MTN Group Selects Ericsson for Agreements Worth $1.5+ Billion

5/25/2004 - Ericsson has signed two five-year agreements with telecommunications operator MTN Group for mobile network equipment and services. The agreements are valued at more than USD 1.5 billion.

The agreements build on Ericsson's and MTN's ten year relationship and experience in meeting the demands of mobile phone users in the sub-Saharan region. The agreement moves the relationship to a new level aimed at evolving and growing the MTN business.

The agreement for equipment supply and delivery covers pre-defined solutions for mobile core and radio access network, ensuring an efficient supply chain and scalability across all MTN markets.

The agreement for provisioning of services includes business and technology consulting, network and systems design, deployment and integration, and support and training. Under the agreement MTN locally can choose different service levels depending on the operator's local capability, giving MTN a very high degree of flexibility in their operations.

"The agreement is a result of Ericsson's continuous drive to optimize MTN's investment in network equipment, our partnering approach and our on-going efforts to assist in achieving our customers strategic business objectives," says Jan Embro, Vice President and General Manager of Ericsson Market Unit sub-Saharan Africa.

"With their technology leadership and market presence as well as their comprehensive services portfolio Ericsson is a key part of evolving our business. With these agreements we can focus on the provisioning of telecommunications services to our subscribers," says Mr. Phuthuma Nhleko, MTN Group CEO.

MTN is the leading operator in sub-Saharan Africa with more than nine million subscribers across six countries. The past 10 years have strengthened the relationship between Ericsson and MTN through the roll-out of networks in Swaziland, Rwanda, Uganda, Cameroon and Nigeria, as well as South Africa.

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 MTN Group Limited
Launched in 1994, the MTN Group celebrates ten years as a leading provider of cellular and communications services in Africa and is listed on the JSE Securities Exchange South Africa under the share code: "MTN". The Group encompasses MTN South Africa, MTN International and its Strategic Investments division which hosts Orbicom, Airborn and MTN Network Solutions. As at end 31 December 2003, the MTN Group recorded almost nine million subscribers across the continent where it provides cellular, satellite and Internet access services to 14 African countries. The Group has invested in six GSM cellular networks in Africa, including South Africa, Swaziland, Rwanda, Uganda, Cameroon and Nigeria. For more information please visit

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