairman for Planning at Telecom Egypt, says: "Upgrading our network to IP will give us the ability to deliver new and innovative services to our customers and to increase our competitiveness in the market while re-using our existing infrastructure."

Johan Lallerstedt, Head of Ericsson Egypt, says: "One reason why Telecom Egypt opted for the Ericsson-Cisco solution is that it will help speed customer adoption of more efficient and profitable multi-service networks. The capacity and scale of the Telephony Softswitch solution also allows large cost savings through network consolidation."

Yasser Elkady, Cisco Systems' General Manager, Middle East - North Africa and Levant Region, says:  "We're delighted that the industry-leading strengths of Ericsson and Cisco will help Telecom Egypt to realize the tremendous opportunities presented by an IP Next Generation Network for its operation and its customers."

The Ericsson-Cisco solution gives Telecom Egypt a secure migration path along which they can evolve their circuit-switched network to a multi-service network. It is capable of carrying large and growing volumes of voice and data traffic and enables integrated traditional fixed telephony with IP-based broadband traffic on a single network.

Ericsson and Cisco formed a strategic alliance in April 2004. Together, the two companies are committed to providing wireline operators with carrier-class IP-based solutions, helping speed the adoption of more efficient and profitable service networks. As a part of the agreement, the two companies jointly define, integrate and offer multi-service network solutions.

Ericsson Media Relations

Phone: +46 8 719 6992

E-mail: press.relations@ericsson.com

Telecom Egypt (TE), Egypt's incumbent telecommunications operator, was established in 1998 to replace the former Arab Republic of Egypt National Telecommunication Organization (ARENTO). The company has a fixed-line subscriber base in excess of 9 million subscribers, making it the largest fixed-line provider in the Middle East and Africa.

Ericsson Telephony Softswitch solution is a commercially proven system that maintains and extends operator revenues. It provides a low-risk evolution of existing circuit-switched networks to an IP multi-service platform. It offers operators the opportunity to utilize network resources for next-generation services in the most cost efficient way, while continuing to profit from telephony services. More than 40 operators worldwide have selected Ericsson for their Telephony Softswitch solution.