Ericsson announced it has signed an agreement to deploy a 3G/HSPA network for MTS (Mobile TeleSystems OJSV), the largest mobile operator in Russia with more than 83 million subscribers. The new network will enable MTS to offer its subscribers high-speed wireless Internet access, as well as advanced multimedia services such as mobile TV and video calls. The commercial launch of 3G network segments is scheduled for the second half of 2008.

Under the agreement, Ericsson will deliver 3G/HSPA core and radio access network equipment, network management system hardware and software plus a range of professional services such as network deployment, system integration, operation, technical support and training. Ericsson's HSPA (High-Speed Packet Access) provides fast data transmission speeds both in the downlink and the uplink, enabling download speeds of up to 14.4Mbps and upload speeds of 1.4Mbps. On average, users will be able to download 20 times faster than with a GPRS connection. The solution also boosts network capacity with more than 100% and lowers response time for interactive services. Ericsson's dual access packet core allows the efficient introduction of high speed 3G/HSPA services through software upgrade of the existing GSM core hardware.

"We are delighted to continue our longstanding relationship with MTS and become the supplier for their next-generation mobile network in this dynamic and rapidly growing market", said Bjorn Eisner, Vice-President, Ericsson Eastern Europe and Central Asia.

Ericsson's HSPA mobile broadband solution is part of Ericsson's Full Service Broadband offering. HSPA technology is a natural extension of existing WCDMA/GSM networks (about 85 percent of the world's existing wireless networks), allowing it to be easily made available to a large number of wireless users. It is expected that by 2010, 71 percent of mobile broadband connections will be HSPA-based. To date, Ericsson is powering 75 of the 154 commercial HSPA networks launched worldwide, with many additional ongoing deployments.