Three U.S. Wireless Providers Demand Ericsson for Core Network Capacity

1/27/2004 - Ericsson has signed managed services contracts with three individual rural market operators to migrate their TDMA wireless networks to GSM. According to the agreements, Ericsson will manage and provide core network capacity on demand to each operator. By choosing this strategy, Missouri-based Chariton Valley Wireless Services, Pennsylvania-based Indigo Wireless and Georgia-based PSC Wireless will each be able to deploy a full-featured GSM network with more flexibility, and less capital and operational expense than traditional buildouts.

Under the terms of the agreements, each customer has purchased and will operate its own radio access network. Each operator will use Ericsson's supplied core network capacity to provide switching services and data capabilities, which initially will include GPRS, voice mail and SMS. The arrangements eliminate core facility concerns such as power, site leasing and facility maintenance.

"Managed Services is a great alternative for rural operators because it allows them to provide the same GSM service as major operators much more quickly and cost effectively than if they had to design and build the infrastructure themselves," said Gowton Achaibar, vice president and general manager, Ericsson Global Services North America. "It leaves operators free to concentrate on marketing their services to local subscribers while benefiting from providing advanced wireless services to roaming traffic."

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.

About Chariton Valley
Chariton Valley Telephone was incorporated in 1952 and operates as a cooperative. It has approximately 6000 shareholders and services more than 8000 local access lines within 18 exchanges in rural north central Missouri. Chariton Valley has grown and expanded over the last 50 years and has created numerous subsidiary companies, to offer communications products such as competitive local service, cable television, paging, two-way radio, wireless, long distance, voice mail, calling cards, internet, and wireless internet. Two of Chariton Valley's subsidiaries, will be offering GSM service which will broaden Chariton Valley's wireless coverage from North Central to South Central Missouri using both their 850Mhz & 1900Mhz licensed market areas.

About Indigo Wireless
Indigo Wireless is a privately held corporation that has been operating traditional cellular TDMA systems in North Central Pennsylvania and in the Panhandle of Nebraska since 1991. Indigo Wireless is currently constructing a PCS 1900 MHz GSM system in the North Central Pennsylvania area. The new GSM system will cover over 5000 square miles and offer service to rural areas in Northern Pennsylvania that have never had wireless service.

About PSC Wireless
PSC Wireless is a wholly owned subsidiary of Public Service Communications, a privately-owned corporation providing conventional and wireless telephone, internet, cable television and long distance services to Georgia and Alabama. With a licensed service area extending from Newnan, Georgia in the north to the Florida border in the south, and from Auburn, Alabama in the west to Tifton, Georgia in the east, PSC covers 21,000 square miles and is continually expanding into new communities. As a locally owned and operated company, PSC Wireless is uniquely positioned to offer customized wireless services and rate plans to the region.

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