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Newsletter: Q2 2008
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Ericsson reports second quarter results
Ericsson has reported net sales of SEK48.5 billion for the second quarter of 2008, 2 percent higher than for the same quarter a year earlier. Sales have continued to pick up in North America, while the company sees good development in most high-growth markets; Western Europe has remained slow (Press release).
Sony Ericsson reports break-even performance in challenging market
Sony Ericsson has reported net sales of EUR2,820 million for the second quarter of 2008, 9 percent lower than for the same quarter of 2007. Unfavorable exchange rate fluctuations and slimmer margins drove net profit for the quarter down to EUR6 million (Press release).
Viewpoint – WiMAX IPR: Securing a fair deal for all
By Gustav Brismark, Vice President, Patent Strategy and Portfolio Management
Something of a technological urban legend has developed around mobile WiMAX as an access technology that will somehow offer lower royalty rates than those for other mobile broadband standards. In reality, there is unlikely to be much, if any, difference between the intellectual property rights (IPR) costs for mobile WiMAX, WCDMA/HSPA and LTE. Although Ericsson will not develop our own WiMAX products – as we do not expect volumes to justify the investment – we welcome those who do to license the necessary Ericsson IPR under fair, reasonable and non-discriminatory (FRAND) commitments, as with other standards.
Although the industry at large has made significant progress toward equitable contribution and distribution of royalties, we must be careful when considering the relative merits of new wireless technologies from an IPR perspective. Many of the techniques used in WiMAX, for example, are also used in other wireless technologies, and the rights of those who hold the patents still apply.
As the leader in wireless communications research and development and the main innovator of GSM/GPRS/EDGE, WCDMA/HSPA and LTE, Ericsson has developed a strong patent portfolio covering basic technologies in the cellular field, and this includes one of the industry’s strongest WiMAX essential patent portfolios. Efficient support for mobility and high-speed packet data over wireless are both areas in which WiMAX uses Ericsson inventions, for example.
To make our technology available to those developing WiMAX devices or infrastructure, Ericsson has begun a WiMAX patent licensing program based on bilateral negotiations. The program applies to current and future evolutions of WiMAX and will be offered under FRAND terms to any supplier of WiMAX products.
As other members of international standard-setting bodies like ETSI and IEEE do, Ericsson voluntarily commits to license essential patents it holds on FRAND terms. In practice, this means there are reasonable accumulated IPR costs for a new player entering the market, and contributors to standards are compensated in proportion to their essential patent portfolios.
FRAND implies that the companies agree – subject to reciprocity – to reasonable, maximum aggregate royalty rates based on the value added by the technology to the final product. Further, they participate in flexible, bilateral licensing negotiations or patent pool initiatives, according to the licensors’ proportional shares of all standard essential IPR for the relevant product category.
In the GSM world, the FRAND principle has fostered a global market of more than three billion subscriptions– which continues to grow at a rate of 1.2 million every day and in which 800 million handsets were sold in 2007. As a result, suppliers of infrastructure, devices and software compete on equitable terms and with low IPR costs. By reaching reasonable IPR agreements in GSM/WCDMA/HSPA, Ericsson has helped other companies gain access to the GSM/WCDMA/HSPA market, while at the same time securing freedom for Ericsson to be able to offer products with low IPR costs to its customers.
In April 2008, Ericsson announced its role in a joint initiative with Alcatel-Lucent, NEC, NextWave Wireless, Nokia, Nokia Siemens Networks and Sony Ericsson to enhance the predictability and transparency of IPR licensing costs in future 3GPP LTE and Service Architecture Evolution standard (LTE/SAE) technology. This initiative includes a commitment to an IPR licensing framework that provides more predictable maximum aggregate IPR costs for LTE technology and enables early adoption of this technology into products. The parties have suggested a framework that helps ensure reasonable, transparent single-digit percentage maximum royalty rates for LTE essential IPR in handsets.
We neither know today how large the WiMAX market will be, nor the overall IPR costs of the players that will win large market share. Nevertheless, IPR is unlikely to provide any differentiator between 3G/HSPA, LTE and WiMAX.
No matter which technology is chosen, there must be a fair deal both for patent holders and licensees of the IPR. With its WiMAX patent licensing program, Ericsson again pledges its commitment to fairness in IPR licensing.
If you would like to discuss this issue in more detail, please contact industry.analysts@ericsson.com.
Digicel Suriname deploys first solar solution in South America
Digicel Group, the largest mobile operator in the Caribbean, has chosen Ericsson’s pioneering solar-powered site solution to provide energy-lean network coverage in remote areas of Suriname (Press release).
Telstra and Ericsson in 3G world-first
Australian mobile operator Telstra became the first operator to activate Ericsson’s 3G Direct Tunnel feature in its Next G network. The new feature provides a capacity increase in Telstra’s mobile packet core network, supporting the fast growth of mobile broadband traffic (Press release).
PTC chooses Mobile Softswitch for Poland
Polish mobile operator Polska Telefonia Cyfrowa (PTC) has chosen Ericsson as supplier and systems integrator of its Mobile Softswitch Solution to boost network capacity, performance and coverage, and support a range of innovative multimedia services (Press release).
Meteor to deploy WCDMA/HSPA in Ireland
Irish mobile operator Meteor selected Ericsson as sole supplier of its WCDMA/HSPA network, including microwave transmission (Press release).
