Xfera selects Ericsson for 3G network deployment in Spain

August 2, 2006

Xfera, the fourth Spanish mobile operator and a subsidiary of TeliaSonera, has reached an agreement with Ericsson for the supply of radio, network and service equipment plus all installation services for this equipment to ensure the launching of 3G mobile telephone operations before the end of the year, following the requirements made by the Ministry of Industry. The agreement ensures Xfera with a population coverage of 26 percent before the end of the year, slightly superior to the requirements made by the Ministry of Industry.

"This agreement with Ericsson is our first milestone since we re-launched the project in June. Also, we have reached the agreement before the planned deadline and in line with the estimated investments made in our strategic plan", says Johan Andsjo, President of Xfera.

The new agreement with Ericsson is in addition to an existing contract between Xfera and Ericsson, and both agreements in total include the technical resources needed for 2,000 sites which encompass a population coverage of 40 percent with Xfera's own quality network. Additionally there is an option for further 1,500 sites during a 3 year period.

Johan Andsjo points out: "We placed an earlier order with Ericsson for 450 nodes and we are working hard to ensure that Spain will have a new and competitive mobile telephone offer before the end of the year."

Since the June announcement of the plans, TeliaSonera's project team, comprising competencies within start-up operations, products and services, mobile networks, marketing and communications has commenced its work. Marketing and services plans have been fine-tuned in order to be able to launch commercially at end of 2006 based on a UMTS network including the seven largest Spanish cities in combination with national GSM roaming.