ABB in new mobile telecom cooperations with Nokia and Ericsson

Big business potential in building mobile telecommunications networks

Zurich, Switzerland, October 05, 2000 – Global technology group ABB said today it has formed separate agreements with Nokia and Ericsson to build new-generation mobile telecommunications networks, highlighting ABB’s strategy to become a major player in IT infrastructure.

ABB said both agreements are aimed at offering rapid execution of so-called 3G (3rd generation or UMTS) mobile communications networks currently under development in most European markets.

In the Nokia cooperation, covering Europe, the Middle East and Africa, ABB will handle network planning, site acquisition, construction works, installation and commissioning, based on products and systems from Nokia Networks. Ericsson, already chosen by 14 operators as 3G supplier, has appointed ABB a Global Authorized Service partner in the mobile communications field, with similar network building responsibilities.

“We are proud to be associated with Ericsson and Nokia, and we feel we bring a unique combination of skills to these partnerships,” said Göran Lindahl, ABB’s President and CEO. “As ABB expands into IT infrastructure for mobile, wireless and Internet communications, we build on a high-tech tradition and a proven ability to meet high demands for reliability. Moreover, in ABB we have solid know-how in both the financing and execution of large infrastructure projects.”

3G networks can transmit large amounts of data to cellular phones and other wireless handheld devices. This allows a wide range of IT applications – from broadband multimedia on the Internet to industrial control software programs – to be freed from conventional fixed points of access, such as desktop computers.

ABB has designed and implemented – and is servicing – telecommunications
infrastructure for both fixed and wireless communications in the Nordic countries, Australia, Austria, the Benelux countries, the Czech Republic, Germany, Poland, Switzerland and other countries in Europe.

ABB delivers the full range of project management and installations for telecommunications base stations and Internet Data Centers (so-called points of presence, or POPs) – including lighting, security, temperature control, and emergency power – as well as systems to ensure a reliable power supply.

In total, ABB has some 2,000 people working in the telecommunications area, generating revenues of approximately US$ 500 million a year.

Two weeks ago, ABB won a US$ 150-million order to design, maintain and upgrade the Telecommunications Access Network in five of Australia’s States and territories. ABB is also currently building Internet data centers in several European countries, and is in a consortium – made up of Deutsche Telekom’s mobile communications unit and Utfors – applying to build a broadband wireless network for Sweden.

The ABB Group (www.abb.com) serves customers in power transmission and distribution; automation; oil, gas, and petrochemicals; building technologies; and in financial services. With novel IT applications, tailored software solutions, growing eBusiness and a fast-expanding knowledge and service base, ABB is building links to the new economy. The ABB Group employs about 160,000 people in more than 100 countries. (END)

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    Contact us

    • Thomas Schmidt
      ABB Corporate Communications, Zurich
      Tel: +41 1 317 7354
      Fax: +41 1 317 7958
    • Pia Irell
      ABB Investor Relations, Zurich
      Tel: +41 1 317 7266
      Fax: +41 1 317 9817
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