Ericsson signs major TDMA contract with CTC Startel in Chile

Business Wire, Jan 11, 1999

STOCKHOLM, Sweden--(BUSINESS WIRE)--Jan. 11, 1999--Ericsson has signed a contract with CTC-Startel, Chile's largest wireless network operator, for expansions of their TDMA (IS-136) network. The contract, valued at USD 35.5 million (SEK 276 million) is CTC-Startel's fifth expansion order in the past 12 months for a total value of USD 114.2 million (SEK 890 million).

The contract is for the expansion of both capacity and coverage of the network and is in response to the rapid subscriber growth experienced during 1998, doubling the number of subscribers to over 500,000. With the introduction of Calling Party Pays legislation in Chile, beginning this quarter, the high subscriber growth is expected to continue. After the elimination of the double tariffing system, requiring both the receivers and callers to pay, countries have frequently experienced a very rapid subscriber growth and increased phone usage.

The order includes the latest Ericsson dual-mode (analog/digital) RBS 884 radio base stations. The order also includes two new high-capacity Ericsson MSC 2000 mobile switching centers, which are based on the new generation AXE 10 hardware platform. CTC-Startel became the world's first operator to implement this new type of MSC in 1998.

There are approximately 90 million subscribers using TDMA/AMPS networks worldwide. TDMA (IS-136) is commercially available as a dual-band (800/1900 MHz) and dual-mode (analog-digital) technology. Over 17 million subscribers are already using TDMA (IS-136) digital services. TDMA (IS-136) already delivers over 85% of the IMT-2000 functionality and is being further enhanced to deliver all IMT-2000 capabilities in the existing 800 and 1900 MHz frequency bands and in the new 2 GHz band.

Ericsson is the leading provider in the new telecoms world, with communications solutions that combine telecom and datacom technologies with freedom of mobility for the user. With more than 100,000 employees in 140 countries, Ericsson simplifies communications for its customers - network operators, service providers, enterprises and consumers - the world over.

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