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Overview
Top Stories
Ericsson reports strong sales growth in second quarter
ntl:Telewest picks Ericsson for VoIP
Sony Ericsson doubles income before taxes
Viewpoint - Delivering high-performance broadband in all flavors
To make real business sense, and to become a mass-market service, IPTV must do much more than merely deliver television programming over the Internet. With the right combination of standardized technologies, telecom operators and their partners have an opportunity to create truly personalized, interactive IPTV services with integrated media and communication services. With IP Multimedia Subsystem (IMS) and Digital Living Network Alliance (DLNA) at the heart of these offerings, the vision of converged fixed and mobile triple play services can become reality.
In essence, IPTV provides an opportunity for telecom operators to integrate media with communications services to deliver interactive, personalized multimedia services, no matter where the viewer is. IPTV has the potential to give users access to every global TV channel, with the ability to choose content on demand - customized to their own profiles - whenever it suits them. What's more, subscribers will be able to access these services with the same user interface from any device - from mobile phones, portable media players and games consoles, through desktop and laptop computers, to widescreen High Definition TV (HDTV) sets.
Integrating two-way fixed and mobile communications into the IPTV mix gives it a higher level of interactivity. Not only can users view video on demand wherever they are, they can also talk, chat, send text messages and take part in things like voting and consumer polling - which could evolve into purchase transactions and targeted, interactive advertising. Users will be able to create personal lists of favorites and bookmarks, and even create TV viewing buddy lists that alert them when friends are watching a certain TV program.
Delivering this vision and creating a mass market for personalized multimedia services requires a standardized way to deliver IPTV to all the different device types. This is why Ericsson is driving the harmonization of IPTV services delivered over broadband, based on open standards. Ericsson is working with the relevant standardization bodies to assure economies of scale and interoperability in IPTV reference architecture and interfaces.
One exciting example is the combination of DLNA technologies for digital entertainment with the IMS standard for delivering enriched communications services. This was the foundation of the live joint demonstration between Ericsson and Sony in June during GLOBALCOMM 2006, which showed how various products could push and pull content to and from a home server. Users were able to wirelessly view digital photos stored on a living room TV, use a home gateway for instant messaging between mobile phones and the TV, and access content stored on a home PC via a mobile phone.
IMS will provide the security and privacy users will need when accessing interactive content, media and communications services both within and outside the home. For example, each member of a family could have separate - but linked - accounts, that could alert parents and ask for their consent in real time if children were to attempt to view certain content.
End-to-end solution
Ericsson sees the IPTV market evolving in three distinct phases. First, there will be IPTV entry solutions, with small IMS 'hooks' to acquaint consumers with the concept of personalized, interactive IPTV services, and to start building the business model. Next, IMS capabilities will be introduced into the media streams, with more or less the same TV services and still focused largely on fixed services. Third, the full vision will be realized, and users will have access to services from a variety of screen sizes.
Ericsson's initial end-to-end IPTV solution enables a complete range of services, including broadcast TV (both standard and high-definition), video-on-demand, network personal video recording and electronic programming guides.
The solution includes the Middleware Application Server (MAS) and Content Distribution Platform (CDP), which are based on software from IP video delivery leader Kasenna. Ericsson is industrializing this solution to provide telecom-grade performance and scalability, and to offer complete lifecycle management. The solution also includes guidelines for integration with IMS functions such as charging and end-user authentication.
In parallel with the development of the IPTV platform, Ericsson is enhancing its range of broadband transport and aggregation products to address the need for increased bandwidth demands of interactive multimedia services. One example is a new site solution concept for the high-performance Ethernet DSL Access product family, based on the new VDSL2 standard. This provides a tenfold performance improvement over previous generations of the product family as it substantially reduces roll-out costs and complexity.
With its market leadership in both IMS and multimedia solutions - with 21 commercial IMS contracts and 39 commercial mobile TV & video contracts in place worldwide - Ericsson is committed to making interactive, personalized IPTV services a mass-market success for its operator customers.
