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Vodafone Essar one of India’s leading cellular service providers has selected Ericsson as exclusive 3G HSPA hardware, software and related service vendor to equip India’s largest metropolitan cities; Mumbai, Delhi and Kolkata with latest HSPA mobile broadband network.

With strong subscriber growth and recent technology development, India’s information network is transforming itself rapidly. Vodafone Essar will deploy latest HSPA technology to deliver new type of services like video telephony, mobile broadband, mobile TV, video on demand and others such as music downloads, video tones, instant messaging, on line gaming.

Ericsson foresees three billion new mobile broadband subscriptions by 2015, a ten-fold increase over five years, and envisions 50 billion connected devices by 2020. Ericsson’s findings show that data traffic grew 280% globally during each of the last two years, and is forecast to grow 90% annually over the next five years. (Source: Ericsson Consumer Lab Mobile Broadband Study 2010)

Marten Pieters, Managing Director, Vodafone Essar, said, “Globally, Vodafone provides enhanced 3G experiences to a large base of customers. India is now ready for 3G, and we are committed to offer similar high-quality 3G services to our Indian customers. Ericsson is one of the specialists in this area and we view this as a very strategic alliance, in order to deliver and maintain a high quality network which customers will expect from Vodafone.”

Gowton Achaibar, Head of Region India, says: “We are extremely honoured to be chosen by Vodafone Essar for their 3G HSPA network deployment in India. The contract further strengthens Ericsson’s position as the leading mobile communications supplier in the Indian market and demonstrates yet again our long-term strategic partnership with Vodafone Essar. We are confident that our undisputed technology leadership and global experience will contribute to the rapid expansion of India’s mobile Broadband market.”

Under the agreement with Vodafone, Ericsson will provide supply the RAN system, network rollout services, tuning, spare parts and training services, along with the 3G common core platform and transmission over the coming months. The radio access network will include the latest multi-standard radio base station RBS 6000 and mobile soft-switching technology, which will drastically boost the capacity of the network and evolve it into an IP network. With such solutions, Ericsson will also help Vodafone to achieve their energy saving goals. The framework contract will be implemented through 2010 to 2012. Deliveries and deployment will soon begin.

Ericsson has acquired a minority stake in Novatium Solutions Private Ltd. with an aim to speed up the broadband enabled user services in emerging economies. Novatium launched its commercial service in November 2009 and has 40 employees in its Chennai office and 35 employees in the field throughout India. Novatium offers a PC together with cloud-based services via telecom operators gives Ericsson exciting opportunity to support an innovative local business in a fast growing market that will further increase the need of mobile broadband

Via agreements with various software companies, Novatium offers a PC together with cloud-based services through telecom operators and distributors’ network, where the consumer buys his or her choice of a service-package, for example anti-virus, photo editing or office programs, as a thin client on a monthly basis. Primarily, this service addresses the needs of first-time Internet and PC users, both from simplicity as well as from an affordability perspective.

With Ericsson acquiring a minority stake in Novatium, the company will have funding and competence to further develop the offering and grow outside India in markets with similar needs. For Ericsson the agreement offers an exciting opportunity to support an innovative local business in a fast growing market that will further increase the need of mobile broadband.

Acknowledging the importance of cloud based services, Gowton Achaibar, head of Region India, Ericsson, said, “The business concept PC as-a-service is a strong offering addressing an important growing segment in the Indian market. With this engagement I see potential business synergy benefits to both Novatium and Ericsson and our respective customers.”

Alok Singh, CEO Novatium Solutions Pvt. Ltd. said, “This strategic relationship with Ericsson encompasses a great opportunity for Novatium as we are partnering with a global organization with the best technology know-how, which will help us develop our offering and introduce it to new markets.”

The middle income consumers and the first time PC owners are the primary contributors to the growth of PC usage in India, while connectivity to internet and cloud based services are important enablers.

The PC-as-a-service with cloud environment also brings a business opportunity to the telecom operators as it provides differentiated broadband pricing based on what services the consumer wants to have access to. This not only allows operators to increase their revenues from a service revenue share but also increases the addressable broadband market by lowering consumers’ entry barriers with affordable PC’s and related services.

Novatium has contracts with some of the major Indian telecom operators like Bharat Sanchar Nigam Ltd (BSNL), Mahanagar Telephone Nigam Ltd (MTNL), Bharti Airtel and TATA.