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Overview
Top stories
Ericsson reports lower income on higher sales
Ericsson reported net sales of SEK44.2 billion for the first quarter of 2008, 5 percent higher than in the same quarter last year. Net income for the quarter was SEK2.6 billion, down 55 percent from a year earlier (Press release).
Sony Ericsson shipments higher, sales income lower
Sony Ericsson reported unit shipments of 22.3 million for the first quarter of 2008, a 2 percent increase over same period last year. However, sales for the quarter were EUR2,702 million, 8 percent lower than a year ago, due to slowing market growth in mid- to high-end phones in markets where Sony Ericsson has a strong presence (Press release).
Ericsson signs USD1.44 billion GSM expansion deals in China
Ericsson signed GSM expansion framework agreements with China's two largest mobile operators, China Mobile and China Unicom, valued at USD1.3 billion and USD140 million respectively. (Press release).
Viewpoint – Traffic control the right way
By Melih Tufan, Head of Product Line Packet Core, Ericsson
With the growing popularity of broadband – both fixed and mobile – there is a parallel increase in peer-to-peer applications. At the same time, operators are being pushed to open their networks to other content and service providers. In this environment, some form of traffic control is necessary to preserve service quality and protect revenue – especially when it comes to subscribers who are paying for premium, real-time services. The question is this: What is the best approach for operators to strike a balance between customer satisfaction, revenue protection and regulatory requirements?
For some people, any attempt to identify, monitor and control IP traffic in public networks is anathema. It goes against the basic principles of the Internet and specifically of ‘net neutrality’, they say. Some are even calling for regulations to prevent any selective management of Internet traffic, especially in the USA, where the Federal Communications Commission (FCC) is still grappling with the issue.
However, the rise of peer-to-peer applications and the volume of file-sharing traffic, especially music and video, means operators will need to act to prevent online congestion. A six-month Ericsson study of a Western European WCDMA network in 2007 found that 69 percent of the data traffic being carried was peer-to-peer, with the vast majority arising from file-sharing applications.
Allocating sufficient resources to legitimate premium services – which are also increasingly bandwidth-hungry and delay-sensitive – is a major challenge for operators. A key problem with peer-to-peer traffic is that it is symmetric – demanding as much bandwidth in the uplink as in the downlink – unlike the vast majority of broadband access networks. Another issue is that file-sharing applications tend to run in the background, around the clock – disrupting the traditional load balancing between working hours and ‘home time.’ Revenue is also lost or displaced by the effect of peer-to-peer traffic on service quality and potentially higher interconnection fees as traffic traverses service area boundaries.
Whether or not ‘net neutrality’ regulations are introduced, operators will need to get a clear picture of the volume and nature of the traffic streams in their networks if service levels – and revenues – are to be maintained.
For operators, simply investing more money in additional capacity is not the solution. This would likely attract even more peer-to-peer traffic while leaving unaddressed the issue of all traffic – paid-for or otherwise – being treated the same way. What operators need is a way to ensure optimum use of their network resources, to ensure quality of service and security for paid-for services, and to develop targeted business opportunities.
Packet inspection alone – whether shallow (OSI Layers 1 to 4) or deep (Layers 4 to 7 and payload) – cannot address the issue of peer-to-peer traffic. The protocols of many peer-to-peer applications are designed to avoid detection, which requires a new approach involving heuristic analysis.
Rather than inspect individual packets, the size, bit patterns and frequency of packets in different sessions (IP flows) can be studied. These statistics can then be combined with information about network diameter (the average shortest distance between pairs of nodes, measured in number of hops) and hosts acting as servers and clients.
This combination of deep packet inspection and heuristic analysis provides operators with an accurate picture of the type and volume of Internet traffic at an application level. Operators gain valuable insight that will help them review current policies – on such issues at fair usage -- which they can then communicate clearly to their customers. Operators also get a better view of subscriber behavior and preferences to inform service planning, marketing and pricing. It becomes easier to spot new opportunities for marketing and partnerships with media and content providers.
This level of analysis would enable operators to prioritize premium service traffic over best-effort traffic, should they wish, in a highly targeted way. Furthermore, it would help them identify and act upon traffic that represents a security risk, for example through viruses embedded in sought-after material spread unwittingly by members of peer-to-peer networks.
