Ericsson and Deutsche Telekom enter managed services deal for microwave network

8/30/2007, 8:12 AM (Source: GlobeNewswire)

Ericsson and Deutsche Telekom, one of the world's largest incumbents,
have entered a six-year managed services partnership. The
strategically important contract covers the operation and maintenance
of Deutsche Telekom's microwave network in Germany.

As part of the transaction, roughly 200 employees will be transferred
from T-Com to Ericsson, the world's leading telecom vendor and
service provider. T-Com will transfer its microwave assets and
related operation activities to Ericsson. Ericsson will thereby take
over full responsibility for the realization and operation of
Deutsche Telekom AG's microwave based links in Germany, including
planning, deployment, operation and field services.

T-Com will buy capacity from Ericsson as part of an ongoing managed
services contract.

Hans Vestberg, Executive Vice President and Head of Business Unit
Global Services at Ericsson says: "We are confident that we not only
can maintain the high quality of the network while helping reduce
costs for our customer, but that we can also improve profitability in
the operation of microwave networks over coming years by adding new
customers. This agreement will also lay the foundation for our
strategy to make managed services a growth area and success story in
Germany as well. We welcome the highly qualified new employees from
T-Com, whom we will offer attractive career paths in an international
environment of a true global player."

The majority of data traffic in the microwave network today is
already transmitted over systems delivered by Ericsson.

The managed services deal with Deutsche Telekom/T-Com underlines
Ericsson's leading role in microwave and managed services worldwide
and in Germany.

Ericsson is shaping the future of Mobile and Broadband Internet
communications through its continuous technology leadership.
Providing innovative solutions in more than 140 countries, Ericsson
is helping to create the most powerful communication companies in the


Ericsson Media Relations
Phone: +46 8 719 6992

About Ericsson's Managed Services offering
Ericsson has the telecom industry's most comprehensive offering of
managed services, ranging from designing, building, operating and
managing day-to-day operations of a customer's network, to hosting
service applications and enablers, 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 since 2002. In all current
contracts for managed services, excluding hosting, Ericsson is
managing networks that together serve more than 135 million
subscribers worldwide.

About Deutsche Telekom AG
Deutsche Telekom AG is one of the world's leading integrated
telecommunications companies with more than 111 million mobile
customers, about 38 million fixed-network lines and 13 million
broadband lines as of June 30, 2007. In the three strategic business
areas, Broadband/Fixed Network, Mobile Communications and Business
Customers, more than 240,000 employees worldwide deliver the full
range of modern telecommunications products and services from a
single source - fixed-network lines, mobile communications and
complex IT solutions.
In the 2006 financial year the group generated revenues of EUR 61.3
billion - almost half outside Germany. Active in nearly 50 countries
worldwide, Deutsche Telekom is a genuinely international group

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