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April 18, 2005 10:51 AM US Eastern Timezone

Ericsson and ICE in Costa Rica Sign Managed Services and GSM/GPRS Infrastructure Contract

STOCKHOLM, Sweden--(BUSINESS WIRE)--April 18, 2005--The Instituto Costarricense de Electricidad (ICE) has chosen Ericsson (NASDAQ:ERICY) to deploy, operate, optimize and maintain a national GSM/GPRS 1800 MHz network in Costa Rica. This is the largest managed services deal announced in the Central America region. The contract value is USD 130 m.


The network, which is scheduled for launch during the fourth quarter 2005, will allow ICE to provide advanced services such as unified messaging, MMS, location-based services (LBS) and SMS.

Furthermore, through this six-years managed services contract with Ericsson, ICE will be able to control its costs and expand its range of services, thus attracting a larger, more diverse subscriber base.

"With this agreement, Ericsson reinforces its telecom leadership in Central America, where the company has won a large share of the GSM contracts awarded," said Lars Linden, president of Ericsson Central America.

"We are honored to have being selected by ICE," said Ricardo Taylor, Country Manager for Ericsson Costa Rica. "Ericsson is committed to providing the highest quality products and services to help ICE supply innovative GSM services in this important market."

Telecommunications is a governmental monopoly in Costa Rica, where Ericsson has operated since 1965. Ericsson's sole customer is ICE, for which Ericsson has supplied fixed and wireless systems.

Ericsson is shaping the future of mobile communications and broadband Internet through continuous technological leadership. Providing innovative solutions in over 140 countries, Ericsson is helping to create the most powerful communication companies in the world.

The Instituto Costarricense de Electricidad (ICE) has chosen Ericsson (NASDAQ:ERICY) to deploy, operate, optimize and maintain a national GSM/GPRS 1800 MHz network in Costa Rica