With an open, standards-based approach in place, the stage will finally be set for a winning combination of telecom and TV technologies that have, until now, led separate existences.
Mobile networks
GSM: 15 years old, and the undisputed leader
On 1st July 2006, the GSM community celebrated the 15th anniversary of the first commercial GSM call, which was made over an Ericsson network operated by Mannesmann in Germany (now Vodafone). Today, approximately every third person on the planet has a GSM phone: the two-billionth subscriber signed up in June 2006, meaning that 80 per cent of the world's mobile subscribers are connected to the GSM/EDGE/WCDMA family.
Looking to the future, GSM - and its 3G technology descendants EDGE, WCDMA and HSPA - could double Internet usage within a few years. In emerging markets especially, such technologies are often the only means of Internet access.
Continued strong subscriber growth and the accelerating shift to broadband and multimedia capabilities mean GSM operators need fast, cost-effective ways to improve the capacity and data-handling capabilities of their networks. Ultimately this will mean moving to all-IP operation.
Several Ericsson announcements during the quarter reflect how GSM operators around the world are evolving their networks:
- Israeli mobile operator Partner chose Ericsson Mobile Softswitch solution to expand its network capacity and enable it to introduce high-quality services quickly. The solution will converge Partner's 2G and 3G core networks and pave the way to an all-IP network (Press release)
- Malaysia's fastest-growing mobile operator DiGi selected Ericsson to upgrade and modernize its GSM radio network to EDGE, and to upgrade and expand its core network to provide additional subscriber capacity (Press release)
- Malaysian operator Celcom Berhad chose Ericsson to expand, modernize and upgrade its GSM network. The contract includes the Ericsson Mobile Softswitch solution and other equipment, as well as the deployment and integration of radio access network equipment (Press release)
- Laos's largest telecom service provider Lao Telecom awarded Ericsson a contract to expand its GSM network in four of the country's central provinces, including Vientiane, the nation's capital. The contract includes core and radio network equipment, along with deployment and optimization services (Press release)
- Turkish mobile operator Avea selected Ericsson to expand its GSM network, building on previous expansion contracts signed in 2002 and 2005 (Press release)
- Telekom Srbija chose Ericsson to expand and upgrade its GSM/GPRS/EDGE network in Serbia. Additionally, Ericsson will provide its Mobile Softswitch solution and a suite of related services (Press release).
Ericsson continues to dominate HSPA
Ericsson is continuing to build on its dominant position in WCDMA by leading the upgrade to HSPA (High Speed Packet Access) and its mobile broadband capabilities.
An evolution of WCDMA, HSPA enables operators to introduce such attractive services as Mobile Broadband with Mobile TV, Mobile Music, high-speed Internet connectivity and Fixed Wireless services.
Ericsson's HSPA solution offers ADSL-like peak downlink data rates of up to 3.6Mbit/s today, and up to 14.4Mbit/s later this year.
Ericsson is the primary supplier of more than half of all commercially launched WCDMA networks, and of the world's first commercial HSPA networks (for the downlink, HSDPA). Ericsson expects the first commercial launches of HSPA for the uplink (HSUPA) in early 2007. Currently there are more than 40 Ericsson HSDPA networks being rolled out around the world - over half of these have already been commercially launched.
During the quarter Ericsson has made a number of HSPA-related announcements:
- Bite chose Ericsson to upgrade its 3G network with HSDPA in Lithuania and to build an HSDPA-enabled WCDMA/UMTS network in Latvia (Press release)
- Saudi Telecom selected Ericsson as the prime supplier for its new HSPA network, which will enable the operator to introduce a wide range of premium quality multimedia and high-speed data services (Press release)
- Saudi Arabian mobile operator Mobily chose Ericsson to build its HSPA-enabled 3G network and to expand its existing GSM network using the Ericsson Mobile Softswitch solution and radio, transmission and core network equipment (Press release)
- Estonian mobile operator EMT launched commercial mobile broadband services based on HSPA in Tallinn, following Ericsson's successful upgrade of its 3G WCDMA network (Press release).
