Ericsson wins Ethernet DSL broadband network contract with Eesti Telefon

2 June 2003 Stockholm Lightwave Europe--Ericsson has been awarded a contract by Eesti Telefon to supply the DSL network of the national Estonian operator.

The order is the first announced commercial contract in Europe for Ericsson's Ethernet DSL Access solution that features the world's smallest DSL Access Multiplexer (DSLAM).

Ericsson will provide Eesti Telefon with ADSL lines across rural areas in Estonia. Ethernet-based, high-speed Internet services will now be available for homes and businesses in rural areas that otherwise would have been too costly to reach.

The network will eventually take over all the voice traffic in rural Estonia. The network is expected to handle voice calls, using Telephony-over-IP technology, by the end of 2003.

"Ericsson's Ethernet DSL Access solution enables us to offer cost-effective, low-risk ways to satisfy the demand for always-on bandwidth. We have always had a very good co-operation with Ericsson and by choosing Ericsson's EDA solution, we will save costs," says Toivo Praakel, Director of Backbone Network in Eesti Telefon.

The ADSL lines will be delivered using Ericsson's compact, scalable Ethernet DSL Access solution, a cornerstone of Ericsson's Public Ethernet offering. The solution enables standard ADSL lines to be offered economically at smaller sites (starting from eight subscribers) and uses Ethernet technology to provide cost-effective high-bandwidth links in the 'second mile' network.

"We are happy to obtain another customer confirmation that our Public Ethernet vision is the right one. Faster and cost-effective deployment of an Ethernet based network is very important to Eesti Telefon. It is our privilege to help our long-time customer achieve their goals in fast-growing DSL market and offer their customers high-speed Internet services in Estonia," says Veiko Sepp, President of Ericsson Estonia.

Estonia is experiencing a strong demand for ADSL. In a country with a population of 1.5 million, Eesti Telefon has 32,500 DSL lines today and expects to have 15,000 new broadband subscribers by the end of 2003. In Estonia, 4.1% of all lines are DSL. Ericsson has previously supplied most of Eesti Telefon's Gigabit Ethernet based Metropolitan Area Networks in major cities in Estonia as well as their Data Backbone Core Network in the country.