Cable & Wireless, Ericsson seal FMC deal

Telecoms-kit company Ericsson has signed a five-year, £30m contract with telco Cable & Wireless to supply and manage a GSM mobile network that will let Cable & Wireless sell FMC (fixed-mobile convergence) services.

FMC enables mobile-phone calls to be switched between a cellular network and a VoIP network, meaning users only need one handset for both types of call.

In May, Cable & Wireless announced Tesco as its first FMC customer. The supermarket giant signed a £100m deal with Cable & Wireless for the overhaul of its telecoms network, including the installation of fixed networking for stores and FMC services based on picocells, to route the calls over fixed-line DSL.

Ericsson said the network will provide indoor fixed and mobile coverage for Cable & Wireless's enterprise users, including Tesco. The network will be based on small and low-power GSM base stations.

Under the deal, Ericsson said it will also provide Cable & Wireless with a variety of professional services, including design and systems integration.

Cable & Wireless acquired a licence for FMC services back in 2006, shelling out more than £50,000 for a GSM spectrum band.