Ericsson to further modernize and expand Grameenphone's all-IP core network in Bangladesh

Ericsson (NASDAQ:ERIC) and the leading Bangladeshi operator Grameenphone, have signed an agreement to extend the capacity of the Telenor Group company's all-IP core network. The decision to add capacity follows tremendous growth in subscribers and resulting traffic in the Grameenphone network over the last year.

Grameenphone has seen rapid growth in recent years and in 2007-2008 traffic increased considerably. The contract with Ericsson will enable Grameenphone to improve its offering to its more than 20 million customers.

The contract covers expansion and deployment of additional parts of the GSM core and radio access network. Ericsson will also provide related support services to Grameenphone throughout the contract lifecycle. This will ensure a flexible, scalable and robust network, enabling Grameenphone to cost-effectively develop a range of innovative services.

Ericsson will provide products to Grameenphone for all parts of its GSM network and the network is future-proof for possible upgrades to 3G and products like the new-generation Mobile Softswitch Solution (MSS) including Ericsson MSC Server Blade Cluster.

The MSC Server Blade Cluster is an innovative new product that employs highly scalable and efficient blade technology. It provides ultra-high capacity, supporting up to 8 million subscribers with only two cabinets. It can reduce space requirements by a further 90 percent and server energy consumption by a further 60 percent per subscriber, compared to Ericsson's current server generation.

Anders Jensen, CEO of Grameenphone, says: "In partnership with Ericsson, we are preparing for the next generation of our network solution. This investment in our network will help Grameenphone to meet the needs of our rapidly increasing subscriber base to keep our leading position."

Arun Bansal, Managing Director, Ericsson Bangladesh, says: "This contract reinforces our long-term partnership with Grameenphone, and we are honored to continue this relationship. This contract will allow Grameenphone to address strong subscriber growth and capture the full potential of this dynamic market."

Grameenphone and Ericsson have been partners since the Bangladeshi operator was established in 1996.