Benzinga | Jul 8, 2021 11:11AM EDT

Millicom To Incur $135M To Update Ericsson's Mobile Networks Partnership In Honduras, Paraguay, Bolivia

* Millicom International Cellular SA (NASDAQ:TIGO) will be investing $135 million over the next two to three years to upgrade its mobile network in partnership with Telefonaktiebolaget L M Ericsson (NASDAQ:ERIC) in three critical Latin American markets, Honduras, Paraguay, and Bolivia.

* The collaboration will enable Millicom to achieve the additional capacity to manage the pandemic-driven traffic surge by modernizing its networks with LTE, 5G-ready technology.

* Millicom will modernize its network using the latest Ericsson Radio System products and solutions, paving the way for 5G deployment across the continent.

* Ericsson will also replace TIGO's current 4G packet core and introduce Ericsson's dual-mode 5G Core as part of the project.

* Millicom held $780 million in cash and equivalents as of Mar. 31, 2021.

* Price action: ERIC shares traded lower by 0.69% at $12.95, and TIGO shares traded higher by 1.30% at $39.83 on the last check Thursday.