Ericsson's Telstra Order Not Affected By Investment Halt

STOCKHOLM -(Dow Jones)- Australian telecom operator Telstra's decision to halt investments in a new high-speed network doesn't affect Swedish telecom equipment vendor Ericsson's contracts to upgrade Telstra's mobile network, an Ericsson spokeswoman said Monday.

Telstra Monday said it had abandoned plans to build a A$4 billion high-speed 'Fiber-To-The-Node' network after reaching an "impasse" with the regulator.

"This doesn't concern us. Our contracts with Telstra continue as before," said Ericsson spokeswoman Kristina Haegg-Blecher.

Ericsson is a key supplier to Telstra's expanded and upgraded third-generation mobile network which is planned to be operational by March 2007.

Ericsson hasn't given a contract value for the Australian order but Telstra is reported to plan a A$1 billion investment in the network.

-By Magnus Hansson, Dow Jones Newswires;+46 8 545 130 91, magnus.hansson@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 7th August 2006