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Ericsson and 3IC in strategic alliance for distribution of CDMA wireless data equipment
Posted: 12-Jan-2001 [Source: Ericsson press release]

[Ericsson's cdmaOne IWF to be distributed to the Korean market by 3IC.]

Today, Ericsson announced that it has signed a strategic agreement with 3IC for the distribution of Ericsson's wireless data equipment. The terms of the agreement include capital investment by Ericsson in return for a minority equity stake in 3IC. According to the agreement, 3IC will distribute Ericsson's CDMA data products including the cdmaOne Interworking Function (IWF) and the cdma2000 Packet Core Network (PCN) to the Korean market. In addition, 3IC will also handle certain system integration and technical support of Ericsson's data equipment sales.

"Ericsson's leading data products are very attractive for the advanced Korean CDMA operators," said Bubba Rhee, President and CEO of 3IC. "Through minimal investment, mobile operators can now offer carrier class data services in existing networks, that will generate additional revenue and help ensure subscriber loyalty." "We are excited to be strengthening Ericsson's position with Korean operators through our relationship with 3IC," added Ake Persson, President of Ericsson CDMA Systems. "The strategic alliance between Ericsson and 3IC provides both companies with expanded business opportunities as we are able to support the Korean operators' need for enhanced data services." Ericsson's IWF is a wireless data access solution that offers operators the most resilient, scalable and cost-effective platform for delivering end-to-end mobile data solutions over CDMA networks. The IWF is based on the industry standard interoperability specification (IOS) and can be integrated into any operator's network. As the CDMA radio network evolves toward 3G, the IWF has a smooth migration path with an easy software upgrade. Through this upgrade, the IWF becomes a key component of the cdma2000 Packet Core Network. This provides mobile operators maximum use of their capital investment and further cost savings. The PCN enables end-to-end IP services in cdma2000 networks, delivering "always online, always connected" functionality and direct access to IP-service networks. The PCN is a part of Ericsson's total cdma2000 solution.

By enabling the mobile Internet with an industry leading cdma2000 solution Ericsson opens up new markets and revenue opportunities for operators. cdmaOne is one of the fastest growing wireless technologies in the world, currently serving more than 71 million subscribers. Developed by the industry's premier CDMA experts, Ericsson's CDMA solutions offer operators unique performance advantages and smooth evolution to 3G by leveraging the full strength of Ericsson's expertise in wireless, IP/datacom and mobile Internet technologies.

Ericsson is the leading communications supplier, combining innovation in mobility and Internet in creating the new era of mobile Internet. Ericsson provides total solutions covering everything from systems and applications to mobile phones and other communications tools. With more than 100,000 employees in 140 countries, Ericsson simplifies communications for customers all over the world.

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