In a milestone for Vietnam telecom sector, Ericsson and Hanoi Telecom announced a deal worth $ 450 million which will involve Ericsson developing and modernizing the mobile network of Hanoi.

The comprehensive responsibilities of Ericsson include management, operation, network design as well as comprehensive range of professional services including network deployment and systems integration.

Ericsson will also oversee Hanoi’s migration from CDMA to GSM platform. Further Ericsson will serve as the sole supplier of all IP circuitry and packet core network in addition to supplying radio access network equipment as well as optical and microwave transmission requirements.

Ericsson will now set-up a new office in Danang City.

Dr. Pham Ngoc Lang, Chairman of Hanoi Telecom, said on the deal, "This strategic partnership with Ericsson is a first in Vietnam. It will provide us with a competitive advantage by allowing us to focus on our core business and help position us for rapid nationwide expansion."