Telstra chooses Ericsson for future 3G network

December 28, 2004

Telstra announced that it had chosen Ericsson Australia as the vendor to develop its 3GSM mobile capacity for up to the next five years.

The agreement covers a number of contracts to develop Telstra's core GSM mobile network to 3G capability (3GSM) and to build additional Radio Access Network infrastructure.

Telstra Technology Innovation and Product Group Managing Director, Mr Ted Pretty, said the contracts, worth more than $100 million over five years, were closely contested.

"We had a number of very high quality and competitive tenders to assess but at all times we had to consider who could provide the best overall solution for Telstra," he said.

Mr Pretty said Ericsson met Telstra's special requirements and timeframes to provide a 3GSM service that:

· will automatically handoff to existing GSM services if a user moves away from the 3GSM coverage area; and

· can manage two core networks operating on the one Radio Access Network.

He said: "These contracts complement the Telstra-Hutchison 3GSM network sharing arrangement which gives Telstra access to a fully optimised, fully operational network across five capital cities from 1 July 2005, and provides a way forward to increase 3GSM coverage as demand requires."