C&W pays £30m for FMC

Telecoms kit company Ericsson has inked a five-year, £30m contract with telco Cable & Wireless to supply and manage a GSM mobile network that will let C&W 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.

Back in May, C&W announced Tesco as its first FMC customer. The supermarket giant signed a £100m deal with C&W 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 C&W's enterprise users, including Tesco. It will be based on small and low-power GSM base stations.

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

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