Ericsson has signed the largest single contract in Vietnam, amounting to $450 M, to develop and modernize Hanoi Telecom's nationwide mobile network. The strategic partnership, a first in Vietnam, will also see the company managing and operating the network under a full-scope managed three-year services contract.

Under the agreement, Ericsson will be responsible for the management, operation and network design of Hanoi Telecom's mobile network, including field operations and support services. The company will also provide a comprehensive range of professional services, such as network deployment and systems integration.

It will be responsible for the nationwide migration of the operator’s network from CDMA to GSM/EDGE technology, supplying radio access network equipment, optical and microwave transmission, and will be the sole supplier of the all-IP circuit and packet core network. Deployment has started and commercial launch is set for the end of 2008. To provide technical support and network operation, Ericsson will expand its operations in Hanoi and Ho Chi Minh City, and set up a new office in Danang City.

Pham Ngoc Lang, chairman of Hanoi Telecom, commented, "This strategic partnership with Ericsson is a first in Vietnam. It will provide us with a competitive advantage by allowing us to focus on our core business and help position us for rapid nationwide expansion."

Eddie Åhman, president, Ericsson Vietnam, replied, "We are proud to be selected by Hanoi Telecom as a strategic partner. We are confident that our strong local presence, industry leadership in services and technology, and firm commitment in Vietnam will support Hanoi Telecom's expansion plans in this dynamic market."