Ericsson to supply 3G/HSPA network for Movistar in Uruguay

Market Wire, September, 2007

Ericsson (NASDAQ: ERIC) has announced a deal with Uruguay's leading operator Movistar, part of the Telefónica group, for the launch of its 3G network. Under the agreement, Ericsson will be the sole supplier and network integrator for Movistar's new WCDMA/HSPA core and radio network.

Pablo de Salterain, CEO of Movistar Uruguay, says: "Movistar is committed to providing leading telecommunications to the market. This deal marks a new era of communications and 3G services in Uruguay, and positions us for further evolution of our offerings. Ericsson's support will allow us to offer top-quality multimedia services to our customers."

Rafael Sancristóbal, vice president, Ericsson in South Latin America, says: "Ericsson and Movistar Uruguay have a long history of successful cooperation in delivering innovative mobile services. With third-generation networks, Movistar's customers will benefit from a range of innovative multimedia services."

Ericsson's HSPA solution enables download speeds of up to 14.4Mbps and upload speeds of 1.4Mbps. The advanced technology lets operators more than double their system capacity and cuts response times for interactive services.

Notes to editors:

Ericsson's WCDMA/HSPA reference list: www.ericsson.com/ericsson/press/facts_figures/3g_reference.shtml

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 world.

Read more at http://www.ericsson.com

FOR FURTHER INFORMATION, PLEASE CONTACT
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About Telefónica

Telefónica is one of the largest telecommunications companies in the world in terms of market capitalisation. Its activities are centered mainly on the fixed and mobile telephony businesses with broadband as the key tool for the development of both.

The company has a significant presence in 23 countries and a customer base that amounts to more than 220 million accesses around the world. Telefónica has a strong presence in Spain, Europe and Latin America, where the company focuses an important part of its growth strategy.

About Ericsson's HSPA solution

Ericsson's HSPA solution is part of Ericsson's Full Service Broadband offering and enables download speeds of up to 14.4Mbps and upload speeds of 1.4Mbps. The advanced technology lets operators more than double their system capacity and cuts response times for interactive services. On average, users will be able to download 20 times faster than with a GSM/GPRS connection. Future evolution steps will increase the HSPA download speed to 42Mbps and the upload speed to 12Mbps. Ericsson offers HSPA support on many frequency bands, ranging from 850MHz to 2.6GHz.

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