Ericsson signs US defence deal

Ericsson have agreed a multi-million dollar contract to deliver a 3G-based communcation satellite system to US defence concern General Dynamics.

The order for the so-called Mobile User Objective System (Muos) is reportedly worth 200 million dollars and will deliver voice, text and image data to military units operating on land, air and sea.

Ericsson have not divulged how long the contract will last.

Ericsson’s spokesman, Peter Olofsson, said that the company has never signed a contract for this type of product with an international defence organisation before.

“The order is a strategically important breakthrough,” Olofsson told TT.

Meanwhile, the company has also agreed a deal to handle the development of Telia Sonera and Tele 2’s jointly owned Svenska UMTS 3G-network. The deal, worth an unspecified amount, is initially for three years.

Ericsson will ensure that Telia Sonera’s and Tele2’s existing GSM-networks work in conjunction with the 3G-network.

Sources: Dagens Nyheter, Svenska Dagbladet