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Ericsson awarded USD 500 million contract to expand T-Mobile USA's
wireless network

Ericsson and T-Mobile USA Inc., a member of the T-Mobile
International group, the mobile telecommunications subsidiary of
Deutsche Telekom AG, today announced an agreement to expand and
upgrade the operator's wireless network to support customer growth
and demand for GPRS and higher-speed EDGE data networks. The contract
extension is valued at USD 500 million.

Ericsson will deploy GSM (Global System for Mobile Communications),
GPRS (General Packet Radio Service) and EDGE (Enhanced Data Rates for
GSM Evolution) 1900 MHz network radio access equipment and associated
services in two new markets: Western Virginia and certain uncovered
areas of New England, where T-Mobile's footprint is expanding.
Additionally, Ericsson will upgrade and expand T-Mobile USA's core
network infrastructure, radio access equipment and associated
services in 18 markets in which Ericsson equipment is already
installed. Those markets include Atlanta, Boston, Miami, New Jersey,
Philadelphia and Washington D.C.

EDGE upgrades will enhance T-Mobile's capabilities to support new
personalized GET MOREâ services like two-way text messaging, web
browsing and t-zonesSM data offers for picture taking, music making
and game playing. Additionally, the agreement calls for Ericsson to
deploy Adaptive Multi Rate (AMR) technology for increased radio
access capacity and improved quality across the Ericsson footprint.
Deliveries under the agreement will begin immediately.

"The deployments will enable T-Mobile USA to leverage and augment
Ericsson's presence across our national footprint to provide greater
capacity in a very cost-effective manner," said Tim Wong, Executive
Vice President and CTO, T-Mobile USA. "In addition to positioning us
to support our growing subscriber base, Ericsson is helping deliver
personalized service offerings that allow us to deliver on our Get
More® promise to our customers and ensure they have a consistent,
reliable, quality experience."

"Ericsson is proud of its long-standing support of T-Mobile USA, from
early GSM deployment and nationwide digital network buildout to the
launch and support of the first multimedia messaging service (MMS)
service in the Americas," said Angel Ruiz, President and Chief
Executive Officer, Ericsson, Inc. "Ericsson looks forward to
continuing its successful partnership as T-Mobile USA continues its
industry-leading growth while building and maintaining a high quality
network for its customers."

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.

Read more at http://www.ericsson.com/press

FOR FURTHER INFORMATION PLEASE CONTACT

At Ericsson:
Kathy Egan, Ericsson Inc. Corporate Communications
Phone: [phone]; E-mail: [e-mail]

Glenn Sapadin, Ericsson Inc. Investor Relations
Phone: [phone]; E-mail: [e-mail]

James Borup, Ericsson Corporate Communications
Phone: [phone]; E-mail: [e-mail]

At T-Mobile USA:
Kim Thompson, T-Mobile USA, Corporate Communications
Phone: [phone]; E-mail: [e-mail]

About T-Mobile USA, Inc.
Based in Bellevue, Wash., T-Mobile USA, Inc. is a member of the
T-Mobile International group, the mobile telecommunications
subsidiary of Deutsche Telekom AG (NYSE: DT). T-Mobile operates the
largest GSM/GPRS 1900 voice and data network in the country, reaching
over 245 million people including roaming and other agreements. In
addition, T-Mobile operates the largest carrier owned Wi-Fi (802.11b)
wireless broadband (WLAN) network in the country, available in more
than 2,600 public access locations including Starbucks coffeehouses,
Borders Books and Music, airports and American Airlines Admirals
Clubs, United Red Carpet Clubs and Delta Air Lines Clubs. T-Mobile is
committed to providing the best value in wireless service through its
GET MORE promise to provide customers with more minutes, more
features and more service than any other wireless provider. For
purposes of this press release, references to T-Mobile USA, Inc.
consist of T-Mobile USA, Inc. and Powertel, Inc. For more
information, visit the company web site at www.t-mobile.com



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