Ericsson Worldwide

The concept of TV as a push broadcast medium is changing fast. Trends towards greater individualization and interactivity are changing the role of the audience from a passive viewer to an integral part of programming. This shift will change not only what we watch and when; but also how we watch TV. Telecom technology is behind most of these changes and it has only just begun.

TV in the mobile is already happening with unicast as the enabling technology for multimedia streaming over 2 and 3G mobile networks. Operators are already introducing mobile TV services in the form of live broadcasted and on-demand TV shows for mobile screens. Wall street Journal recently estimated that by 2009, "mobile broadcast networks will have 51 million subscribers generating revenues of $6.6 billion (WSJ: Feb 14, 2005)”.

Greater broadband access, combined with the convergence of fixed and mobile networks through deployment of IMS, IP Multi-media Subsystem, is creating possibilities for content developers, broadcasting corporations and operators.

Mobile TV technology paths

Looking back at the emergence of mobility, regional choices were made when choosing access technologies. This picture is blurring today, but in general the US went for CDMA, Europe stayed firmly with the GSM-track when evolving to 3G while it varies between countries in Asia Pacific. This history of access technologies affects the enabling broadband technologies that make mobile TV possible. Voice went mobile and now broadband is going mobile. Two main technologies will be used to distribute TV: MBMS (Multimedia Broadcast and Multicast Service), and DVB-H (Digital Video Broadcast for Handhelds). The choice of technology will depend on whether the operator chooses to broadcast using the cellular or digital TV spectrum, or a combination of both, and possible geographical region.

In the US market, Qualcomm’s system for mobile multimedia multicasting technology is a multimedia solution that is built for the US/CDMA market. It is a solution that seamlessly interfaces with both CDMA2000 and WCDMA. However, this solution will have limited success outside the US, mainly due to lack of spectrum but also from fierce competition with DVB-H.

In Europe and Asia Pacific, it is expected that MBMS will enjoy economies of scale as a global standard for TV services using the cellular spectrum. However, for broadcast using the digital TV spectrum, DVB-H is suitable as a complementary technology.

DVB-H is designed specifically for the broadcasting of TV-like content and data to mobile phones, PDAs etc. DVB-H is based closely on DVB-T, the standard for broadcast digital TV in most of Europe. The separate DVB-H standard tackles the power consumption, screen-size and mobility issues of mobile devices. DVB-H will enable a larger number of TV-channels to be transmitted simultaneously, typically 30-40 channels per 8 MHz carrier.

DVB-H is designed specifically for the broadcasting of TV-like content and data to mobile phones, PDAs etc. DVB-H is based closely on DVB-T, the standard for broadcast digital TV in most of Europe. The separate DVB-H standard is necessary to address the unique requirements of mobile devices in terms of power consumption, screen-size and mobility. DVB-H will enable a larger number of TV-channels to be transmitted simultaneously, typically 30-40 channels per 8 MHz carrier. Additional DVB-H network hardware will be needed for indoor coverage to provide a network as dense as 3G. This is a requirement as the total DVB-H network capacity must be shared between all interested service providers.

MBMS integrates into existing infrastructure with no new hardware requirements in the radio or core network. MBMS will enable a limited number of mobile TV channels to be simultaneously transmitted from a 3G base station. Typically, four “Mobile TV” channels could be broadcasted simultaneously when using part (30 %) of the cell power from a WCDMA base station for MBMS. If a complete WCDMA carrier (5 MHz) would be used, the number of channels could be increased to typically ten “Mobile TV” channels.

MBMS is a 3GPP standard defining protocols, transport bearers and codec to perform broadcast and multicast in GSM and WCDMA systems. BCMCS, Broadcast and Multicast Service is a similar service specified for CDMA2000 and standardized through 3GPP2. The main benefit compared to unicast streaming is the efficient network resource utilization. The savings in network resources already start if there is more than one user in the radio cell consuming mobile TV. In addition to this, the network is responsible for the resource allocation along the transport path, which is an advantage in comparison to unicast streaming.

The broadcast and multicast session starts with the system allocating resources towards the users. In broadcast mode users simply tune in to available channels provided by the system towards the mobile phone. In multicast mode the tune in process is made in advance of the event and the user is notified when the event is about to occur. MBMS is well suited for delivering Mobile TV to the mass market, in densely populated areas or in the countryside.

