Wireless' migration to 3G technology Ericsson (NASDAQ: ERICY) has signed a letter of intent to supply network equipment and mobile phones to AT&T Wireless (NYSE: AWE) as it migrates to third generation (3G) wireless networks. As a part of the agreement, AT&T Wireless will use Ericsson's R520 mobile phones to launch its General Packet Radio Service (GPRS) network, which will enhance the speed of mobile Internet services to U.S. customers next year. Ericsson will also provide base station systems, including GSM for voice, GPRS for packet data and EDGE and UMTS for higher-speed 3G applications.
"This new agreement further strengthens our longstanding relationship with AT&T Wireless and confirms the companies' parallel strategies - to be leaders in delivering the mobile Internet to consumers as quickly as possible," said Per-Arne Sandström, president and chief executive officer, Ericsson Inc. "Ericsson supports the early introduction of next generation services by providing end-to-end mobile Internet solutions, including network equipment, mobile phones and applications."
"Ericsson has been a key supplier to AT&T Wireless since we rolled out our first analog cellular networks and throughout our 2G deployments," said Mohan Gyani, president and chief executive officer of AT&T Wireless Services. "We look forward to strengthening our partnership with Ericsson as we migrate to 3G technology and put advanced wireless Internet applications into our customers' hands."
GRPS services will support packet-based access to the mobile Internet at data speeds significantly faster than current mobile systems. Ericsson is already the leading supplier of GPRS networks worldwide and recently unveiled the first GPRS phone with Bluetooth , the tripleband R520.
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