Yoigo, a subsidiary of TeliaSonera and Spain’s fourth-largest operator, has entered a new agreement with Ericsson to extend its current 3G HSPA mobile broadband network. The agreement makes Ericsson Yoigo’s single vendor of the latest technology in the radio access and core network and the only managed services partner.

The extension will increase Yoigo’s network coverage and meet the needs of the operator’s growing number of subscribers. It will also allow the company to increase its profitability and competitiveness and get ready for 4G/LTE. The agreement runs until December 2014 – and the existing managed services contract that was due to end in September this year has been extended until the end of 2014.

Yoigo’s Chief Executive Officer, Johan Andsjö, said that the new agreement represents the company’s commitment to the Spanish market. In a country with 55 million mobile subscribers – a 112.5 percent penetration rate – the competition between mobile operators is tough.

Johan Andsjö, CEO of Yoigo, said: “Our customer base has grown in a short amount of time; increasing 51% in 2010. By extending the existing managed services agreement with Ericsson, we guarantee that our customers maintain the high level of satisfaction that we have achieved.”

Ingemar Naeve, Head of Ericsson Spain, said: “Being Yoigo’s sole managed services partner from their start of operations in 2006 makes it extra special for us to continue to extend their mobile broadband network and enable them to enter the next era of 4G/LTE.”

Deliveries will include radio access, circuit switched core, packet switched core, expansion and upgrade of charging systems.