Ericsson has been selected by mobile satellite operator Inmarsat Ltd for the development of its next generation core network for the company's Broadband Global Area Network (B-GAN), planned for launch in 2004. The contract is valued at USD 55 million.

Ericsson as sole supplier for the core network will deliver infrastructure including routers from its comprehensive 3G product portfolio, network management solutions and a host of professional support services.

Ericsson's equipment will provide the call routing and mobility management functionality for Inmarsat's new B-GAN ground stations enabling connectivity to the fixed and mobile terrestrial phone and data networks in conjunction with Inmarsat's service providers.

Inmarsat's B-GAN service will offer third generation (3G) compatible services including video conferencing to customers over nearly the entire globe. Inmarsat will focus on providing high-bandwidth services in areas where existing telecom infrastructure does not exist or cannot support content-rich applications. This next generation of services will offer data transmission rates of up to 432 kbit/s, significantly increasing the existing traffic capacity.

"Inmarsat has selected Ericsson as a partner based on our market leadership, our technology expertise, our comprehensive knowledge and experience in the satellite market," said Rory Buckley, President, Ericsson Ltd. "We are extremely pleased to build on our existing relationship with such a key and successful player in the market."

In addition, Ericsson will deploy a comprehensive suite of IP backbone equipment including its industry leading AXI 520-4 series IP Backbone Routers (based on Juniper Networks M20TM routers) and its internally developed AXC 711 Tigris access routers as well as Extreme Networks' LAN Switches. Ericsson also will provide GPRS Gateway Service Nodes (GGSN) from Ericsson Juniper Networks Mobile IP as well as extensive customer services, such as integration, support and training.

In July 2000, Ericsson was awarded a major contract with Inmarsat for delivery of a GPRS core network, IP backbone and business support system for a precursor to the B-GAN service, which is due for launch at the end of 2002.