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Newsletter: Q2 2004

Top Stories

ERICSSON STRENGTHENS ITS LEADERSHIP IN GSM AND GPRS WITH NEW CONTRACTS

MTN Group awarded Ericsson two five-year contracts for mobile network equipment and services worth more than USD1.5 billion to help grow MTN's business in sub-Saharan Africa (http://www.ericsson.com/press/20040524-160138.html).

Under a contract valued at more than USD210 million, Ericsson will help Russian mobile operator VimpelCom expand its GSM network, eventually giving subscribers access to the latest GPRS and EDGE services (http://www.ericsson.com/press/20040714-154601.html).

Leading Serbian GSM operator Mobtel signed a contract valued at EUR115 million for Ericsson to expand and upgrade its GSM 900/1800 network, including core, radio and microwave transmission infrastructure, GPRS equipment and enhanced mobile multimedia functionality (http://www.ericsson.com/press/20040617-150104.html). DCC/Astelit in Ukraine chose Ericsson to design and implement a new GSM network under a USD88 million contract. Ericsson's co-operation with DCC dates back to 1996, when it supplied the operator's first TDMA system (http://www.ericsson.com/press/20040701-091150.html).

Mongolian operator MobiCom selected Ericsson to supply GPRS and MMS systems as part of a turnkey project that will see Ericsson provide the network design, deployment and integration of MobiCom's GPRS network (http://www.ericsson.com/press/20040708-090057.html).
Hubei Mobile Communications in central China (http://www.ericsson.com/press/20040714-110126.html) and Guangxi Mobile in south-western China (http://www.ericsson.com/press/20040615-083116.html) will expand their GSM networks with Ericsson's help. Ericsson also signed a GSM/GPRS expansion contract with Jiangsu Mobile, which includes equipment supporting the latest version of GPRS and EDGE (http://www.ericsson.com/press/20040528-120319.html).

More recent contract wins include Telefónica Móviles in El Salvador, where Ericsson will provide radio access and core infrastructure to migrate the existing GSM network to GSM 850 MHz (http://www.ericsson.com/press/20040804-160331.html), and Chongqing Mobile in China (http://www.ericsson.com/press/20040805-094132.html).

"ASIA-PACIFIC IS THE GREENHOUSE FOR MOBILE COMMUNICATIONS"

During a media briefing at CommunicAsia in Singapore in June, Carl-Henric Svanberg, President and CEO of Ericsson, highlighted the important role of Asia in spearheading new global telecoms trends, especially in mobile communications: "We regard Asia-Pacific as the world's greenhouse for mobile communications." Details of Carl-Henric Svanberg's speech can be found at http://www.ericsson.com/press/20040615-091226.html.

CHINA'S NATIONAL GRAND THEATRE GETS IN-BUILDING SOLUTIONS FROM ERICSSON

Ericsson has been awarded a contract by Beijing Communication Corporation, a subsidiary of China Netcom Corporation, to provide In-Building Solutions (IBS) for the new National Grand Theatre in China. This is one of the world’s most complex IBS system ever built, incorporating six different technologies (Trunking Radio, CDMA2000 in 800MHz, GSM900, GSM1800, PHS, and WCDMA). The rollout will allow theatre audiences and visitors to make high quality mobile phone calls and access the Internet through high-speed WLAN.
http://www.ericsson.com/press/20040728-142124.html

Industry Viewpoint

The "Industry Viewpoint" section offers a view from Ericsson on emerging technologies, new products and industry trends. This time, we look at the evolution of WCDMA.

EVOLUTION OF 3G

While 3G gains commercial momentum, standardization bodies and R&D departments are already defining the next step in the evolution of WCDMA networks.

As penetration and use of packet data services increases and more high-bandwidth services are introduced, operators need to provide ever-higher data rates while maintaining or improving quality of service.

For WCDMA, the next step in meeting these requirements is the introduction of High Speed Downlink Packet Access (HSDPA), as specified by 3GPP Release 5. HSDPA improves the current WCDMA standard to facilitate data rates of up to 14Mbit/s in the downlink, reduce delay and provide between two and three times more capacity than current WCDMA systems.

HSDPA's capabilities are based on technological advances including shared channel transmission, 16QAM modulation, fast link adaptation and scheduling, and advanced requesting mechanisms ("soft-combining").

