Ericsson to upgrade mobile backhaul networks in Germany and Belgium

January 31, 2012

STOCKHOLM, SWEDEN--(Marketwire -01/31/12)-

* Upgrade of mobile backhaul for KPN International subsidiaries E-Plus Group in Germany and KPN Group Belgium

* Ericsson to install more than 15,000 MINI-LINKs before the end of 2013

* Mobile backhaul increasingly important due to rapid increase in consumption of internet services

KPN International's subsidiaries E-Plus Group in Germany and KPN Group Belgium in Belgium have chosen Ericsson (NASDAQ: ERIC - News) to upgrade their mobile backhaul in Germany and Belgium over the next three years. Ericsson will install more than 15,000 MINI-LINK transmission node links in these countries before the end of 2013. The network upgrade is required to ensure that the mobile networks are as efficient as possible and can meet growing demand from mobile users. In both Belgium and Germany, there has been a rapid uptake of mobile internet services such as video and Web 2.0 applications on smartphones, notebooks and tablet PCs.

For the operators, upgrade of the mobile backhaul will lead to lower costs per bit, a smooth migration from Time Division Multiplex (TDM) to packet transport, and the opportunity to scale microwave up to gigabit capacities step-by-step.

Gerhard Lüdtke, Director Access Network at E-Plus Group, says: "To cope with the continuous rapid growth in data traffic and offer faster mobile access and backhaul networks, we are upgrading our mobile backhaul with the help of Ericsson's MINI-LINK technology. This investment will also allow us to make our network more cost-effective and future-proof, to the benefit of our broadband business."

Anders Runevad, Head of Region Western & Central Europe at Ericsson, says: "Mobile backhaul is becoming increasingly important due to the rapid increase in consumption of internet services, which can otherwise put a lot of strain on mobile networks. This necessitates an upgrade of the transmission network to provide sufficient capacity for the increased traffic generated at the radio base station sites. Mobile backhaul provides the link between the core and the radio network, and we aim to perfect that link."

Work related to the contract has already begun. Ericsson will migrate the two mobile operators' TDM-based transmission networks to packet-based mobile backhaul networks to pave the way for the introduction of HSPA Evolution and LTE.

About mobile backhaul

Due to ever-increasing demand for mobile internet applications on smartphones, laptops and tablet PCs, backhaul has become a critical link in mobile networks. Mobile backhaul ensures IP connectivity all the way through the network, delivering the lowest cost and the right packet functionality. Packet-based solutions provide scalable, cost-effective transport capacity for the backhaul. Ericsson provides such solutions by combining its optical and microwave products. In early 2011, Ericsson demonstrated the world's first microwave MIMO (multiple-input, multiple-output) system and an E-band system supporting speeds of 5 Gbps. Ericsson's backhaul solution lowers the cost per bit and ensures that future network capacity demand from ever-increasing mobile broadband usage can be met while maintaining the highest quality of service.

Notes to editors:

Ericsson Mobile Backhaul solution: http://www.ericsson.com/ourportfolio/network/ericsson-mobile-backhaul?nav=networkareacategory004%7Cfgb_101_686

Ericsson Microwave Networks: http://www.ericsson.com/ourportfolio/products/microwave-networks

Our multimedia content is available at the broadcast room: www.ericsson.com/broadcast_room

Ericsson is the world's leading provider of technology and services to telecom operators. Ericsson is the leader in 2G, 3G and 4G mobile technologies, and provides support for networks with over 2 billion subscribers and has the leading position in managed services. The company's portfolio comprises mobile and fixed network infrastructure, telecom services, software, broadband and multimedia solutions for operators, enterprises and the media industry. The Sony Ericsson and ST-Ericsson joint ventures provide consumers with feature-rich personal mobile devices.

Ericsson is advancing its vision of being the "prime driver in an all-communicating world" through innovation, technology, and sustainable business solutions. Working in 180 countries, more than 90,000 employees generated revenue of SEK 203.3 billion (USD 28.2 billion) in 2010. Founded in 1876 with the headquarters in Stockholm, Sweden, Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ New York.

 
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About the E-Plus Group

The E-Plus Group is the challenger on the German mobile communications market. Simple services tailored to customer needs and a major reduction in call and data charges can be traced back to the initiative of the third-largest mobile network operator in Germany. After revolutionizing the voice market for larger user groups now the company opens the mobile data market for the masses by its massive network roll-out and highly attractive low-priced data tariff schemes. As a result of innovative business models, modern structures and strong partnerships the E-Plus Group was able to significantly strengthen its market position and show a more dynamic and profitable development than the market. Since 2005 E-Plus Mobilfunk GmbH und Co. KG has developed into a family of brands offering target group-specific services and thus breaks new ground in mobile communications in Germany. The flat-rate brand BASE and the mobile discounters simyo and blau are market leader in their segments, while the original E-Plus brand offers a range of services to its existing customers. The brand AY YILDIZ addresses the Turkish community in Germany. The partners of the E-Plus group include many other brands, such as MEDIONmobile (ALDI TALK) and music TV station MTV. More than 22.7 million customers are using the network of the E-Plus Group to make calls and send text messages or data. The Group generates annual revenues of EUR3.2 billion (2011) and employs more than 4,500 people (FTE) in Germany.

About KPN Group Belgium

KPN Group Belgium nv/sa is a 100% subsidiary of Koninklijke KPN N.V. KPN offers mobile voice and data services in Germany (E-Plus and its sister brands), Belgium (BASE and its sister brands) and the Netherlands (KPN, Hi and Telfort). At the end of September 2011, KPN Group Belgium had 813 employees. In 2010, KPN had a yearly turnover of 785 million euro in Belgium. The company's headquarters are in Brussels; it positions itself as an innovator in products and services via a segmented, multibranded approach. KPN Group Belgium commercializes the brands BASE, Ay Yildiz, Simyo, Zoniq and BASE business.

Press release as PDF: http://hugin.info/1061/R/1581186/493846.pdf

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Source: Ericsson via Thomson Reuters ONE

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