Ericsson announced Monday that it will supply wireless networking gear to Telefonica Moviles' networks in Spain and Germany for $352 million (400 million euros). Ericsson will start installing the equipment by June 1 in Spain, and will upgrade more than 700 base stations over a three-year period with gear that runs on the(Universal Mobile Telecommunications Standard). Spain-based Telefonica also tapped Ericsson as its main supplier of gear in Germany, where it operates under the Quam trademark. Quam is 57.2 percent owned by Telefonica Moviles and 42.8 percent by Sonera.
According to recent reports, high development costs for 3G, or third generation, wireless networks are expected to weigh down Ericsson's revenue for 2002. Ericsson posted a loss in 2001 on top of lower sales from the previous year.