Ericsson wins USD 1.3 billion turnkey contract

Ericsson announced it had won a turnkey contract valued at USD 1.3 billion to
supply GSM and WCDMA/HSPA equipment and related telecom services to Bharat
Sanchar Nigam Ltd (BSNL).

Under the agreement, Ericsson will be responsible for the expansion and
upgrade of BSNL's existing GSM network and introduction of WCDMA/HSPA
functionality. This upgrade marks an important step in BSNL's network evolution
and sets the stage for end-customer access to a range of innovative
telecommunications.

Ericsson will supply a GSM and WCDMA/HSPA radio access network, transmission
equipment and a complete GSM/WCDMA common core network - including the Ericsson
Mobile Softswitch Solution, service-aware Packet Core, IMS and a multiservice IP
Packet Backbone Network. Ericsson will also deliver telecom-related services,
such as network design, deployment and systems integration.

Deliveries will start in October 2007, with the first phase of the project
set to be completed in 12 months. The contract reinforces Ericsson's leading
position in this high-growth market and reflects Ericsson's ambition of offering
communications to all.

Kuldeep Goyal, Chairman and Managing Director of BSNL, says: "This
contract represents a milestone in our long-standing relationship with Ericsson.
Upgrading our network will pave the way for a premium communications experience
for our customers, and enable us to address new customer segments
cost-efficiently. Ericsson's leading position, end-to-end capabilities and
demonstrated competence, product portfolio, rollout and professional services
capabilities made it the natural choice for this important project."

Mats Granryd, Country Manager, Ericsson India, says: "Ericsson is proud
to have been selected for this landmark project, which will further strengthen
our long-term relationship with BSNL. This deal is set to be a catalyst for
future telecom growth in the dynamic Indian market."