Ericsson has won an SR320 million ($85 million) contract to install and operate a smart city infrastructure and multi-purpose network for Ethraa, The Smart City.
The global telecom company was awarded the contract by Emaar, the Economic City (Emaar.E.C), the Tadawul-listed company developing King Abdullah Economic City (KAEC).
Ethraa, The Smart City is mandated with developing the region’s first smart city in KAEC. It will develop the information and communications technology (ICT) infrastructure of the mega-project.
Ericsson joins Emaar.E.C and a range of global ICT players such as Cisco, Orange Business and HP in the initiative.
Fahd Al-Rasheed, CEO and board member, Emaar.E.C, and Bjorn Hemstad, chairman, Ericsson Central Europe, Middle East and Africa (Cema) region, signed the agreement in Jeddah recently.
Ericsson will design, build and operate the entire telephony, internet and data system plus the video broadcasting infrastructure for all investors and residents within KAEC under the supervision of Ethraa, The Smart City. It is expected that operations will start in January 2009 and extend to January 2012.
Al-Rasheed commented that the initiative had been specifically planned to build KAEC’s smart city capabilities and create a robust, efficiency-driven platform of growth for its investors. He noted that Ericsson had globally proven competencies and cutting-edge technological expertise. The partnership brought in best-in-class ICT capabilities to KAEC and the kingdom.
The official added that today’s competitive economic environment necessitated giving extra value to customers. KAEC’s smart city capabilities would be a draw for international investors who are assured of real-time and efficient support systems. Integration of various components such as utilities, security, healthcare, industrial zone services and other aspects of living under the smart city network would enhance the residents’ quality of life.
 Hemstad remarked that Saudi Arabia was one of the key markets in Ericsson’s expansion across Cema and the partnership with King Abdullah Economic City would help Ericsson to showcase its capabilities in smart city design, management and operation. With the agreement, Ericsson would bring to KAEC residents and tenants breakthrough innovations.
Ethraa is derived from an Arabic word to mean enrichment. “The goal of the smart city is to enrich the lives of KAEC residents through innovative telecom, communication facilities and integrated new-generation IT applications,” said Omar Al-Khudairi, senior director, Ethraa, The Smart City. “The award to Ericsson is also a benchmark in cost and technological perspectives as it will enable all KAEC residents and tenants to enjoy advanced IT and telecom connectivity at a globally competitive price from day one.”
Yahya S Hamidaddin, smart cities development director at the Saudi Arabian General Investment Authority, remarked: “This initiative is a cornerstone in developing a state-of-the-art infrastructure to attain our goal of developing KAEC as a true smart city. The network will support the latest emerging technologies of convergence and ensure access to innovative services for the public and various industries and enterprises within KAEC.”
Ericsson will undertake an extensive recon and survey of KAEC and custom-develop the smart city infrastructure through a dedicated R&D team. The ICT foundation it will develop will ensure that investors and residents in KAEC will have access to the highest broadband connectivity possible, telephony and multimedia including seamless video connectivity.
Over 1,000 networks in more than 175 countries utilise Ericsson’s equipment and 40 per cent of all mobile calls are made through its systems. Reflecting on the company’s ongoing commitment to technological leadership, it has one of the industry’s most comprehensive intellectual property portfolios containing over 23,000 patents.
King Abdullah Economic City, spread over 168 million sq m on the Red Sea coast, is the largest private sector development in the region, and has six key components – the Sea Port, Industrial Zone, Central Business District, Educational Zone, Resort District and Residential Communities.