Ericsson Canada to Invest $196 Million to Develop 3G Wireless Solutions - Company Business and Marketing

Cambridge Telcom Report, Nov 1, 1999

Ericsson Canada Inc. has announced it has received an Ericsson world mandate to develop third generation (3G) wireless telecommunications solutions. The new mandate will include an investment of $196 million over three years and the creation of 130 new engineering positions at Ericsson's research and development centre in Montreal.

A main component of the new mandate, the Next Generation Systems Labs will be used to conduct applied research on 3G technology. A first in Canada, the lab will serve as a window for Canadian businesses and universities wishing to partner with Ericsson to develop leading-edge applications. The project will also lead to the consolidation of existing personnel and equipment.

"One of the most important benefits of 3G technology will be the ability to support multiple services at the same time, most notably e-commerce, multimedia and video applications", said Brian Barry, president and CEO of Ericsson Canada. "For example, a user will be able to connect to a corporate LAN, download files while sending email, verify his stocks and have a voice conversation simultaneously from a handset." The 3G technology is scheduled to become commercially available in 2001.

The announcement was attended by Industry Canada representatives, and Quebec's Deputy Premier and Minister of State for Economy and Finance, Mr. Bernard Landry. The role of the Federal Government included the allocation of frequency spectrum for evaluating 3G technology. Mr. Landry was on hand to highlight the participation of Invest-Quebec in the project. Both of these factors were instrumental in securing the mandate at Ericsson's Montreal facilities.

During the visit to the new 3G laboratories, Lionel Hurtubise, Ericsson Canada's Chairman, stated, "The wireless telecommunications industry is reaching a new and exciting inflexion point whereby second generation systems are evolving towards 3G applications. By investing in core activities with a promising future, Ericsson Canada will be strengthening its position as a global leader of ground-breaking communications technology. We are delighted to have been chosen for this most important global R&D mandate."

This recent mandate is the fourth Ericsson Canada has been awarded from its parent company since 1990. These mandates have resulted in R&D Investments exceeding $1 billion, and total R&D staff has increased from 205 employees in 1990, to 1232 employees in 1999. The CEO of parent company LM Ericsson, Dr. Lars Ramqvist, bestowed an award for technological excellence in cellular telephony upon the entire group of Montreal Engineers in 1992.

Ericsson Canada Inc., a subsidiary of LM Ericsson, Sweden, serves the Canadian Market by providing complete communication solutions including Wireless Systems & Solutions, Mobile Phones, IP and Data Systems & Solutions, and Internet Consulting Services. In addition, its R&D Centre in Montreal has the worldwide mandate for software development for the Global Wireless Standard TDMA and is Canada's sixth largest R&D investor. Ericsson Canada employs more than 1,600 people and has offices in Montreal, Missisauga, Vancouver, Ottawa, Calgary, Fort McMurray and Waterloo. FMI: http://www.ericsson.com/ca.>

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