However, the main benefit of both MBMS and DVB-H is that they solve the problems of bandwidth and quality demanded by multimedia streaming, while enjoying global economies of scale.

Right now, operators are embracing IMS-based applications and services. Mobile TV represents a golden opportunity for operators to move into a new segment. Mobile TV opens up a major new distribution channel for entertainment networks and satellite operators that complements their current offering. This enables them to reach their audiences when they are on the go. Plus, it introduces a whole new group of consumers for the operators and new customers to vendors like Ericsson.

Ericsson’s mobile TV offering

Today, Ericsson provides mobile solutions capable of handling 3G Unicast delivery of Mobile TV. The end-to-end solution includes Ericsson’s Multimedia Streaming solution based on Ericsson Content Delivery system (ECDS) and the Video Gateway (VIG), which forms the core for both packet and circuit switched bearers. To enhance the consumer experience and increase convenience, Ericsson Mobility World provides TV content partnerships, Ericsson Mobile Platforms provides device platforms capable of handling multimedia streaming and mobile TV and Sony Ericsson provides complementary mobile devices for the consumer.

Ericsson is already developing Mobile TV products based on MBMS and DVB-H. The MBMS based mobile TV is as a complete end-to-end offering, including everything from mobile handsets and platforms, radio access, core and service network. The mobile TV products based on DVB-H are developed with Sony Ericsson and compatible chipsets from Ericsson Mobile Platforms. In addition to this, Ericsson’s service layer solution will support MBMS, BCMCS and DVB-H. Also, by the end of 2006, MBMS multimedia streaming enablers will be available which will further improve quality and capabilities to enhance the consumer experience and take entertainment to a new level. This development path provides not only the best quality solution for the consumer but also the most flexible and secure alternative for mobile TV vendors.

Mass-market up-take will come as a result of technology maturity and increased consumer convenience and user friendliness. Ericsson Consumer Lab studies have shown that the willingness to pay for mobile TV channels and services is in the same range as what people are prepared to pay for their daily newspaper. Mobile operators are already launching mobile TV utilizing existing 3G based mobile TV services. A true mass-market emerges when both network capacity for broadcast and handsets using broadcast the technologies MBMS, BCMCS and DVB-H are available. Ericsson is in a unique position to address these aspects though our true end-to-end capabilities – from the core all the way into the hand of the consumer.

Mobile TV telebriefing: Mark May 25,, 2005, at 17.00 CET in your calendars for Ericsson’s industry analyst telebriefing on Mobile TV. Invitation will be distributed at a later stage. For further information, please contact industry.analysts@ericsson.com or visit www.ericsson.com/ericsson/industryanalysts

Telecoms

MOBILE COMMUNICATIONS - 2G & 3G CONTRACTS

STRENGTHENED POSITION IN TAIWAN
WCDMA operator VIBO Telecom selected Ericsson to supply a turnkey solution (press release). The deal includes core network equipment, both circuit-switching and packet-data, transport network and Systems Integrations, as well as a full portfolio of services such as training, network design, network rollout and technical support to support VIBO's planned 3G launch.

2G & 3G INTEGRATION AGREEMENT STRENGTHENS SCANDINAVIAN POSITION
In the past quarter Ericsson has maintained its position as the leading supplier of mobile network solutions. In Denmark, the TeliaSonera and Tele2 joint venture Svenska UMTS-Nät awarded new 3G contract to Ericsson (press release). The three-year frame agreement will integrate the 2 and 3G networks as well as delivery of the core and radio network.

COVERAGE IS ALL AT SEA
By deploying Ericsson GSM technology, Maritime Communications Partner (MCP), MCP will be able to offer mobile coverage onboard cruise ships and ferries all over the world (press release). The ships will have on board radio base stations secured through a satellite link to the core network on shore. This will enable fax, internet and data services for onboard marketing, promotions and information as well as voice services.

US DEPARTMENT DEPLOYS WCDMA
U.S. Department of Defense's will deploy Ericsson technology for a next-generation narrowband satellite communications system that will provide simultaneous voice, video and data communication for U.S. Army, Air Force, Navy and Marine Corps troops (press release). Ericsson signed an agreement with General Dynamics to supply WCDMA wireless equipment and telecom services to and build the network. The multi-year agreement could be worth as much as USD 200 million to Ericsson.

