Ericsson Worldwide

The 'Industry Viewpoint' section offers a view from Ericsson on emergent technologies, new products and industry trends. This time, we look at how charging processes and systems need to evolve to support operators in marketing and generating revenue from new services:

SERVING THE NEXT BILLION MOBILE USERS

The number of mobile subscribers globally has just hit one billion and is expected to double by 2008. The vast majority of this subscriber growth will come from new high-growth markets in Asia-Pacific, Africa, Central and Eastern Europe, the Middle East and Latin America.

The big question for operators is how they can serve these users profitably and leave room for growth and service development over time – when a large number of them are expected to spend less than US$5 a month.

In urban areas, new subscriber growth will put more pressure on existing radio network capacity. In rural areas, the will be to provide cost-effective transmission and coverage to make network extension viable.

Operators may be tempted to deploy the lowest-cost radio solutions available to minimize capital expenditure and maximize profitability. A better option is to take a longer term view and focus on minimizing Total Cost of Ownership (TCO). In this way, operators can reduce the overall cost of building and running the network while also maintaining high service quality and scalability to meet future subscriber and service expansion.

Several advances in GSM/EDGE and CDMA2000 radio solutions have been made specifically to tackle the challenge of delivering optimized radio coverage in regions where little or none exists today, in a cost-effective, low-risk way.

For instance, there are new radio systems using features to optimize downlink power and uplink sensitivity, that enable the delivery of much larger cell areas from a single Radio Base Station (RBS), reducing the number of radio sites required in a particular location. In this way, CAPEX per square kilometer can be reduced significantly - often by more than half.

The latest radio technologies offer coverage-optimized solutions that provide a very flexible way to add capacity as traffic demands take off - up to ten times initial capacity with just one site visit. However, the operator only has to make the decision to add capacity once traffic levels have grown substantially, reducing investment risk and making pay-back calculations more realistic.

In addition, a scalable mobile core is needed to support profitable penetration - so operators can build out their network step by step as the number of subscribers and capacity demands increase. In this way, investments can always be kept at a minimum.

To find out more about how Ericsson's Expander solutions help operators address the next billion users, please go to
http://www.ericsson.com/press/archive/backgrounder/expander_feb04.pdf

Mobile Communications

ERICSSON GOES INTERACTIVE AT MILIA 2004

As a first-time exhibitor at interactive media forum MILIA in Cannes, Ericsson demonstrated how it can help the industry develop attractive mobile media applications for consumers. Visitors to Ericsson's stand could see the M-USE music platform, Mobile Movie Concept and Video-C in action. The company was also involved in demonstrations of AFP's MMS TV, N24's Live Video Streaming and the payment service IPX.
http://www.ericsson.com/press/20040324-100012.html

NOTE: Ericsson has just published a new white paper on mobile multimedia. To download it, please go to
http://www.ericsson.com/products/white_papers_pdf/mobile_multimedia.pdf.

SWITZERLAND'S SUNRISE TO OFFER M-USE MOBILE MUSIC SERVICE

Sunrise, a leading Swiss provider of mobile, fixed and Internet services, is deploying Ericsson and Sony Music's mobile music service, M-USE. The Sunrise M-USE service will feature music clips, artist pictures and music news. The advanced personalization engine of M-USE can also recommend artists and tracks based on a customer's individual music taste.
http://www.ericsson.com/press/20040224-080211.html

ERICSSON BUILDS LEAD IN THIRD-GENERATION MOBILE INFRASTRUCTURE

The first quarter 2004 saw continued momentum for Ericsson's leadership in third-generation mobile infrastructure.

Austrian operator ONE chose Ericsson as the sole supplier for its UMTS radio access network, strengthening the long-standing partnership between the two companies. The contract has a value of up to EUR160 million (http://www.ericsson.com/press/20040405-165106.html).

Ericsson will also upgrade the network of Malaysian operator DiGi in Kuala Lumpur and the surrounding area with EDGE equipment. DiGi is one of Malaysia's leading mobile communications providers and a subsidiary of Norway's Telenor group (http://www.ericsson.com/press/20040318-103635.html).

Meanwhile Swisscom Mobile is relying on Ericsson to upgrade its nationwide GSM network with EDGE under a contract valued at more than SEK600 million. The EDGE network will complement Swisscom's existing WCDMA network. (http://www.ericsson.com/press/20040329-103208.html).

