Already by This Summer in Cooperation with Ericsson

Magyar Telekom has confirmed Ericsson as key partner for the HSPA+ upgrade of its T-Mobile network. Initially, the Hungarian operator will offer HSPA+ services with peak downlink speeds of up to 21 Mbps in Budapest and several rural locations via 200 new HSPA+ base stations. The technology will cover nearly 100% of the country’s population by 2013. The modernised network will also be ready for LTE rollout once necessary spectrum been made available.

Magyar Telekom, the leading Hungarian telecommunications service provider, has embarked on another large scale modernisation of its mobile network with its longstanding partner, Ericsson. As the first stage of the modernisation, T-Mobile customers will be able to experience the benefits of the super fast broadband services in this summer when HSPA+, offering 21 Mbps speed, will be available in many parts of Budapest as well as in several locations in the countryside, via 200 new HSPA+ stations, whereas HSPA+ will be available to close to 100% of Hungary by 2013. Magyar Telekom will also be ready even in 2011 to start to offer LTE services to its customers through the new LTE (4G)-capable technology provided by Ericsson - once the necessary frequencies are available.

This new step of network development will mean that Magyar Telekom's investments in Hungary since 2005 will have surpassed the HUF 500bn mark. In the presence of the Minister of National Development (Dr. Tamás Fellegi), the network modernisation was announced jointly by Christopher Mattheisen (Magyar Telekom's Chairman and CEO), István Maradi (Magyar Telekom's Chief Technology Officer) and Nils de Baar, Head of Global Customer Unit Deutsche Telekom at Ericsson.

In his welcome speech Dr. Tamás Fellegi, Minister of National Development, underlined: "As a regulator and a stimulator the Ministry of National Development provides every necessary tool for the telco sector to be able to evolve in its natural course. With proper governmental support total broadband coverage and wider utilisation of the new generation services are now within arm's reach. Magyar Telekom's investment will significantly contribute to Hungary's digital evolution and will serve as a stimulus to the healthy competition of the Hungarian telecommunications market. In this market only those companies can reach long-term success that recognise and apply the most advanced solutions in time."

Christopher Mattheisen, Chairman and CEO of Magyar Telekom, said: "As Hungary's leading ICT service provider, we are committed to the development of the digital society and are ready to play a defining role in the digital evolution of the country. Increasing access to the super fast mobile internet - the engine of development - is a top priority for us. By adopting cutting-edge, world class technologies, Magyar Telekom has always been a pioneer in this field, making significant contributions to the fast paced improvements within the Hungarian telecommunications sector, rapid even by the highest European standards. We were the first provider in Hungary to offer 3G, and then the even faster HSPA, to our customers. The modernisation announced today is another milestone in the history of quality mobile broadband in Hungary. By 2013 we aim to provide superior mobile net quality to close to 100% of Hungary, which comes through in international comparison as well. As far as the kick-off of modernisation is concerned: we have just started it today!"

István Maradi, Chief IT and Technology Officer of Magyar Telekom, underlined: "It was important for us to make sure that the selected supplier is capable of building a network that can serve the capacity of the current network many times over and also that we can be ready for the new generation LTE (4G) technology. As a result of the agreement, we will be able to increase the EDGE coverage ratio from the current 90% level to 100% and 21Mbit HSPA+ speed will be available to close to 100% of the country by 2013. Also, we are practically ready to introduce LTE (4G) in 2011 once the necessary frequencies become available. By selecting Ericsson as our partner, this will enable us to deliver excellent technology, ensuring reliable and safe operations, whilst also allowing us to meet our cost efficiency and 50% energy saving goals."

Nils de Baar, Head of Global Customer Unit Deutsche Telekom at Ericsson, said: "We are proud that Magyar Telekom selected Ericsson for the modernisation of its network. The announcement today is another milestone in the excellent cooperation between Ericsson and Magyar Telekom that already reaches back to decades. As part of the network modernisation, Ericsson will replace the current 2G and 3G wireless base stations to unique, multi-standard RBS 6000 equipments developed for GSM/EDGE, WCDMA/HSPA Evolution and LTE technologies. Ericsson's first Hungarian subsidiary was established in 1911, so this year's centennial is made memorable by two exceptional success stories: the further expansion of the high-tech R&D activity announced in March as well as the announcement today, i.e. we will provide market leading technology to the market leader, and will still remain 'the first ones together'."