EDGE TO MERGE TWO NETWORKS
Avea selected Ericsson as the sole supplier of core network and upgrade the existing radio access network with EDGE technology (press release). The contract will upgrade two of Avea’s GSM networks in Turkey and enable advanced data services over the existing GSM infrastructure.

CDMA CONTRACTS
In CDMA news, Ericsson secured a string of contracts including a sole supplier agreement with Suntel for CDMA 1Xnetwork deployment in Sri Lanka (press release); and a CDMA2000 1X deployment contract India's Shyam Telecom (press release) in the Rajasthan circle.

EXPANSION IN AFRICA
Ericsson also secured a USD 48.5 million GSM Expander solution with the Ethiopian Telecommunications Corporation (press release) to provide rural coverage in Ethiopia

CDMA2000 450 MHz OFFERING FOR HIGH GROWTH MARKETS
Ericsson has signed frame agreements to supply and test CDMA2000 450 MHz terminals with AnyDATA, Axesstel (AMEX:AFT) and Ubiquam (press release). The frame agreements enable Ericsson to supply CDMA2000 450 MHz terminals as part of an end-to-end product and service offering. In addition, the companies have agreed to cooperate in the further development, testing and customization of CDMA2000 products as particular supply opportunities arise. Testing and features will include fixed wireless capability for CDMA2000 1X and 1xEV-DO, PTT capability, and R-UIM capability, among others.

BROADBAND AND MULTI-SERVICE NETWORKS

AN ADSL2+ FIRST
Colombian fixed operator Telebucaramanga will implement the first in ADSL2+ service in the Northern Latin America market region. Ericsson was selected to delivery the breakthrough broadband access contract with (press release) which comprises of an end-to end broadband access solution, comprising HomeGateways, IP-DSLAMs, Metro Network and associated management systems and services.

TELIASONERA SOLE-SUPPLIER ETHERNET DSL ACCESS CONTRACT
TeliaSonera in Denmark has selected Ericsson as the sole supplier to deliver new broadband capabilities to the TeliaSonera (press release). Under the sole supplier contract, Ericsson will provide its Ethernet DSL Access solution enabling high-speed Internet access for simultaneous voice and video/TV services for residential and business users.

FASTER BROADBAND SERVICES IN PHILIPPINES
Bayan Telecommunications, Inc. (BayanTel) has boosted its wireline business with the deployment of Ericsson's Ethernet DSL Access solution to Metro Manila and major provincial cities (press release). The scalability of the DSLAM solution and the Ethernet DSL Access design allow triple play services (voice, data, and video) to home and office environments.

Telecom Services

Since 2002 Ericsson’s Managed Service Team has managed over 44 service contracts to optimize operations capacity and hosting facilities.

ON-DEMAND CAPACITY WITH MANAGAED CAPACITY SOLUTIONS

During the quarter Ericsson launched its managed capacity solution to reduce operators' total cost of ownership for networks (press release). By combining its strengths in infrastructure and managed services,. This means that under the managed services agreement Ericsson can deliver and manages network capacity when and where operators need it. Operators and enterprises will continuously receive telecom infrastructure and services based on operators' capacity and coverage requirements. By partnering with Ericsson, operators will reduce over- and under-capacity, and are able to buy and pay for expansion of coverage and capacity according to market demand.

SIX-YEAR MANAGED SERVICES CONTRACT

ICE in Costa Rica signed a GSM/GPRS infrastructure contract which will also include managed services (press release). The six year deal, worth USD 130 m, is the largest managed services deal announced in the Central America region. Ericsson will deploy, operate, optimize and maintain a national GSM/GPRS 1800 MHz network throughout Costa Rica.

MAXING-OUT ON MANAGED SERVICES

Maxis Communications, the largest mobile operator in Malaysia, recently chose Ericsson Managed Services to operate its 3G network (press release). Ericsson will manage the network for a period of 18 months after which the operation of the network will be transferred to Maxis.

