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. Last Updated: 07/27/2016

Ericsson Loses $2M St. Petersburg Contract

ST. PETERSBURG — A $2 million contract for the delivery of intelligent networks between St. Petersburg Intercity and International Telephone, or SPMMT, and the Swedish company Ericsson was canceled Monday, said Vladimir Akulich, director of public relations at St. Peterburg Telephone, or PTS.

Intelligent networks control telecommunications services through computer-based, service-independent platforms rather than from traditional telephone exchanges.

The cancellation is said to have resulted from the merger of PTS and SPMMT at the end of 2000.

On Monday, representatives of Ericsson’s Russian office announced they had received a letter from SPMMT terminating the contract.

The directors of Ericsson and SPMMT signed a protocol of intent in February 2000 and concluded a contract at the beginning of June. Ericsson was scheduled to deliver the equipment in August.

The installation of intelligent networks would have expanded the variety of services offered between cities. By far the most valued ability of intelligent networks is their ability to provide complete information about services free to subscribers calling tollfree and the installation of a link for collect calls, teleconferences and voting by telephone.

Akulich said the reason for the termination of the contract was that Ericsson had failed to certify its equipment on time. Ericsson representatives insist the certification procedure for the intelligent networks had been completed.