Celcom selects Ericsson for mobile TV
Malaysian mobile operator Celcom has awarded Ericsson a contract to provide mobile TV and video solutions. Ericsson will supply and integrate its convergent streaming solution, which will provide Celcom with a single platform for packet- and circuit-switched mobile TV. Ericsson's mobile TV service enables users to use their mobile phones as an interactive 'remote control' to switch between channels, vote, chat and communicate with a TV presenter while watching TV on their mobile phones (Press release).
Ericsson Expander site solutions cut roll-out costs by 30 per cent
New radio network site and transmission solutions for Ericsson Expander will help mobile operators serve low-spending subscribers profitably by cutting CAPEX and OPEX by at least 30 per cent in new coverage areas. The enhanced Ericsson Expander solutions not only improve radio network performance - so that areas can be served by up to 50 per cent fewer radio sites - but also address other major cost areas, such as power consumption, transmission, and network roll-out (Press release).
Warid Telecom deploys real-time charging and value-added services
Bangladeshi mobile operator Warid Telecom will deploy Ericsson's real-time charging and value-added services (VAS) solutions throughout 61 districts in the country to provide functions such as real-time costs and spending control, and real-time bonus and balance notifications (Press release).
New IMS developer program
Ericsson has launched an IMS developer program as part of Ericsson Mobility World to accelerate the creation of innovative applications and services, to drive user demand for IMS-enabled networks and to create further revenue-generating opportunities for operators (Press release).
Thailand’s new hub airport gets multi-operator in-building coverage
Ericsson has completed the turnkey integration of a multi-operator in-building coverage solution at Thailand's new international Suvarnabhumi Airport, which is poised to be a major transportation hub for south-east Asia. The system incorporates six different technologies, including GSM and WCDMA, and is to be used by Thailand's top five mobile operators - AIS, DTAC, Hutchison CAT Wireless, Thai Mobile and True Move (Press release).
Fixed networks
ntl:Telewest picks Ericsson for VoIP
UK residential broadband and triple play service provider ntl:Telewest has selected Ericsson as a technology and services partner to help develop its network using VoIP technology. Under the five-year agreement, Ericsson will initially build a residential Voice-over-Broadband service using its IMS platform - which has been installed and is undergoing testing ahead of launch (Press release).
Telenor signs global microwave transmission deal
Norwegian operator Telenor and Ericsson have signed a global frame agreement for the supply of microwave transmission solutions. The two-year contract is an expansion of the existing partnership and covers all majority-owned Telenor group affiliates worldwide. Ericsson will supply Telenor with its suite of MINI-LINK and Marconi-branded point-to-point microwave transmission products, including high-capacity radios, smart traffic nodes and long- and short-haul systems (Press release).
SingTel trials ultra-high speed broadband
Asia's leading communications group SingTel has chosen Ericsson to conduct a trial of ultra-high speed broadband technology in Singapore. The trial will use Ericsson's Ethernet DSL Access (EDA) very high bit-rate DSL 2 (VDSL2) technology to deliver access speeds of up to 100Mbit/s over existing copper lines (Press release).
BayanTel goes for broadband subscriber growth with EDA
Filipino operator BayanTel is to continue its nationwide deployment of Ericsson's EDA solution. Additionally, Ericsson will provide a comprehensive portfolio of services including supply, delivery, installation, integration, staff training, testing and commissioning of the solution (Press release).
Ericsson and Sony show IMS-based multimedia future at GLOBALCOMM
During GLOBALCOMM 2006 in June in Chicago, Ericsson and Sony jointly demonstrated the benefits of combining IP Multimedia Subsystem (IMS)-based personalized TV and Sony's home network based on Digital Living Network Alliance (DLNA) standards. The combination of technologies based on IMS and DLNA will enable end users to access their digital media anywhere, any time (Press release). (See Industry Viewpoint, above.)
End-to-end IPTV solution launched
Ericsson has launched an end-to-end IPTV solution that will deliver a complete range of services, including broadcast TV (both standard and high-definition), video on demand, network personal video recording and electronic programming guides (Press release ). (See Industry Viewpoint, above.)