TCC SPEEDS UP WITH ERICSSON SYSTEM INTEGRATION

Ericsson and TCC (Taiwan Cellular Corporation) signed a contract for systems integration and an end-to-end service delivery solution (press release), and includes business consulting service. The solution, based on Ericsson Service Delivery Platform, will enable TCC to create and introduce attractive consumer services in a fast and cost efficient way. The platform provides high-level interfaces like Web Services and Parlay to reduce the complexity of application development and deployment in a secure and controlled way.

LIFECYCLE SUPPORT FOR SERVICES

To gain competitive edge in a rapidly changing and evolving market, operators will need to launch individually tailored services to specific consumer segments with speed and efficiency. A clear understanding of consumer needs and expectations is a prerequisite to attract the mass-market. The operator needs to acquire consumer insight and ensure a service delivery environment in the network. Supporting the complete life cycle of launched consumer services is crucial, including – from initiation to withdrawal tracking usage, tuning of the service performance, managing partners, and consumer marketing and education of how to use the services and enjoy the benefits.

Ericsson has taken a partnership approach to this issue in an effort to provide faster service launch and bring attractive consumer services to the mass market. Services beyond voice are increasingly in demand by consumers – and even though it is still early days the mass market is there are beginning to take off.

One such partnership includes the recently announced five-year systems integration and service delivery solution with Telstra in Australia (press release). Through this partnership Telstra can develop their end-to-end service delivery solution utilize Ericsson’s extensive consumer insight in “crossing the chasm” towards mass market. This will enable Telstra to leverage its entire media, broadband and telecoms portfolio to deliver content, applications and services.

CONTRACTS IN MANAGED SERVICES

Bharti extended its managed services and GSM/GPRS infrastructure agreement (press release) to include 2 new regions, bring the total number of regions in the Indian sub-continent covered by Ericsson to 15.

Ericsson delivers complete messaging solution to Scandinavian 3G mobile operator 3 (press release), With this messaging solution 3 will be able to offer messaging services such as SMS, MMS and video mail and the contract is the first of its kind for Ericsson. Ericsson, will assume overall responsibility for the integrating, hosting and management of the solution.

FIVE-YEAR END2END SERVICE DELIVERY DOWN UNDER

Telstra signed a five-year systems integration and service delivery solution deal with Telstra (press release) Ericsson will also provide advanced consulting services to support Telstra in defining customer service streams and creating targeted offerings to capture new data revenues. This deal includes the provision of system integration of the Ericsson Service Delivery Platform (ESDP), by integrating it into Telstra's environment and support services for post launch operations.

SMARTONE UPS ITS SERVICE GUARANTEE

SmarTone in Hong Kong selected Ericsson as the systems integrator of an end-to-end network management solution (press release). The solution enables SmarTone to guarantee and demonstrate in real-time, committed levels of quality of service (QoS) in its GPRS network. This is significant in order to generate new revenue streams as well as to retain existing clients.

Evolution to all-IP services

ERICSSON AND SIEMENS INTEROPERABILITY IN PUSH TO TALK

Ericsson and Siemens Communications have successfully completed interoperability tests between Siemens push to talk handsets and Ericsson infrastructure (IMS system including push to talk server) (press release). This major step will significantly expand the customer base for operators planning to offer standard-based push to talk and will give consumers a simple and seamless push to talk experience. In addition it proves the two global mobile communications suppliers' commitment to open standards.

MALTACOM IMPLEMENTS SOFTSWITCH FOR NETWORK UPGRADE TO IP

Maltacom has contracted Ericsson for a total upgrade the core network from circuit-switched technology, based on AXE-10 exchanges, to an IP-based Softswitch solution (press release). Ericsson will also provide the related implementation and support services. The Telephony Softswitch solution will cover the complete fixed line telephony network including local, transit and international network layers. The solution will reuse Maltacom's existing AXE-10 access network elements, hence reducing the required investments for the network upgrade.

IPX SIMPLIFIES MOBILE CONTENT DELIVERY

Covering more than 360 million mobile subscribers around the world, the Ericsson Internet Payment eXchange (IPX) solution simplifies the business model between content providers, mobile operators and consumers (press release). IPX, allows consumers to purchase content from different content providers and pay using their mobile phone and the existing charging relation with the mobile operator. The white label service focuses on mobile premium and non-premium connectivity via SMS, MMS, Web and WAP. It requires no new relationship, extra hardware or complicated registration procedures – this means that content providers using IPX can gain charging access to consumers connected to IPX operators world-wide.