At CTIA in Atlanta, Ericsson demonstrated implementation of CDMA2000 1xEV-DV revision D using its commercially available CDMA2000 1X product portfolio. CDMA2000 1xEV-DV Revision D will provide data rate enhancements and allows for more efficient utilization of radio resources.
http://www.ericsson.com/press/20040322-151200.html

NOTE: Please also see Ericsson's 3G reference list at
http://www.ericsson.com/press/3g_referencelist.shtml.

EXPANDER PORTFOLIO GROWS

Having launched its new Expander range in February, Ericsson followed up with the announcement of a 450MHz CDMA2000 platform, the RBS 1143 CDMA2000 1X radio base station and a new tower mount amplifier (TMA). The products are designed to improve coverage and offer scalable capacity while providing cost-effective solutions for high-growth markets.
http://www.ericsson.com/press/20040218-093136.html
http://www.ericsson.com/press/20040316-150208.html

GSM CONTINUES TO FLOURISH

In the 2G domain, Irish operator Meteor has chosen Ericsson as the sole supplier for core and radio infrastructure as part of the expansion of its GSM network. The contract includes professional services beginning with an immediate network and coverage build-out this year, and continuing with the expansion of advanced services and network capability until 2008.
http://www.ericsson.com/press/20040312-090134.html

Ericsson will also help expand Econet Wireless Nigeria's GSM network to achieve greater geographic coverage and double network capacity, especially in high-traffic areas like Lagos and Abuja. Econet currently has more than one million subscribers nationwide and the expanded network will support rapid subscriber growth and simplify the introduction of new services.
http://www.ericsson.com/press/20040225-140132.html

Broadband and Multiservice Networks

FOOTPRINT OF ETHERNET DSL ACCESS CONTINUES TO EXPAND

Ericsson's successful Ethernet DSL Access solution added two more operators to its reference list. Makedonski Telekomunikacii AD has enlisted Ericsson's help with rolling out a DSL network to provide broadband Internet access in the capital Skopje and other cities. (http://www.ericsson.com/press/20040323-193215.html)

Vaasa Telephone Company, part of the Finnet group, will deploy Ethernet DSL Access to offer services based on new ADSL2 line coding techniques. Vaasa Telephone Company has been testing television broadcast services based on IP multicast and Voice over IP solutions for some time. Ethernet DSL Access will now enable it to offer enhanced bandwidth and extended reach to their customers.
(http://www.ericsson.com/press/20040223-110941.html)

FRANCE TELECOM AND ERICSSON JOIN FORCES FOR IP MULTIMEDIA

Also during the last quarter, France Telecom and Ericsson joined forces to develop IP multimedia services for the consumer market. This strategic partnership aims to create services that will enhance consumer experience and reachability across fixed and mobile networks.
http://www.ericsson.com/press/20040212-170129.html

Enterprise Communications

ERICSSON ENTERPRISE EXPANDS NORTH AMERICAN DISTRIBUTION NETWORK

Ericsson Enterprise has established a new, expanded distribution network covering the USA and Canada. Specialist technology distributor MarketShare Telecom will take over the role of master distributor and develop a comprehensive network of resellers and partners in North America. Through its large footprint in the USA and Canada, MarketShare Telecom will help Ericsson drive brand recognition and sales, focusing on IP-enabled hybrid PBX and new mobile enterprise solutions such as contact centers, messaging, data networking and cabling.
http://www.ericsson.com/press/20040301-140145.html

HP TEAMS WITH ERICSSON TO DELIVER UNIFIED COMMUNICATIONS FOR BUSINESSES

Extending the two companies' long-term alliance, HP and Ericsson have agreed to jointly deliver a unified communications solution for businesses. The solution combines telephony and information technology infrastructures, as well as service provider and private enterprise networks. It enables companies of all sizes to provide seamless voice and data services for employees, whether they are in the office or on the move - using the same phone for both mobile and fixed calling.
http://www.hp.com/hpinfo/newsroom/press/2004/040218b.html

Managed and Professional Services

ERICSSON EFFORTS BEAR FRUIT IN SWITZERLAND

Ericsson is providing field services to Orange Communications SA in Switzerland under a managed services agreement that covers maintenance of site infrastructure and system technology. Half of Orange Switzerland's GSM network is now managed by Ericsson, including maintenance of systems delivered from a range of manufacturers including Ericsson's own microwave products.
http://www.ericsson.com/press/20040225-100108.html

US OPERATOR ALLTEL HANDS PICTURE MESSAGING SERVICE TO ERICSSON

Ericsson has announced that it is integrating, hosting and managing Alltel's Axcess Picture Messaging service throughout the US operator's CDMA coverage area. In addition to hosting and integrating the MMS platform, Ericsson is providing round-the-clock operation and maintenance of the service, enabling Alltel to focus on other core products and services.
http://www.ericsson.com/press/20040225-100155.html

NOTE: Ericsson's managed services offering now also includes a hosting service for applications and content management. It enables operators and service providers to introduce new mobile services more quickly and securely. For further information see http://www.ericsson.com/press/20040225-100242.html.