What is more, no new spectrum is needed for operators to roll out HSDPA and, as with WCDMA, it can simultaneously provide voice and data services on the same carrier.

The greatest beneficiaries of what is also referred to as WCDMA Evolved are applications such as file downloads, gaming, streaming services and wireless access to corporate LANs and intranets. For example, download times will typically be reduced from over four seconds to one second for a 30kB JPEG image and from over 130 seconds to just over four seconds for a 1MB MP3 audio file.

While HSDPA will enable more advanced wireless broadband applications, the next stage of WCDMA evolution is already under way, with the objective to further improve uplink capacity.

Read more about WCDMA Evolved at
http://www.ericsson.com/products/white_papers_pdf/wcdma_evolved.pdf.

Mobile Communications

3G ROLL-OUT UPDATE

As part of a frame agreement with Mobilkom Austria, Ericsson is delivering radio base stations to expand the operator's UMTS network. Mobilkom was one of the first operators to sign a UMTS contract with Ericsson, in June 2001, and became the first Austrian operator to offer 3G services in April 2003 (http://www.ericsson.com/press/20040429-130141.html).

In Southwest China, Ericsson is helping Sichuan Unicom to expand its CDMA2000 1X network into low-density areas and enhance overall network coverage and capacity. Ericsson is also delivering hardware and software to pave the way for future 3G deployment and expand GSM network coverage for Sichuan Mobile. The two contracts are valued at over USD120 million (http://www.ericsson.com/press/20040429-081559.html).

As EDGE continues to gain ground, Ericsson has been selected to supply a full commercial EDGE system to upgrade the GSM/GPRS network of Norwegian mobile operator, Telenor Mobil, (http://www.ericsson.com/press/20040609-144628.html).
Ericsson is also deploying a commercial EDGE system for Estonian mobile operator EMT (http://www.ericsson.com/press/20040628-155123.html), which launched the first EDGE-based services in June. Ålands Mobiltelefon, serving the Åland islands in Finland, has chosen Ericsson as sole supplier for an EDGE upgrade of its GSM/GPRS network (http://www.ericsson.com/press/20040713-101627.html). While in Thailand, Advanced Info Service Public Company Limited (AIS) is working with Ericsson to complete the second phase of its EDGE expansion in the Bangkok metropolitan area. Ericsson will also supply AIS's MMS solution (http://www.ericsson.com/press/20040615-083156.html).

In the Middle East, Batelco in Bahrain (http://www.ericsson.com/press/20040726-140216.html) and MobilCom in Jordan (http://www.ericsson.com/press/20040804-100138.html) have recently opted for Ericsson to deliver full commercial EDGE systems

T-MOBILE HUNGARY AND ERICSSON ACHIEVE WORLD RECORD EDGE DATA SPEED

T-Mobile's EDGE network in Hungary achieved a world record peak data speed of 235.6kbit/s across the radio interface during a two-week performance test in Budapest. The aim was to assess the robustness and performance of Ericsson’s EDGE system in a live radio environment. EDGE services have been commercially available on T-Mobile's network in Hungary since November 2003.
http://www.ericsson.com/press/20040702-153127.html

ERICSSON SHOWS ADVANCES IN 3G SERVICES AT COMMUNICASIA 2004

At CommunicAsia 2004, Ericsson demonstrated continued market progress for 3G services with interoperable and commercial 3G handsets from eight leading handset vendors. Visitors could experience live video telephony and streaming services, proving that interoperability between commercial WCDMA handsets and systems has made enormous progress.
http://www.ericsson.com/press/20040614-110146.html

TELENOR SIGNS GLOBAL MINI-LINK FRAMEWORK AGREEMENT

Telenor and Ericsson have signed a global frame agreement for the provision of the MINI-LINK point-to-point microwave transmission system to Telenor affiliates worldwide. The agreement includes high-capacity radios and the new MINI-LINK Traffic Node, which enables operators to meet 2.5G and 3G traffic demands at a lower cost and with increased network control.
http://www.ericsson.com/press/20040628-113136.html

