Ericsson signs 100th Evolved Packet Core contract

• Telstra and Ericsson agree to extend strategic partnership to deliver world-class LTE experience for Telstra users and expand Telstra's LTE network across Australia
• Advanced technology trial and subsequent deployment of LTE-Advanced Carrier Aggregation in 900MHz and 1800MHz spectrum bands
• LTE heterogeneous network trial and LTE Broadcast trial to further enhance Telstra's network

Telstra and Ericsson (NASDAQ: ERIC) today announced the renewal of their longstanding strategic partnership to deliver a world-class LTE experience for Telstra's users. The renewed contract, announced at the Mobile World Congress, will include an expansion of Telstra's LTE network across Australia, reaching more Australians with improved coverage, capacity and availability.

The partnership also includes the implementation of a program of advanced technology trials - of LTE-Advanced Carrier Aggregation, LTE heterogeneous networks and LTE Broadcast - to further enhance Telstra's network.

Nearly 1.6 million mobile subscribers have joined Telstra over the past 12 months and data usage on its Next G network is doubling each year.

David Thodey, Chief Executive Officer of Telstra, says: "Telstra is very proud of the work that we are undertaking with Ericsson to ensure Australia remains at the forefront of mobile connectivity. We believe these initiatives are a way of efficiently maintaining our high quality network and meeting sustained, growing customer demand."

By combining spectrum assets for LTE networks - such as the use of the 1800MHz and 900MHz bands - the LTE-Advanced Carrier Aggregation trial will pave the way for future improvements in capacity and coverage.

Ericsson's coordinated solution for small cells in heterogeneous networks ensures high-quality capacity and connectivity in even the most densely populated city areas. The Telstra trial will examine how small-cell technology can improve the future scalability and densification of its LTE network.

In the third trial for 2013, for the LTE Broadcast solution, Ericsson will deploy Evolved Multimedia Broadcast Multicast Service (eMBMS) technology into Telstra's live network. As part of the trial, premium video and file-based content will be broadcast over the LTE network to test how video and other content can be more efficiently delivered through application of dynamic offload, particularly in dense consumption scenarios.

Ericsson President and CEO Hans Vestberg says: "Under this agreement, Ericsson continues as Telstra's prime vendor of 3G and 4G RAN technology. The trials for Telstra will provide insights applicable not only on the Australian market but also globally. For example, the heterogeneous networks trial will be of interest to operators around the world who want to ensure capacity and connectivity in densely populated city areas. And the LTE Broadcast trial will show how Ericsson technology can deliver media content efficiently over LTE."

The agreement includes provision of hardware, software, customer service, construction services and the innovative technology trials.

During Mobile World Congress 2013 in Barcelona, Ericsson showcases its combined technology and services leadership for the ICT industry. Our solutions deliver superior network performance in the field, enable complete customer experience management, and simplify and automate operations workflows - thereby leading to operational excellence. We show how the Networked Society comes to life - what it will mean for the industry and how it will enable our customers to capture growth opportunities.