Solutions for deep packet inspection and heuristic analysis can be implemented in the core network or the access edge network. The functionality could either be integrated with current network elements or based on dedicated nodes, or a hybrid combination of these. Flexibility is vital to meeting fast-changing needs, and it should be possible to evolve any solution to full-scale policy management architecture. In the case of hybrid solutions, a common software platform is critical to ensuring smooth migration.
Whether or not regulations are implemented to ensure uniform access to the Internet, operators will benefit from the insight deep packet inspection and heuristic analysis provides into the traffic their networks carry.
Ericsson has published a white paper on traffic inspection, which you can view and download here. If you would like to arrange a briefing on this topic, please contact industry.analysts@ericsson.com.
Mobile networks
Ericsson builds on HSPA lead
Ericsson now powers 90 of the world’s 185 commercially launched high-speed packet access (HSPA) networks and is working on many ongoing deployments. HSPA is available as an upgrade to about 85 percent of the world’s existing mobile networks.
During the quarter, Ericsson was selected as HSPA network provider in a number of important markets:
- Brazil’s largest GSM operator TIM Brasil selected Ericsson as sole supplier of a WCDMA/HSPA network (Press release)
- Hong Kong’s SmarTone-Vodafone signed a three-year agreement with Ericsson as the sole supplier of a HSPA-enabled radio access network including multimedia broadcast multicast services (MBMS) to enable broadcast mobile TV services (Press release)
- Up to 95 percent of the population of Taiwan will have access to the fastest mobile broadband speeds available after a deal between Ericsson and Far EasTone that will give the company the highest HSPA penetration in Taiwan (Press release)
- Vodafone Australia appointed Ericsson as primary hardware and software vendor to support its national HSPA roll-out, which is being fast-tracked for completion in December 2008 (Press release)
- Leading Russian operator VimpelCom and Ericsson signed a five-year agreement for the supply and implementation of a WCDMA/HSPA network (Press release)
- Egyptian mobile operator Etisalat Misr chose Ericsson to expand its GSM/WCDMA/HSPA network (Press release)
- Paraguayan operator Personal selected Ericsson to supply a nationwide WCDMA/HSPA network (Press release).
Mobile industry leaders commit to LTE licensing framework
Ericsson has joined forces with Alcatel-Lucent, NEC, NextWave Wireless, Nokia, Nokia Siemens Networks and Sony Ericsson to commit to a framework for establishing more transparent maximum costs for licensing intellectual property rights (IPR) for 3GPP Long Term Evolution and Service Architecture Evolution (LTE/SAE) standards (Press release).
Telstra deploys world’s first blade-based mobile softswitch
Ericsson and Telstra are deploying the world’s mobile softswitch solution based on blade technology, which will simplify the operator’s GSM–WCDMA mobile network and reduce energy use by up to 60 percent per subscriber (Press release).
Celcom modernizes with single GSM–WCDMA core
Celcom has become the first operator in Malaysia to establish a single core network platform for both GSM and WCDMA, with the deployment of Ericsson’s mobile softswitch solution (Press release).
Ericsson demonstrates HSPA Evolution at 42Mbps
Ericsson demonstrated the world’s first end-to-end HSPA Evolution technology with speeds up to 42 Mbps at CTIA Wireless 2008 in Las Vegas, April 1–3 (Press release).
Warid Telecom expands and upgrades in Pakistan
Leading Pakistani operator Warid Telecom has chosen Ericsson to expand and upgrade its GSM/GPRS network in a major step in the evolution to an all-IP network (Press release).
WIND Hellas completes upgrade
Greek telecom operator WIND Hellas has successfully upgraded and expanded its GSM/WCDMA core network, including a swap to Ericsson’s WCDMA/GSM common core network solution (Press release).
E-Plus chooses Ericsson for mobile broadband expansion
German mobile operator E-Plus has chosen Ericsson to expand and upgrade its WCDMA network, including its microwave transmission network (Press release).
Ericsson to supply 3G network to Telcel in Mexico
In Mexico, Telcel, has selected Ericsson to provide a 3G network including base stations, network controllers and extensive software functionality, to upgrade part of an existing GSM/GPRS/EDGE network (Press release).
Celtel Uganda reduces energy consumption with hybrid energy solution
Celtel Uganda has chosen Ericsson’s new hybrid energy solution to significantly reduce energy consumption in mobile networks outside the electricity grid (Press release).