EIRCOM DEPLOYS ERICSSON'S WLAN IN IRELAND

Ericsson's public WLAN system is powering Irish mobile operator Eircom's recently launched wireless broadband service. The solution enables Eircom to tailor content to its partners' needs and includes systems for revenue sharing and granting special access rights to preferred customers. Service profiles can be tailored to the individual user, to the property (for example, airports, hotels and cafés), or to groups such as corporate users, who can connect to their office securely through a VPN and a personal firewall.
http://www.ericsson.com/press/20040621-103146.html

BLUETOOTH GOES AUTOMOTIVE

Ericsson will license its Bluetooth software to Wavecom for automotive products that enable hands-free telephony without the need to switch SIM cards between the mobile and the car phone. A reference design has already been developed by Wavecom on its GSM/GPRS/GPS product for automotive customers.
http://www.ericsson.com/press/20040518-101150.html

INDIA'S BHARTI GOES ´IN` WITH ERICSSON

Adding to its managed services contract with Bharti, Ericsson is to supply India's first nationwide single-vendor Intelligent Network (IN) solution and prepaid system to the operator. Providing functionality such as real-time cost and spending control, unique bonus and promotion features and comprehensive data charging, it will enable the Indian operator to offer converged services to its post- and pre-paid subscribers.
http://www.ericsson.com/press/20040622-104910.html
NOTE: Ericsson is a global market leading in pre-paid systems with 100 customers across 70 countries using its charging solutions. For more information please refer to Ericsson's white paper "Convergent Charging and Business Support" at
http://www.ericsson.com/products/white_papers_pdf/convergent_charging_business_support.pdf

Broadband and Multiservice Networks

ETHERNET DSL ACCESS SET FOR NATIONAL ROLL-OUT IN FINLAND

A contract with Finnet Logistics, the central procurement organization of the Finnet Group, will make Ericsson's Ethernet DSL Access solution available to all Finnet companies for countrywide deployment. Developing broadband services nationwide is a key strategic focus and the agreement with Ericsson will enable Finnet operators to build broadband access networks cost-effectively to make broadband a mass-market business.
http://www.ericsson.com/press/20040706-120123.html

ERICSSON IN IP BACKBONE NETWORK EXPANSION CONTRACT WITH CHINA MOBILE

Ericsson has been chosen by China Mobile Communications Corporation for its CMNet Phase Two IP backbone networks expansion, which will increase backbone bandwidth, reliability and the range of mobile Internet applications on offer. Ericsson is providing IP/MPLS routing platforms through its long-term strategic relationship with Juniper Networks.
http://www.ericsson.com/press/20040729-143054.html

Enterprise Communications

ERICSSON REINFORCES COMMITMENT TO ENTERPRISE SEGMENT

To strengthen its offering to business customers – a segment identified as a key area for the company's future expansion - Ericsson has re-organised its enterprise market activities. Previously a wholly-owned subsidiary, Ericsson Enterprise has been re-integrated as a business unit, headed by Mats Dahlin. The new business unit Enterprise offers both enterprise communications for businesses and solutions for operators and service providers addressing the enterprise market.
NOTE: A new white paper from Ericsson provides a high-level analysis of current enterprise communications trends. It discusses the needs, opportunities and challenges for both businesses and operators from the perspective of Ericsson as a leading enterprise solutions provider with more than 100,000 business customers worldwide:
http://www.ericsson.com/products/white_papers_pdf/enterprise.pdf.

Managed and Professional Services

CONTINUED SUCCESS WITH MANAGED SERVICES HOSTING

The second quarter of 2004 saw Ericsson sustain its leadership in managed services. Telefónica Móvil Chile selected Ericsson to integrate, implement and host its mobile portal, including sourcing and distribution of content (http://www.ericsson.com/press/20040615-083513.html). Five Hungarian wireline operators - PanTel, Monortel, Invitel, Hungarotel and Emitel - awarded contracts to Ericsson for implementing, integrating and hosting a number portability service, a basic requirement for service providers in the European Union. Ericsson's solution is connected to the reference database of the Hungarian National Communications Authority to enable efficient wireline number portability (http://www.ericsson.com/press/20040615-083336.html).
In the USA, Midwest Wireless and Rural Cellular Corporation handed the integration, hosting and management of their multimedia messaging services (MMS) to Ericsson in order to provide MMS services more quickly and cost-efficiently than if they were to own and operate the services themselves (http://www.ericsson.com/press/20040615-083322.html). More recently, Ericsson was chosen by TeliaSonera in Sweden to provide and host the operator's new M-USE mobile music. Ericsson takes the overall responsibility for the music service, including content aggregation, Digital Rights Management (DRM) and platform development (http://www.ericsson.com/press/20040809-133133.html).

