Ericsson and Celcom (Malaysia) Sdn Bhd has signed a USD 170 million (SEK
1,500 million) agreement for Celcom's network expansion. The scope of the
agreement is for the supply of present and future communications equipment
The agreement initially encompasses GSM system infrastructure and services
to meet the rapidly increasing subscriber base of Celcom. This expansion
will enable Celcom to enhance coverage and offer increased capacity in its
GSM network. Subscriber growth has been especially rapid since the
introduction of pre-paid services by Celcom in 1998.
In the continuous endeavor to make Celcom the premier operator in
Malaysia, Ericsson and Celcom have agreed to make commercial and financial
commitments for the enhancement of Celcom's future network from the
present GSM network - toward third generation (3G), based on WCDMA.
With this agreement, Celcom also has the flexibility to gain a competitive
edge, as Malaysian subscribers demand more sophisticated wireless datacom
services. Celcom will purchase several of the latest solutions from
Ericsson's GSM portfolio, like its open GPRS and WAP system, GSM on the
Net and WISE High-Speed Internet solution.
Celcom's focus in the wired IP and datacom area will also be addressed. In
December 1999, Celcom was the first operator in Malaysia to invest in
Ericsson's robust IP Telephony (IPT) system. The system, already deployed
in more than 40 countries, for example enables carrier-class voice calls
over an IP network. Together with this previous investment, today's move
will also enable Celcom to offer a broader range of IP and datacom
services to its subscribers.
Ericsson is the leading provider in the new telecoms world, with
communications solutions that combine telecom and datacom technologies
with freedom of mobility for the user. With more than 100,000 employees in
140 countries, Ericsson simplifies communications for its customers -
network operators, service providers, enterprises and consumers - the