VDSL2 site concept to accelerate interactive HDTV roll-out
Ericsson has launched a site concept for its high-performance Ethernet DSL Access (EDA) solution, based on the new VDSL2 standard. The new system offers a ten-fold performance improvement over previous generations of the EDA product family (Press release ). (See Industry Viewpoint, above.)
Elion chooses Ericsson for real-time multimedia services
Estonia's leading fixed broadband provider Elion has selected Ericsson's IP Multimedia Subsystem (IMS) solution to deliver a new range of real-time multimedia services for both enterprises and consumers. These will initially include IP telephony, video telephony, instant messaging and IP Centrex services (Press release).
Telefónica opts for Ericsson metro optical network
Telefónica has selected Ericsson's multi-haul WDM optical network solution as a cornerstone of its next-generation metropolitan transport network in Spain (Press release).
Telecom services
Digitel launches ringback tone music service in Venezuela
Venezuelan GSM operator Digitel has launched its 'Music Ton' ringback tone music service based on Ericsson's Personalized Greeting Service. The service enables subscribers to have their choice of song or other sound played back to people who call them, while they are waiting for their call to be answered (Press release).
Ericsson plays host to Centennial Wireless mobile content
US mobile operator Centennial Wireless has selected Ericsson to integrate, host and manage a mobile content service. The service is based on a next-generation portal that includes an advanced recommendation engine and promotional features to help increase content sales across its entire subscriber base. Ericsson is supplying editorial content management and licensing content such as MasterTones, ringtones, wallpapers, games and alerts (Press release).
PTC selects Ericsson’s white label personalized music service
Polish mobile operator Polska Telefonia Cyfrowa (PTC) has signed a managed services agreement for the delivery of Ericsson's white-label personalized music service. The service, branded Strefa Muzyki will deliver music from all major record labels, as well as from numerous independent labels to more than nine million subscribers (Press release).
Ericsson to offer independent mobile music from Pocket Group
UK-based independent music distributor Pocket Group and Ericsson have signed a global agreement that allows Ericsson to distribute ringtones and full track downloads from Pocket Group's independent labels. The contract means Ericsson will be able to provide operators with content from leading artists such as The Prodigy, Katie Melua, Franz Ferdinand, Basement Jaxx and FatBoy Slim (Press release).
Sulake chooses IPX billing and payment solution for online games
Interactive entertainment company Sulake has chosen Ericsson's Internet Payment eXchange (IPX) content billing and payment solution for its Habbo Hotel virtual meeting place and gaming environment. IPX will be used to support premium SMS and WAP payment services in Scandinavia (Press release).
Netia selects Ericsson to manage its network
Polish network operator Netia has signed an exclusive five-year managed services partnership contract with Ericsson, under which Ericsson will be responsible for managing Netia's wireline networks and service deliveries to customers (Press release).
Enterprise communications
Rural Cellular Corporation to offer Ericsson-hosted mobile e-mail
One Phone integrates with Microsoft Live Communications Server
Ericsson is providing integration between its One Phone solution and Microsoft Office Live Communications Server 2005. This will enable users to 'click to dial' from their computer desktops, using any phone connected to the corporate phone system - including mobile phones (Press release).
Electrolux chooses Ericsson hosted push e-mail solution
International home appliances company Electrolux has selected Ericsson's Mobile Organizer (EMO) to provide its employees with push e-mail and personal information management (PIM) applications from their mobile devices (Press release).
Corporate news
Ericsson reports strong sales growth in second quarter
Sony Ericsson doubles income before taxes
2005 sustainability report published
Ericsson to sell defense business to Saab
Ericsson has agreed to sell its defense business, Ericsson Microwave Systems AB, and its 40 per cent holding in Saab Ericsson Space to Saab, for SEK3.8 billion in cash. The agreement involves transfer of approximately 1,250 employees, and is expected to be completed in September 2006. Ericsson is to retain its National Security and Public Safety business (Press release).
