Telstra partners with Ericsson to launch 4G/LTE in Australia

• World's first integrated 1800MHz LTE and HSPA 42Mbps network
• First 4G network in Australia, Ericsson sole vendor of LTE and Evolved Packet Core (EPC) network
• Improved capacity and speed in Telstra's Next G mobile network covering 99 percent of the population
• Upgrade to meet mobile broadband growth and increased penetration of data-hungry applications on smart phones and tablets

A new contract between leading Australian operator Telstra and Ericsson (NASDAQ: ERIC) will benefit the Australians currently enjoying Telstra's Next G mobile network covering more than 99 percent of the population.

Announcing the plan at Mobile World Congress in Barcelona, Telstra's Chief Executive Officer David Thodey said the company would upgrade its existing Next G network with 4G/LTE technology in the central business districts of all Australian capital cities and selected regional centres by the end of 2011.

"Telstra is proud to again be a technology leader, providing Australians with leading-edge mobile broadband services on the world's largest national mobile network," Thodey said. "The new network will provide Australians with faster data speeds, high-quality video conferencing and faster response times when using mobile applications or accessing the internet. It will also help Telstra meet future demand for mobile data, which is doubling every year as customers move to adopt data-hungry smartphones, mobile modems and tablets."

Ericsson President and CEO Hans Vestberg said: "Ericsson and Telstra have a long history of innovative network partnerships and we are proud to bring the next generation of mobile broadband to Australia. Telstra's Next G network is globally recognized as an advanced, world-class service and our LTE/EPC network will enable Telstra to continue to deliver a superior end-user experience for both existing and future Next G subscribers."

The upgrade will use the company's existing 1800MHz spectrum to bring 4G to areas where traffic demand is most concentrated. It will be integrated with Telstra's existing HSPA Evolution service, which uses the 850MHz spectrum range.

By the end of 2011, Telstra will offer its customers LTE mobile broadband devices that operate seamlessly across the 850MHz and 1800MHz spectrum ranges, giving customers the benefits of 4G where it is available.

Ericsson will deploy all 4G/LTE radio sites with its new multi-standard radio base station, RBS 6000, and upgrade and expand Telstra's existing packet core network into an EPC network, supporting the new LTE radio network. Services included in the contract are network roll out, design, integration and learning services.

Notes to editors:

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Ericsson is the world's leading provider of technology and services to telecom operators. Ericsson is the leader in 2G, 3G and 4G mobile technologies, and provides support for networks with over 2 billion subscribers and has the leading position in managed services. The company's portfolio comprises mobile and fixed network infrastructure, telecom services, software, broadband and multimedia solutions for operators, enterprises and the media industry. The Sony Ericsson and ST-Ericsson joint ventures provide consumers with feature-rich personal mobile devices.

Ericsson is advancing its vision of being the "prime driver in an all-communicating world" through innovation, technology, and sustainable business solutions. Working in 175 countries, more than 90,000 employees generated revenue of SEK 203.3 billion (USD 28.2 billion) in 2010. Founded in 1876 with the headquarters in Stockholm, Sweden, Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ New York.

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