Ericsson signs first contract for hosted mobile advertising with KPN in the Netherlands

Ericsson (NASDAQ:ERIC) and Dutch mobile network operator KPN have signed a contract for hosted mobile advertising. This marks Ericsson's first contract for hosted mobile advertising.

Under the agreement, Ericsson will provide KPN with an innovative and flexible end-to-end business solution for managing and delivering targeted advertisements to be displayed on mobile phones and other devices.

The hosted service enables KPN to deliver targeted advertisements based on consumer preferences to individual network users via mobile internet pages and various messaging services. The advertisements can be targeted based on each user's personal preferences. Advertising agencies can create and maintain advertisement campaigns through reporting tools.

KPN has piloted mobile advertising services with major advertisers and is currently testing them further. The company is committed to working out opt-in programs for customers in accordance with legal requirements, and is researching appropriate incentive programs. In May 2008 KPN commercially launched the first mobile advertising services.

Patrick Kuijsters, marketing director KPN Mobile, says: "KPN is proud to announce a strategic partnership with Ericsson. Ericsson' platform suits KPN's need to add relevant advertisements to operator services to end users, in which opt-in plays a crucial role. KPN's vision is to reduce waste of advertisers' media spending and to deliver relevant offers to its consumers based on their desires. Ericsson is a crucial partner in realising this vision, and is willing to help KPN shape this developing market."

Mobile advertising is a developing medium that supports new business models with promising forecasts. Mobile devices, as the most personal medium, provide opportunities for these new business models.

Nils de Baar, President, Ericsson in the Netherlands, says: "Hosting is a growing segment within Ericsson and we are pleased to collaborate in exploring new possibilities in the multimedia environment. This underlines both our strengths as the leader in telecom services and our commitment to become a leader in multimedia."

Hosting is part of Ericsson's services portfolio and it is a business model that allows Ericsson's customers to easily, cost-efficiently and quickly launch and run services while Ericsson takes responsibility for systems integration and daily management of the end-to-end service.