Mobile Broadband Network Limited (MBNL), the 50:50 joint venture formed by 3 UK and T-Mobile UK to integrate and manage their 3G radio access networks (RAN), has selected Ericsson (NASDAQ:ERIC) to provide managed services to complete the consolidation of their 3G infrastructure. Under the terms of the contract, about 220 T-Mobile staff have transferred to Ericsson.

Ericsson will be responsible for the network design and deployment requirements of the consolidation program, which will result in the creation of an integrated 3G network providing close to complete population coverage for 3G services. It will also reduce the number of radio sites from approximately 18,000 sites to 13,000, providing both environmental benefits and significant cost savings while simultaneously improving coverage.

In addition to the consolidation and decommissioning of sites, Ericsson will take responsibility for the acquisition and building of new sites, capacity management, equipment swaps and upgrades to transmission facilities. The five-year contract includes management of the ongoing growth and optimization of the 3G RAN as well as T-Mobile's 2G access network.

Approximately 220 operations staff from T-Mobile have transferred to Ericsson, further strengthening its existing UK managed services relationship with MBNL, 3 UK and T-Mobile UK.

In November 2008, Ericsson was awarded a managed services contract for the operation of the integrated 3G networks and T-Mobile's 2G network.

T-Mobile UK CTO Emin Gurdenli says: "Our partnership with Ericsson will accelerate network integration activities and keep us on track to achieve our goal of creating the UK's most extensive 3G network by 2010, providing consumers across the UK access to 3G services. The provision of universal access to high-speed broadband services by 2012 is the centerpiece of the Government's Digital Britain report. The realization of our consolidated 3G network will open the way for mobile broadband to play an increasingly important role in achieving this target."

3 UK CTO Graham Baxter says: "This is an ambitious program to provide an effective mobile broadband network with the capacity to deliver voice and internet services to a very significant proportion of the UK population. Ericsson has played an important role in the development of 3G networks around the world and will now play a crucial role in the development of the UK's best 3G network. This network consolidation and the benefits it brings will make a real difference for mobile consumers, many of whom will find that this program will bring them access to the internet for the first time."

Mats Granryd, Managing Director, Ericsson UK, says: "I am thrilled that we have been entrusted with the responsibility of delivering this comprehensive program. It is exceptional in terms of its scale and I am delighted that this new contract further extends our relationship with MBNL."

Jan Frykhammar, Senior Vice President and Head of Business Unit Global Services, Ericsson, says: "I am proud that we are further extending our relationship with MBNL. This is a partnership which illustrates new ways where Ericsson can deliver results from managed services. Today we are managing networks that together serve over 250 million subscribers on a daily basis. This builds on our extensive experience in managed services, our tools, methods and processes that are used globally, and that fulfill operators' needs for network cost and performance management."

This contract is the seventh managed services contract announced in the UK by Ericsson.

Ericsson is the world's leading provider of technology and services to telecom operators. The market leader in 2G and 3G mobile technologies, Ericsson supplies communications services and manages networks that serve more than 250 million subscribers. The company's portfolio comprises mobile and fixed network infrastructure, and broadband and multimedia solutions for operators, enterprises and developers. The Sony Ericsson joint venture provides consumers with feature-rich personal mobile devices.

Ericsson is advancing its vision of 'communication for all' through innovation, technology, and sustainable business solutions. Working in 175 countries, more than 70,000 employees generated revenue of USD 27 billion (SEK 209 billion) in 2008. Founded in 1876 and headquartered in Stockholm, Sweden, Ericsson is listed on OMX Nordic Exchange Stockholm and NASDAQ 

About Ericsson's Managed Services offering

Ericsson has the telecom industry's most comprehensive managed services offering. It ranges from designing, building, operating and managing day-to-day operations of a customer's network, including end-user services and business-support systems, to hosting service applications and content, as well as providing network coverage and capacity on demand. As the undisputed leader in managed services, Ericsson has officially announced more than 100 contracts for managed services with operators worldwide since 2002. In all current managed services contracts, excluding hosting, Ericsson is managing networks that together serve more than 250 million subscribers worldwide.

About T-Mobile UK

T-Mobile is one of the world's largest mobile operators with more than 126.6 million customers worldwide and is the service provider of choice for 16.8 million customers in the UK, making it one of the largest networks. T-Mobile has a range of innovative products and services, such as Solo, the SIM only option offering market-leading minutes and texts on a 30-day rolling contract; Combi, our best package deal; Flext, a unique tariff with a flexible allowance; U-Fix, a tariff that combines pay-as-you-go and a minimum term contract, and web'n'walk, which enables customers to surf the internet on the move. Competitive high-speed Mobile Broadband tariffs include access to the largest worldwide Wi-Fi network, with more than 1,000 HotSpots in convenient locations in the UK and 27,000 worldwide. Network coverage is among the best in the UK at over 99 per cent of the UK population. T-Mobile operates an advanced 3G HSDPA-enabled network capable of supporting effective mobile broadband speeds of up 4.5Mbps and is the first UK operator to provide a nationwide HSUPA capability for faster uploads.

About 3 UK

3 is a mobile operator focused on bringing the benefits of the internet to mobile communications. We offer attractive pricing and give our customers the widest choice of ways to stay connected at home or abroad. To do this we're building the UK's best high-speed mobile broadband network. 3 UK is a member of the HWL group of 3G companies, which include 3G operations in Australia, Austria, Denmark, Hong Kong, Ireland, Israel, Italy, Macau and Sweden.

Three facts about 3:       

• 3 launched the UK's first 3G network offering national coverage for calls and texts, and has over 90% population coverage for 3G services. As we consolidate our radio access network with T-Mobile we expect to reach almost complete UK population coverage for 3G by the end of 2009. 
• 3 has over 3 million active customers in the UK and over 16 million worldwide.
• 3 was the first to enable free voice over internet calling with Skype and the first to launch a dedicated Skype mobile phone, the 3 Skypephone.