NTT DoCoMo names Ericsson as Super 3G/LTE vendor
Japanese operator NTT DoCoMo has selected Ericsson for its LTE base station development project (Press release).
Study shows reduced carbon footprint in Telstra's Next G network
A study of Australian operator Telstra's Next G network, which was supplied and installed by Ericsson, shows that business users of the new mobile broadband service were able to cut carbon emissions (Press release) as well as make significant productivity gains (Press release).
Groundbreaking multi-standard radio base stations
Ericsson unveiled its RBS 6000 next-generation radio base stations at Mobile World Congress 2008 in Barcelona. The energy-efficient site solution is the smallest on the market and supports GSM/EDGE, WCDMA/HSPA and LTE in a single package (Press release).
World’s first end-to-end LTE call demonstrated
Ericsson demonstrated the world’s first end-to-end phone call enabled by LTE/SAE, employing handheld mobile devices, at Mobile World Congress in Barcelona (Press release).
ArmenTel chooses Ericsson IMS
ArmenTel, VimpelCom's operator in Armenia, has selected Ericsson as supplier and systems integrator of an IP Multimedia Subsystem (IMS) solution that will deliver a next-generation network supporting integrated fixed and mobile services (Press release).
Singapore’s M1 enhances mobile backbone capacity
Ericsson has won a contract to implement microwave and optical transmission solutions for M1, one of Singapore's leading mobile communications providers (Press release).
Multimedia services
Turnkey IPTV solution for OTE Greece
Ericsson has been selected as end-to-end IPTV systems integrator, solution provider and business consultant for Hellenic Telecommunication Organization (OTE SA) (Press release).
Ericsson IMS at 2008 Beijing Olympics
Beijing Netcom, a branch of China Netcom, has chosen Ericsson to provide a Command Supporting System for the 2008 Olympic Games based on Ericsson’s IMS solution (Press release).
New multimedia interface for mobiles
Ericsson has introduced the Multimedia Communication Suite (MCS), an intuitive user interface that presents popular services already available on the Internet in a new and enhanced mobile way (Press release).
CNN and Ericsson reveal Mobile TV research findings
A joint international mobile TV research study by CNN and Ericsson has found that mobile TV tops consumer wishlists for new handsets (Press release).
Ericsson and FIFA sign multimedia agreement
FIFA, the world governing body of football, will use Ericsson's content management and service delivery platforms to enable its broadcaster and telecom content licensees to offer mobile content (Press release).
Ericsson's IPTV solution chosen by Valtech
Valtech Communications Inc, a supplier of next-generation triple-play services in Canada, has chosen Ericsson's IPTV solution to provide new and value-added television services to its customers (Press release).
Mobile devices
World’s first commercial LTE platform for mobile devices
Ericsson has unveiled the M700, the world’s first commercially available LTE-capable platform, offering peak data downlink link rates of 100Mbps and uplink rates of up to 50Mbps (Press release).
Ericsson announces one-chip HSPA solution for open OS devices
Ericsson has announced the U380 mobile platform, an integrated and verified one-chip HSPA platform that supports all major open operating systems (Press release).
Groundbreaking multimedia mass-market device platform
Ericsson’s U500 mobile platform offers next-generation architecture with a triple processor and a powerful multimedia subsystem, enabling new multimedia functionality and advanced multi-tasking capabilities (Press release).
Built-in HSPA mobile broadband technology for notebook PCs
Ericsson and Lenovo, the world's third-largest PC maker, have aligned to provide mobile broadband modules based on HSPA (Press release).
Grameen CyberNet to deploy GPON for advanced broadband
Grameen CyberNet, a leading internet service provider in Bangladesh, has signed a contract for a fiber-to-the home (FTTH) network based on Ericsson’s Gigabit Passive Optical Network (GPON) solution to deliver advanced broadband services including games and video-on-demand (Press release).
mCell upgrades mobile packet backbone in Mozambique
Mozambican operator mCell has selected Ericsson as sole supplier for the expansion and upgrade of its Mobile Packet Backbone Network solution (Mobile-PBN) (Press release).
Telecom services
O2 UK signs Europe’s largest Napster Mobile hosting contract
UK mobile operator O2 has signed Europe’s largest hosting contract for Napster Mobile with Ericsson, enabling its customers to search, browse, preview and purchase full-length recordings from Napster’s catalogue of over 5 million tracks (Press release).
