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. Last Updated: 07/27/2016

Ericsson, Rom Telecom Sign $5 Million Deal

BUCHAREST -- Romanian state telephone company Rom Telecom RA has signed a $5 million deal with Sweden's Ericsson to upgrade the communications network in one of the country's northern provinces, a Romanian official said.

"Under the project, a digital exchange produced by Sweden's leading communications equipment maker, 16 mini-exchanges and 174 kilometers of optic fiber cables will connect 13 villages and three towns in the county of Maramures," Communications Ministry spokesman Constantin Sofronie said last week.

A credit from Sweden's Nordbanken will finance the $5 million project, he said. "The 8.5-year loan, guaranteed by Ericsson and administered by the Romanian Bank for Foreign Trade, was granted on advantageous terms," a ministry source said, declining to give details.

Romania's communications infrastructure was badly neglected during the communist era. Rom Telecom has deals with France's Alcatel and Siemens of Germany to develop and upgrade its communications by the year 2000.