TWO BECOME ONE IN INDONESIA

PT Indosat, one of the largest operators in Indonesia, has chosen Ericsson to integrate its two existing GSM networks, as well as expand network capacity and improve quality in Jakarta and surrounding areas. As part of the USD120 million turnkey contract, Ericsson will supply core, radio access and transmission infrastructure, and manage, implement and optimize network integration. http://www.ericsson.com/press/20040525-153250.html

Corporate News and Information

ERICSSON EARNINGS REPORTS FOR THE QUARTER ENDING 30 JUNE 2004

The results and additional information can be found at http://www.ericsson.com/investors/financial_reports/2004/6month04.shtml.

For Sony Ericsson's results please go to http://www.ericsson.com/press/20040715-083129.html.

UPCOMING EVENTS

Ericsson is participating in the following events. If you are interested in participating in any of these events, please contact Ericsson industry analyst relations at industry.analysts@ericsson.com.

Push-To-Talk, September 7-8, London, UK

  • "Examining interoperability issues for PTT" - Panel Discussion, September 7, 11.20am
    Speaker: Niclas Medman, Senior Marketing Manager, Ericsson
  • "What are the Quality of Service issues with Push-to-Talk?" - September 7, 3.00pm
    Speaker: Lennart Landersten, Senior Product Marketing Manager, Ericsson
  • Ericsson Strategy & Technology Summit Asia 2004

    New Delhi, India, September 19-20
    Honk Kong, September 22-23
    http://www.ericsson.com/press/events/2004/index.shtml

    450 Digitalization Conference, September 8-9, Bucharest, Romania

    "Entering and exploring the CDMA 450 MHz Market", September 8, 1:50pm Speaker: Henric Ehrenblad, Director, Ericsson
    http://www.450event.com

    Broadband World Forum 2004, September 20-23, Venice, Italy

    • "Broadband content trends and applications", September 2, 9am
      Plenary panel speaker: Torbjörn Nilsson, Senior Vice President, Strategy and Product Management
    • "Strategies for integrating wireless and wireline", September 23, 3.45pm Conference track chairperson: Ove Anebygd, Vice President Wireline Networks, Ericsson
      Speakers: Peter Linder, Technical Director, Product Area Wireline Networks, Ericsson and Andy Cook, Chief Network Mobility Architect, Office of Group Chief Technology Officer, BT

    CDMA Americas Congress, September 27-30, Miami, Florida

    "The world of IP Multimedia", September 28, 4:35pm
    Speaker: Angel Ruiz, President & CEO, Ericsson North America

    Entering the Push-To-Talk market, October 6-7, 2004, London, UK

    "How to implement an IMS based solution for mass-market uptake"
    Speaker: Niclas Medman, Senior Marketing Manager, Ericsson
    http://www.b2b-conferences.com/Telecoms.html

    Push-To-Talk World Asia 2004, October 12-13, Singapore

    • "Unleash new revenue stream with Push-To-Talk"
      Chairman: Thomas Ageskog Vice President, Mobile Internet & Systems Integration Asia Pacific, Ericsson
    • "Strategic Panel: Adding bells and whistles to drive Push-To-Talk penetration", October 12, 10.30am
      Speaker: Giles Vincent, Vice President, Ericsson
    • "How to implement an IMS based Push-To-Talk for mass-market uptake", October 13, 9.40am
      Speaker: Niclas Medman, Strategic Marketing Manager, Ericsson
    • "Standards Debate: Who will win the Race?", October 13, 11.10am
      Speaker: Niclas Medman, Strategic Marketing Manager, Ericsson

    3G World Congress, November 15- 19, Hong Kong

    Keynote speaker: Carl-Henric Svanberg, President and CEO, Ericsson

    Push-To-Talk World Summit, November 30-December 2, Rome, Italy

    Speaker: Niclas Medman, Strategic Marketing Manager, Ericsson
    http://www.iir-telecoms.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.