Saudi Arabia’s Mobily signs major managed services agreement
Saudi Arabian operator Mobily has selected Ericsson as managed services partner in the largest agreement of its kind in the Middle East (Press release).
Ericsson expands managed services range
Ericsson has announced an expansion of its managed services offering, adding three new services to the portfolio: Me-On-TV, Hosted Location-Based Services and Hosted Mobile Advertising (Press release).
Aircel in India first for consumer push e-mail
Ericsson signed its first contract for delivery of hosted consumer push e-mail service to leading Indian operator Aircel, part of the Maxis Communications group (Press release).
TDC Denmark signs largest Nordic full-scope managed services contract
Ericsson and Denmark’s largest operator TDC have signed the largest full-scope managed services contract in the Nordic region, which will see Ericsson manage, develop and modernize TDC’s entire mobile network (Press release).
First contract for Napster Mobile in Latin America
Chilean operator Entel PCS has signed an agreement with Ericsson to launch the first Napster Mobile service in Latin America (Press release).
Ericsson to divest its enterprise PBX solutions to Aastra Technologies
Ericsson is to divest its enterprise PBX solutions business to Aastra Technologies, under an agreement involving the transfer of approximately 630 employees (Press release).
Corporate news
2007 Corporate Responsibility Report published
Ericsson’s Corporate Responsibility Report for 2007 is now available. The report details Ericsson’s environmental, economic and social commitment and performance during 2007, highlighting how our core technology has been used both to maximize social and environmental benefit and minimize potential risk to our company and stakeholders.
Ericsson named ‘China Green Company’
Ericsson has been honored with the title ‘China Green Company’ by China Entrepreneur magazine, Daonong Enterprise Institute and Guanghua School of Management of Beijing University, in recognition of its continuous commitment to innovation in environmental protection in China (Press release).
‘Digital natives’ awarded in worldwide management competition
Students from Stanford Graduate School of Business won the third annual International Tech Strategy Business Case Competition ahead of eight international and seven other US teams. Ericsson sponsors the tough 24-hour case analysis in support of ‘digital natives’ – the generation that has grown up in the online digital world (Press release).
Ericsson, Zain and GSMA help to save lives on Lake Victoria
The 200,000 fishermen who work on Lake Victoria will soon be able to use mobile phones to call for help if they get into trouble on the world’s second-largest lake, where up to 5,000 people die each year from accidents and piracy. Zain and Ericsson are upgrading Celtel’s existing infrastructure and building an additional 21 radio sites to extend mobile coverage to up to 20 kilometers into the lake (Press release).
Ericsson mobile solutions to improve lives of women
In support of International Women’s Day 2008, Ericsson continued its commitment to women's health and to raising their socioeconomic status around the world with initiatives employing mobile telephony and high-speed mobile-broadband Internet access (Press release).
Latest white papers
Wireless networks for in-building environments
In-building solutions are becoming increasingly widespread, as user demand for ubiquitous coverage grows. As this white paper describes, they also provide mobile operators with an opportunity to offer improved services and increase traffic revenues (White paper).
Innovations in WCDMA
This paper describes the historical development of WCDMA – the radio access part of the UMTS 3G standard – and clarifies many misconceptions surrounding the technology and its relationship to IS-95 (White paper).
Traffic inspection for visibility, control and new business opportunities
Peer-to-peer applications can easily consume a disproportionate amount of bandwidth. Traffic control based on packet inspection and heuristic analysis is therefore indispensable. However, these features can also be used to introduce more profitable service plans and to form partnerships with third-party content providers, and this paper describes (White paper).
For the latest Ericsson white papers, please click here
The latest issue of Ericsson Business Review, Ericsson’s magazine on telecoms business strategies, takes a look at connectivity and its implications for business and society at large. To view the latest issue and to subscribe, please click here.
