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Ericsson to provide managed services for T-Mobile UK and 3 UK to accelerate 3G network consolidation

Mobile Broadband Network Limited (MBNL), the 50:50 joint venture formed by 3 UK and T-Mobile UK to integrate and manage their 3G radio access networks (RAN), has selected Ericsson (NASDAQ:ERIC) to provide managed services to complete the consolidation of their 3G infrastructure. Under the terms of the contract, about 220 T-Mobile staff have transferred to Ericsson.

Ericsson will be responsible for the network design and deployment requirements of the consolidation program, which will result in the creation of an integrated 3G network providing close to complete population coverage for 3G services. It will also reduce the number of radio sites from approximately 18,000 sites to 13,000, providing both environmental benefits and significant cost savings while simultaneously improving coverage.

In addition to the consolidation and decommissioning of sites, Ericsson will take responsibility for the acquisition and building of new sites, capacity management, equipment swaps and upgrades to transmission facilities. The five-year contract includes management of the ongoing growth and optimization of the 3G RAN as well as T-Mobile's 2G access network.

Approximately 220 operations staff from T-Mobile have transferred to Ericsson, further strengthening its existing UK managed services relationship with MBNL, 3 UK and T-Mobile UK.

In November 2008, Ericsson was awarded a managed services contract for the operation of the integrated 3G networks and T-Mobile's 2G network.

T-Mobile UK CTO Emin Gurdenli says: "Our partnership with Ericsson will accelerate network integration activities and keep us on track to achieve our goal of creating the UK's most extensive 3G network by 2010, providing consumers across the UK access to 3G services. The provision of universal access to high-speed broadband services by 2012 is the centerpiece of the Government's Digital Britain report. The realization of our consolidated 3G network will open the way for mobile broadband to play an increasingly important role in achieving this target."

3 UK CTO Graham Baxter says: "This is an ambitious program to provide an effective mobile broadband network with the capacity to deliver voice and internet services to a very significant proportion of the UK population. Ericsson has played an important role in the development of 3G networks around the world and will now play a crucial role in the development of the UK's best 3G network. This network consolidation and the benefits it brings will make a real difference for mobile consumers, many of whom will find that this program will bring them access to the internet for the first time."


Mats Granryd, Managing Director, Ericsson UK, says: "I am thrilled that we have been entrusted with the responsibility of delivering this comprehensive program. It is exceptional in terms of its scale and I am delighted that this new contract further extends our relationship with MBNL."

Jan Frykhammar, Senior Vice President and Head of Business Unit Global Services, Ericsson, says: "I am proud that we are further extending our relationship with MBNL. This is a partnership which illustrates new ways where Ericsson can deliver results from managed services. Today we are managing networks that together serve over 250 million subscribers on a daily basis. This builds on our extensive experience in managed services, our tools, methods and processes that are used globally, and that fulfill operators' needs for network cost and performance management."

This contract is the seventh managed services contract announced in the UK by Ericsson.

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