Ericsson to acquire Netwise
Ericsson has announced a recommended cash offer for Netwise AB, a supplier of enterprise communication and collaboration solutions. Netwise's presence and availability management solutions - which include contact management, advanced attendant solutions, multi-vendor CPE and operator enterprise solutions - will benefit from Ericsson's global market presence (Press release).
Events
Industry events
28-31 August
In-building Solutions Asia Pacific
Location: The Excelsior Hotel, Hong Kong
Website: www.iir-conferences.com/in-buildingasiapac
Tuesday, 29 August, 10:20am
Topic: Effectively Managing the Bigger Picture: Incorporating In-Building Solutions as a Key Element of 3G Macro Network Development
Speaker: Peter Holmertz, Business Builder - Global Services Network Roll-Out, Ericsson
Thursday, 31 August
Post conference masterclass: Implementing The In-Building Layer as a part of overall network design: securing coverage, capacity and performance while reducing capex and opex
11-14 September
VON Fall 2006
Location: Boston Convention Center, Boston MA USA
Website: http://von.com
12-14 September
CTIA Wireless IT & Entertainment
Location: Los Angeles, California, USA
Website: http://www.wirelessit.com/
16-20 September 2006
AEIT National Conference
Location: Capri Island, Italy
Website: http://www.federaeit.it/convegnonazionale2006/
24-28 September 2006
ECOC - European Conference on Optical Communication
Location: Palais des Festivals et des Congrès, Cannes, France
Website: http://www.ecoc2006.org/welcome/index.php
8-13 October
Gartner Symposium ITXpo
Location: Walt Disney World, Orlando, Florida, USA
Website: http://www.gartner.com/it/sym/2006_/sym16/sym16_home.jsp
9-12 October
Broadband World Forum Europe
Location: CNIT La Défense, Paris, France
Tuesday, 10 October, 2:00pm-3:30pm
Technical session topic: IMS Deployments to Date and Carrier Experiences
Chair: Magnus Furustam, Vice President IMS Program, Ericsson
Tuesday, 10 October, 3:45pm-5:15pm
Technical session topic: HSDPA Broadband Services - A Commercial Reality
Chair: Mikael Bäck, Vice president, WCDMA Radio networks, Business Unit Access, Ericsson
9-12 October
WiMAX Global Comforum
Location: CNIT La Défense, Paris, France
16-20 October
3GSM World Congress Asia
Location: Singapore
Website: http://www.3gsmasia.com/
5-9 November
Gartner Symposium ITXpo
Location: Palais des Festivales, Cannes, France
Website: http://www.gartner.com/it/sym/2006_/esc18/esc18_home.jsp
6-9 November
VON Europe
Location: ICC, Berlin, Germany
4-8 December
ITU Telecom World
Location: AsiaWorld-Expo, Hong Kong, China
Website: http://www.itu.int/WORLD2006/
Ericsson events
9-10 August
Ericsson North American Forum for Industry Analysts
Location: Boston
For further information about industry analyst activities, please contact industry.analysts@ericsson.com or refer to our website.
Telebriefings:
16/23 August: Implications of IMS and revenue management: convergent charging and billing solutions
13/20/27 September: Mobile gaming and Media Platform Solutions
25 October: Prime integrator
22 November: Competing and complementing technologies
20 December: Richer communication services
Date to be confirmed: TV solutions: IPTV and Mobile TV
Please note: these topics were correct at the time of sending this newsletter. Please check here regularly for an updated list of scheduled telebriefings.
If you missed a telebriefing or would like further information, check out the archive where you can listen to the telebriefing, and access the presentation and script here.
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 19 October 2006. For further details regarding the quarterly reports, please check here.
Don't forget to check out the industry analyst web-site http://www.ericsson.com/ericsson/industryanalysts/
If you would like further information about any of the stories above or to arrange a briefing, please send an e-mail to industry.analysts@ericsson.com or contact Eva Sparr (Global, North America & Asia Pacific), Frank Puglia, (North America), Rob Elston (North America, Europe and the Middle East) or Pia Sörensen (Europe and the Middle East).
