Ericsson to upgrade mobile backhaul networks in Germany and Belgium

1/31/2012, 9:01 AM (Source: GlobeNewswire)
* 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) 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

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

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:

Ericsson Microwave Networks:

Our multimedia content is available at the 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.


Ericsson Corporate Public &Media Relations
Phone: +46 10 719 69 92

Ericsson Investor Relations
Phone: +46 10 719 00 00

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 €3.2 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.

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Source: Ericsson via Thomson Reuters ONE

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