Events
Industry events
May 5–9
Transport Networks for mobile operators
Hilton Amsterdam, Amsterdam
http://www.iir-events.com/IIR-conf/Telecoms/EventView.aspx?EventID=1564
May 6
12:25 Optimizing the transport infrastructure to cost-effectively support and grow 2G and 3G networks
Speaker: Johan Mårtensson, Sales Program Manager
May 13
The Future of Broadband
Westin Times Square Hotel, New York
http://www.lightreading.com/live/event_information.asp?event_id=28757&survey_id=399
Panel session: The transition to FTTH: a US perspective
Speaker: Arun Bhikshesvaran, Chief Technology Officer and Vice President, Strategy and Marketing, Ericsson North America
May 21–23
3rd Annual LTE World Summit
Hotel Palace, Berlin
http://www.lteconference.com/newt/l/networkevolution/lte08/
May 21
Benefits and Impacts of Introducing LTE
Speaker: Erik Ekudden, Vice-President, Head of Standardization and Industry Initiatives
May 22
Evolution to a common GSM/WCDMA/LTE transport network
Speaker: Thomas Edwall, Director, Product Management Mobile Backhaul Solutions
Panel discussion: What is the best solution for managing the backhaul and reducing OPEX?
Panelist: Thomas Edwall, Director, Product Management, Mobile Backhaul Solutions
Roundtable discussion: Learning from the 3G handset strategy
Panelist: Anders Henriksson, Senior Manager, Access Technology
June 10–12
Billing & Information Systems Management
Beurs Van Berlage, Amsterdam
http://www.iir-events.com/IIR-conf/Telecoms/EventView.aspx?EventID=1627
June 10
Convergence stream
Sponsored by Ericsson
June 11
Successfully addressing the revenue management challenges for multimedia services and creating an improved user experience
Ericsson speaker TBD
June 16–19
FTTX Summit
MARITIM proArte Hotel, Berlin
http://www.iir-events.com/IIR-conf/Telecoms/EventView.aspx?EventID=1333&SearchResult=http%3a%2f%2fwww.iir-events.com%2fIIR-conf%2fSearchEvents.aspx
June 17
New business models for fiber-to-the-home networks
Speaker: Hans Eklund, Product Manager, Fiber Access Solutions
June 16–19
NXTcomm
Las Vegas Convention Center, Las Vegas
http://www.nxtcommshow.com/
June 17–20
CommunicAsia
Singapore Expo, Singapore
http://www.communicasia.com/
June 23–27
WDM & next generation optical networking
Hilton Cannes, Cannes, France
http://www.iir-events.com/IIR-conf/Telecoms/EventView.aspx?EventID=1284
June 24
Examining the market drivers and inhibitors around operator deployment of 40G and 100G WDM systems
Speaker: Dr Rodolfo di Muro, Optical Product Marketing Manager
June 24
4th Annual NGN Summit
Amsterdam
http://www.globaltelecomsbusiness.com/default.asp?page=1&hID=226
June 26–27
2nd NGMN Industry Conference
Maritim Hotel, Frankfurt
http://www.ngmn.org/index.php?id=6
July 15–18
Broadband World Forum – Asia
Hong Kong Convention & Exhibition Arena, Hong Kong
http://www.iec.org/events/2008/bbwf_asia/
July 16
Mobile Broadband — Technology Opportunities for Sustainable Growth
Chair: Martin Ljungberg, Director, Government and Industry Relations
July 18
How to Achieve Mass-Market Fixed-Mobile Multimedia Telephony
Chair: Eric Ericsson, Head of Multimedia Telephony
July 22–23
IPTV World forum North America
McCormick Place Convention Center, Chicago
September 10–16
IBC
RAI Center, Amsterdam
http://www.ibc.org/cgi-bin/displaypage.cgi?pageref=100
September 8–11
Q3 DSL Forum Quarterly Meeting
Quality Hotel Globe, Stockholm
http://www.dslforum.org/mevents/quarterlymtgs.shtml
September 22–26
Carrier Ethernet World Congress
MARITIM proArte Hotel, Berlin
http://www.iir-events.com/IIR-conf/Telecoms/EventView.aspx?EventID=1369
September 29–October 2
Broadband World Forum – Europe
Brussels Expo, Brussels
http://www.iec.org/events/2008/bbwf/
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.
Ericsson's global industry analyst relations team is: Peter Olofsson (Global, Head of Industry Analyst Relations), Kathy Egan (North America), Colleen Rosander (North America) Rob Elston (Europe/Middle East/Africa) and Eva E Andersson (Asia Pacific). Please contact the person responsible for activities in the region in which you are based.
The next newsletter will be issued following the quarterly report July 22, 2008. For further details regarding the quarterly reports, please check here.
To sign up to receive Ericsson press releases, please click here.
Don't forget to check out the industry analyst web site http://www.ericsson.com/ericsson/industryanalysts.
