Ericsson, Turkcell Sign $850 Million Mobile Network Contract

Turkcell (Istanbul, Turkey) has chosen Ericsson (Stockholm, Sweden) as the leading supplier for enhancing its GSM network. The contract, valued at $850 million, encompasses GSM system infrastructure to meet a rapidly increasing user base. This agreement follows a $520 million contract between the two companies in February 1999, and another $550 million contract in August.

The expansions will enable the carrier to serve more geographic areas and offer increased capacity in high-density areas. Turkcell will increase its network capacity considerably. Right now, it boasts 7.7 million users, which corresponds to a market share of about 70%. By enhancing its network, the carrier can gain a competitive edge as user demands increase for more sophisticated wireless datacom services. With this new agreement, it will be able to purchase several of Ericsson's latest GSM solutions, such as its open GPRS (General Packet Radio Services) system, GSM on the Net, and GSM Pro.

Ericsson's GPRS system introduces packet data to mobile networks. GSM on the Net integrates IP networks with GSM mobility and technology, for example giving corporate users one-number, one-phone benefits. GSM Pro enables organizations to have two-way radio functionality and other Private Mobile Radio services over the public GSM network, rather than building private radio networks.

Edited by Ellen Jensen