The Ericsson Internet Payment eXchange (IPX) solution for content payment has also attracted a strategic sale with Modern Times Group's (MTG) mobile content service, ZooMobile (press release). MTG is the largest free-to-air and pay-TV broadcaster in the Nordic and Baltic regions.

In the first quarter of 2005 real-time charging services utilizing Ericsson's mediation and charging solution lead the way with a series of .new contracts and upgrades including:

2 new Charging System contracts in Africa doing change out of legacy prepaid systems from Alcatel and Intervoice.
Charging System upgrade contacts from existing customer base to secure new competitive charging capabilities.
New Multi Mediation contacts, including 5 contracts in Europe and Americas for online mediation

Enterprise update

GAINING CONTROLWITH MOBILE DEVICE MANAGEMENT

Ever lost a phone with sensitive material on it? A new Mobile Device Management tool enables operators and enterprises. This new product is giving control back to operators. The Ericsson Mobile Device Management gives operators and enterprises the tools to take control of mobile device costs, administration and security (press release) It allows them to remotely administer handsets, even shut down and wipe out all the content on a stolen or lost mobile. This brings subscribers increased security and convenience, while opening up fresh revenue-generating opportunities for operators. The device management tools allow easy deployment of applications as well as, support, upgrade and protection of mobile devices and applications. It will be offered as an integral part of Ericsson's Mobile Enterprise solutions for operators as well as in solutions for larger enterprises.

SOLIDUS eCARE TAKES CARE OF BUSINESS

In an effort to shorten response time, ease mobility and enable competence-based call management, Folksam, one of Sweden's largest insurance companies, is introducing a new customer support system based on Ericsson Solidus eCare (press release). Folksam Contact Center Manager Per Ardehed says the implementation is a logical step that will provide the company with new opportunities to further develop its operations, in particular customer service and claims settlements: "This solution will contribute to our external efficiency by enhancing customer accessibility and cutting response times, and internally by making better and more flexible use of our entire organization." For more information, read the complete

Corporate News and Information

ERICSSON REPORTS SOLID Q1 RESULTS

A solid result was returned by Ericsson for the first quarter 2005. Net sales of SEK 31.5 (28.1) billion and a net income SEK 4.6 (2.6) billion in the quarter 1, were a result of steady increases in most markets. Mobile Networks sales grew by 11% year-on-year. This steady increase is due in part to the increasing subscriber figures and increasing investment in telecom infrastructure.

SONY ERICSSON REPORTS Q1 RESULTS

In line with expectation, market growth was moderate during the quarter. As a result Sony Ericsson returned a moderate performance in the first quarter of 2005. Units shipped in the quarter increased by 7% (9.4 million handsets), in comparison to the same time last year. However sales represented a year on year decrease of 4% (press release).

eMOBILITY PLATFORM LAUNCHED.

15 telecommunications companies launched the eMobility Technology Platform for mobile and wireless communications (press release). The eMobility Platform aims to enhance cooperation amongst industry players, including the research community and public authorities, and most notably the European Commission in an effort to drive future technology development in mobile and wireless communications in the way that best serves Europe's citizens and the European economy.

GSM ASSOCIATION RECOGNIZES HUMANITARIAN WORK

Recently at Cannes, the GSM Association honored Ericsson’s emergency relief program called Ericsson Response (press release). The award "Best Use of Mobile in Emergency Situations" was awarded based on the disaster relief operation following the major earthquake in Bam, Iran, in December 2003.

HITTING THE BIG SURF

Ericsson will be the only Swedish entrant in the Volvo Ocean Race, which will begin on November 5th (press release). The race gives Ericsson the chance to reach its customers around the world, as well as showcasing how its solutions can help them develop relationships with enterprises and consumers.

