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Telecommunications equipment industry

Ericsson Signs $250 Million Agreements with Smart Communications for Telecommunications Network Expansion

Strategic Insights

— 1 min read

Ericsson has announced significant agreements with Smart Communications, Inc., a Philippine network operator, valued at $250 million. The agreements involve a turnkey basis where Ericsson will supply equipment and build the fixed network for Smart's local exchange service areas, as well as expand Smart's existing Cellular Mobile Telephone Network (CMTS). The first contract, worth $180 million, will provide 280,000 fixed telephone lines, while the second agreement, valued at $70 million, will expand Smart's CMTS to 300,000 subscribers.

Key Takeaways:

  • Ericsson signed agreements valued at $250 million with Smart Communications for the expansion of Smart's local exchange service areas and its Cellular Mobile Telephone Network (CMTS).
  • The first contract, worth $180 million, will provide 280,000 fixed telephone lines under Smart's operating license granted by the National Telecommunications Commission (NTC).
  • The second agreement, valued at $70 million, will expand Smart's CMTS to 300,000 subscribers.
  • Ericsson will supply switching and transmission facilities, radio base stations, network management systems, billing, and customer services, as well as system support facilities.
  • The Ericsson AXE system will serve as the common platform for Smart's fixed and cellular networks, providing network-wide facilities such as intelligent networks (ISDN) and centrex facilities.
  • Smart's cellular network facilities consist mainly of switches and radio base stations from Ericsson, with the Smart TACS system in the Philippines acquiring 85,000 subscribers, making it the fastest growing cellular system in the Philippines.
  • The contract also covers the provision of an international gateway switching facility and a DECT wireless in the local loop trial system.
  • Ericsson has received its first order for telecommunications equipment from Smart Communications in 1993, with the company employing 80,000 staff across over 100 countries.

Statistics:

  • $250 million: total value of agreements signed between Ericsson and Smart Communications.
  • $180 million: value of the first contract for 280,000 fixed telephone lines.
  • $70 million: value of the second agreement for expanding Smart's Cellular Mobile Telephone Network (CMTS) to 300,000 subscribers.
  • 280,000: number of fixed telephone lines to be provided under the first contract.
  • 300,000: number of subscribers for the expanded CMTS under the second agreement.
  • 85,000: number of subscribers for the Smart TACS system in the Philippines.
  • 80,000: number of employees of Ericsson across over 100 countries.

Sources:

  • Business Wire, Aug. 29, 1995
  • Ericsson press release, Aug. 29, 1995

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