Ericsson Sells its GPRS Research Center

Teleca and Ericsson have signed a letter of intent to enter into an outsourcing agreement where the GPRS R&D unit from Ericsson Norway will be transferred to Teleca. As part of the agreement approximately 70 employees will be moved from Ericsson to Teleca in Norway.

"The planned agreement has been made possible through Teleca's strong position in the market for outsourced R&D", says Nick Stammers, CEO of Teleca. "The agreement will be important because it will increase Teleca's strength in the Nordic region and further increase our competence in the global market for GPRS and 3G."

Teleca expects the outsourcing agreement to have an immediate positive effect on Teleca's earnings and normal Teleca margins are expected within two years. The agreement is expected to be finalised in October 2002 and the company will make more information will be available at that time.'"

Posted to the site on 1st October 2002