Handset Evolution

3G SERVICES DEMONSTRATED AT 3GSM WORLD CONGRESS

Visitors to Ericsson’s stand at 3GSM World Congress in Cannes in February could experience live video telephony and different streaming services as proof of the great steps taken to enable WCDMA interoperability between commercial handsets and systems. Using interoperable, commercial handsets from eight leading handset vendors, the demonstration showed the potential of new services that fully exploit the capabilities of 3G.
http://www.ericsson.com/press/20040220-154042.html

MOBILE PLATFORM LICENSING IN FULL SWING

Ericsson Mobile Platforms' activities in the last quarter included licensing its GPRS platforms to three new partners. Sharp will license Ericsson's 3G mobile platform for the company's first WCDMA and Triband-GSM compatible handset with a mega pixel camera, which is targeted at the Japanese market (http://www.ericsson.com/press/20040224-080116.html). Amoi Electronics Company Ltd (Amoi), a premier handset brand in China, selected Ericsson as 2.5G platform supplier for its new GPRS tri-band handset DA6 (http://www.ericsson.com/press/20040408-080113.html). One of the world's fastest growing ODEs (original design engineers), Bellwave, will base its next-generation GSM/GPRS products on Ericsson's G200 platform. The licence agreement is the first with Bellwave, and includes an option to license both Ericsson's EDGE and the dual-mode GPRS/WCDMA mobile platforms (http://www.ericsson.com/press/20040318-073119.html).

NEC AND ERICSSON SIGN BLUETOOTH AGREEMENT

NEC Corporation and Ericsson Technology Licensing have signed a licence agreement for Ericsson's Bluetooth software. The agreement covers the Ericsson Bluetooth 1.1 stack, with functionality including headset and dial-up support, and the new Bluetooth 1.2 stack which supports additional features such as audio streaming and Java APIs. NEC has already incorporated the 1.1 technology in its new 616 3G mobile phone.
http://www.ericsson.com/press/20040323-073113.html

Corporate News and Information

ERICSSON EARNINGS REPORTS FOR THE QUARTER ENDING 31 MARCH 2004

The results and additional information can be found at http://www.ericsson.com/investors/3month04.shtml. For Sony Ericsson's results please go to http://www.ericsson.com/press/20040419-094349.html.

PRESENTATION BY CEO CARL-HENRIC SVANBERG AT THE AGM

For an overview of Ericsson's progress in 2004 and future direction, please see Carl-Henric Svanberg's presentation to shareholders at Ericsson's Annual General Meeting in April 2004.
http://www.ericsson.com/press/chs_speech_agm_eng.shtml

UPCOMING EVENTS

Ericsson is participating in the following events:

ITU Telecom Africa May 4-8, 2004, in Cairo, Egypt

http://www.itu.int/AFRICA2004/

Ericsson will take part in a panel discussion about "Creating successful business models" on Wednesday, May 5, between 2.30-4.00 p.m. The discussion will bring together a range of companies from different sectors to discuss the development of successful business models in the African market.

Speaker: Sanay Kaul, Business Advisor, Ericsson South Africa

TeleManagement World, May 17-20, in Nice, France

http://www.tmforum.org

Ericsson speakers: Johan Josefsson, General Manager, Telecom and Solution Management, Systems Integration and Dag Åberg, Director, Product Marketing, Systems Integration

Ericsson Spring Capital Markets Day, May 4, 2004, in Stockholm, Sweden

Mobile Location Services, May 26-27, in Amsterdam, Netherlands

Official site

Key-note: 'How to succeed with MLS - lessons learned'
Speaker: Jonas Nordström, Sales Director, Location Based Services, Ericsson

CommunicAsia 2004, June 15-18, in Singapore

http://www.communicasia.com/

CONTACTS & INFORMATION

If you would like further information about any of the stories above or would like to arrange a background briefing, please contact Eva Sparr (eva.sparr@ericsson.com), Michelle French (michelle.french@ericsson.com) for North America, or Pia Långström (pia.langstrom@ericsson.com) for Europe and other locations.

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