Ukrainian RadioSystems (URS) has chosen Ericsson (NASDAQ:ERICY) Mobile Softswitch solution for its nationwide GSM network, Ericsson Press release informs. This solution will meet URS's needs for a rapid and cost-efficient growth of capacity and coverage, and sets the first step in the operator's evolution to an all-IP network.

Sergey Mironov, General Director of Ukrainian Radiosystems, says: "Years of cooperation with Ericsson made us feel confident of its technologically advanced solutions, innovation, flexibility and wide
spectrum of available services. We are glad that Ericsson is our strategic partner in Ukraine."

"Without a doubt, in partnership with Ericsson we will build a network that will offer our subscribers world-class communications and bring new attractive services to the market. Our choice of
technological solution will allow us to migrate to 3G without substantial additional costs, concurrently minimizing operational and maintenance costs".

Zoran Lukovic, Vice President, Ericsson Eastern Europe and Central Asia, says: "We are proud to be selected by Ukrainian Radiosystems as supplier of the mobile softswitch solution. Our global technology leadership combined with our unique local presence and experience are key factors for successful long-term cooperation with our customer".

Under the agreement the first phase of implementation and operation of the mobile softswitch will be completed in the second quarter of this year.

On November, 2005, Ericsson and URS signed a three-year frame agreement valued at USD 200 million to build URS's nationwide mobile network in Ukraine.

Ericsson softswitch solutions are widely deployed in both fixed and mobile networks. They enable cost optimized network design and efficient IP transport for all services. The distributed softswitch
architecture improves investment efficiency through node consolidation and the superior price/performance of modern IP based equipment. Operating Expenses (Opex) are cut due to reduced
transmission costs and simplified operations and maintenance and network planning. Business cases around the world have shown core network Opex savings are of up to 50%.

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.

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