Under this deal, Ericsson will supply its in-house brand of MINI-LINK point-to-point microwave links as well as its newly acquired Marconi-branded LH point-to-point SDH microwave products, including high-capacity radios, smart traffic nodes, and both long- and short-haul systems.

The solution will enable Telenor to deliver cost-efficient coverage, high capacity for fixed and mobile broadband, and highly competitive 'second mile' backhaul solutions. Official announcement of this deal, however, says nothing about its financial value.

Sivert Bergman, Head of Broadband Networks at Ericsson, says, "This new agreement confirms our position as a major partner to Telenor globally, and takes our business relationship a step forward. With our strong product portfolio and our market and customer knowledge, we can meet any capacity and reliability requirements, quickly and efficiently."

This is the very first sizable sales announcement made by Ericsson about Marconi products after acquiring this iconic UK technology company in late 2005. It has enabled the Swedish vendor to build up a complete portfolio of transmission systems for fixed and mobile broadband networks.

Ericsson is the sole provider of GrameenPhone's core and radio access network products. The Swedish company will, however, face stiff competition in the transmission segment as it has only 15 percent market share in the PDH radio in GP's network. Siemens of Germany and Japanese NEC respectively meet 50 percent and 35 percent requirements of GP's PDH radio. The German vendor has also supplied 80 percent SDH radio to GP while NEC has provided the remaining 20 percent, according to sources.

Siemens has recently announced a merger with Nokia's network division and starting from January 1, 2007, the new entity will operate globally. Sources believe that might make Ericsson's entry a bit more difficult in GP unless the Swedish vendor comes up with a commercial miracle.