UPCOMING EVENTS

INDUSTRY EVENTS

17-19 May 2005
IMS 2005 Asia, Terrapin – Singapore

Tuesday May 17, 9:00 a.m.
Topic: Chairman's welcome address
Speaker: Tomas Ageskog, Vice President, Mobile Internet Solutions, Ericsson Singapore

Tuesday May 17, 9:40 a.m.
Topic: The business case for implementing IMS
Speaker: Oscar Gestblom, Director IMS Marketing Program, Ericsson Sweden

Tuesday May 17, 2:00p.m. Panel discussion: The search for success services - Is there such a thing as a killer application?
Panel Member: Oscar Gestblom, Director IMS Marketing Program, Ericsson Sweden

Tuesday May 17, 4:10 p.m.
Topic: IMS based Combinational Services for the Asia Pacific Region Speaker: Giles Vincent, regional Account Director, Ericsson, Singapore

Wednesday, May 18, 10:10 a.m.
Topic: Evolving your service delivery platform to an all IP network
Speaker: Marcus Lannebro, Director Strategic Marketing, Ericsson Sweden

Wednesday, May 18, 4:10 p.m. Interactive Round Table Panel Discussion: - Maximizing revenue from our IP-based services
Roundtable leader: Tomas Ageskog, Vice President, Mobile Internet Solutions, Ericsson Singapore

23-26 May, 2005
VON Europe – Stockholm, Sweden
Tuesday, May 24, 11:40a.m.
Topic: Industry Perspective
Speaker: Karl Thedeén, VP Product Area, Wireline,

Tuesday, May 24, 4:30 p.m.
Topic: General Session: Broadband in Europe Panel Member: Peter Linder, Technical Director Wireline Networks, Ericsson

Thursday, May26, 11:45a.m.
Keynote: IMS as an Enabler for Fixed and Mobile Convergence
Speaker: Mikael Halen, Director of Marketing, Business Unit Systems,
Website: www.voneurope.com

IIR Evolving SDP's 2005 Conference - Lisbon, Portugal
Wednesday, May 25, 9:40 a.m.
Topic: Understanding How and Why to Introduce IMS into Your SDP
Speaker: Patrik Hedlund, Strategic Marketing Manager

6-9 June 2005
Supercomm Chicago, USA
Wednesday, June 08, 9:45 am
Topic: Delivering Carrier-Class Ethernet Solutions
Speaker: Peter Linder, Technical Director Wireline Networks, Ericsson

14-17 June 2005
CommunicAsia - Singapore
Wednesday, June 15, 10.45.a.m.
Industry Keynote Address: Mobile Broadband and its Potential
Speaker: Carl-Henric Svanberg, President & CEO, Ericsson

Thursday June 16, 10.45 a.m.
Industry Keynote Address: Will 3G Be a Cornerstone of Enterprise Mobility?
Speaker: Torbjörn Nilsson, Senior Vice President, Strategy and Product Management, Ericsson
Website: www.communicasia.com

ERICSSON EVENTS
Capital Markets Day Stockholm, Sweden May 10, 2005
Capital Markets Day Asia Sept. 2005
Capital Markets Day US Nov. 10 2005

More details here

Latest White Papers

The latest white papers released from Ericsson examine the business trends and revenue drivers that are making telecom companies more profitable. For example the Softswitch in Mobile Networks looks at how softswitching in the core network can reduce capex by 50%. The IN-building whitepaper also discusses how expanding quality networks indoors can also increase traffic revenues and create new revenue opportunities with Wireless networks for IN-Building environments. The last whitepaper (Evolution towards converged services and networks, rev B), examines the drivers and technologies that enable true convergence, and what operators need to consider in order to fully capitalize on this opportunity.

TELEBRIEFINGS
PRELIMINARY TELEBRIEFING CALENDAR FOR 2005
May 25 (Wednesday): Mobile TV – MBMS
July 6 (Wednesday): Broadband Connected Home - To be confirmed
August 17 (Wednesday): Topic to be confirmed
September 28 (Wednesday): Topic to be confirmed
November 9 (Wednesday): Topic to be confirmed
December 14 (Wednesday): Topic to be confirmed

To sign up for the industry analyst telebriefings and technology updates, please send an e-mail to: industry.analysts@ericsson.com or refer to our website.

CONTACTS & FURTHER INFORMATION
The next newsletter will be issued following the quarterly report on July 21, 2005. Further details regarding the quarterly reports

If you would like further information about any of the stories above or would like to arrange a briefing, please send an e-mail to industry.analysts@ericsson.com or contact Eva Sparr, Rob Elston for North America, or Pia Långström for Europe, Middle East, & Asia Pacific regions.

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