Digicel selects Ericsson GSM/EDGE network for Honduras
Mobile operator Digicel has chosen Ericsson as the sole supplier of a GSM/EDGE network in Honduras (Press release).
Sunrise expands WCDMA/HSPA network
Sunrise chose Ericsson to expand its WCDMA/HSPA network to bring high-speed mobile broadband coverage to its subscribers in a number of cities across Switzerland (Press release).
SingTel awards Ericsson US$160m GSM/WCDMA/HSPA contract
Mobile operator SingTel awarded Ericsson a US$160 million contract to expand and enhance its GSM/WCDMA/HSPA networks in Singapore (Press release).
Telkomsel to deploy next-generation Mobile Softswitch
Indonesian operator mobile operator Telkomsel selected Ericsson’s Mobile Softswitch Solution (MSS), including the new MSC Server Blade Cluster (Press release).
Brasil Telecom chooses Ericsson for WCDMA/HSPA and IMS
Mobile operator Brasil Telecom selected Ericsson to provide a WCDMA/HSPA network and the deployment and systems integration of an IP Multimedia Subsystem (IMS) solution (Press release).
Vodafone Ireland selects Ericsson for IMS and real-time charging
Ireland’s largest mobile operator Vodafone Ireland selected Ericsson as systems integrator of a real-time charging and IP Multimedia Subsystem (IMS) solution, and to upgrade and expand the operator’s network (Press release).
Innovative IPTV and mobile channels for Volvo Ocean Race
During this year’s Volvo Ocean Race, race-followers will be able to keep up to date with the latest developments via live mobile TV – or through IPTV in each race village – delivered by Ericsson. Viewers will enjoy personalized coverage via a user-controlled camera interface that offers multiple in-port race views (Press release).
Toshiba selects Ericsson mobile broadband for business laptops
Toshiba selected Ericsson as partner of choice for the integration of HSPA mobile broadband modules into its business laptop range in Europe, the Middle East and Africa (EMEA) ( Press release).
Dell and Ericsson team up for HSPA-enabled laptops
Dell next-generation laptops will support seamless roaming on tri-band HSPA mobile broadband networks, thanks to an agreement that will see the PC maker offer built-in HSPA modules from Ericsson beginning Q2 2008 ( Press release).
Cable & Wireless chooses Ericsson IP core for Jamaica
Cable & Wireless Jamaica chose Ericsson as its long-term strategic business partner to upgrade and expand its network. Under the three-year agreement, Ericsson will transform the operator’s core network to a next-generation IP network, using Mobile Softswitch, Mobile Packet Backbone Network and Multi Mediation solutions ( Press release).
First 10Gbit/s GPON for IPTV on show
At NXTcomm08 in Las Vegas, USA, Ericsson showed the world’s first 10Gbit/s Gigabit Passive Optical Network (GPON) system for IPTV, which offers four times the bandwidth of existing GPON systems. Ericsson also introduced the eight-port GPON board as the latest addition to its EDA 1500 GPON system, effectively doubling its capacity and improving cost-effectiveness ( Press release).
New smart Ethernet switch
Redback Networks, an Ericsson company, launched the SM 480 smart Ethernet switch, which will help operators unify their fixed and mobile networks ( Press release).
T-Mobile and Ericsson in four-year strategic partnership
Mobile operator T-Mobile Netherlands agreed a four-year strategic partnership with Ericsson to continue to manage end-to-end network operations for the former Orange network ( Press release).
Telefónica selects Ericsson to maintain new Brazilian fiber network
Telefónica signed a managed services contract with Ericsson to maintain its new fiber network in São Paulo state, Brazil ( Press release).
Telcel awards Ericsson nationwide managed services contract
Mexican mobile operator Telcel selected Ericsson to provide field maintenance services for more than 3,800 new sites in its GSM, TDMA and transmission networks ( Press release).
Ericsson divests shares in Symbian
Ericsson accepted Nokia's cash offer for its 15.6 per cent stake in Symbian Limited (Press release).
Johan Wibergh appointed head of business unit Networks
Ericsson appointed Johan Wibergh senior vice president and head of Business Unit Networks, effective July 1, 2008 (Press release).
Ericsson and Apollo Hospitals bring healthcare access to rural India
Apollo Telemedicine Networking Foundation (ATNF), part of India’s Apollo Hospitals Group, and Ericsson have taken a major step toward helping bridge the digital divide in rural India by laying the foundation for the introduction of mobile health services. Telemedicine delivered using HSPA technology will enable the provision of affordable and accessible healthcare to millions of people in remote areas (Press release).
Ericsson finalizes 1:5 reverse share split
Telefonaktiebolaget LM Ericsson’s AGM on April 9, 2008 agreed a 1:5 reverse split of the company's shares, consolidating five shares of series A and five shares of series B into one share of series A and one share of series B, respectively (Press release).
New Silicon Valley research facility
Ericsson is to open a new research facility in San Jose, California, USA. Jan Uddenfeldt, Ericsson senior vice president and senior technology adviser to the CEO, will move to Silicon Valley to oversee the new facility (Press release).
Full-Service Broadband architecture
Full-Service Broadband architecture offers users convenient access to any broadband service, from any device, anywhere – while providing operators with new cost-effective growth opportunities and lower cost of ownership, based on open-standard solutions (White paper).
Full-Service Broadband with GPON
Gigabit Passive Optical Network (GPON) technology plays a key role in delivering high bandwidth to residential customers and network nodes with high capacity requirements. It will be a key enabler for a wide range of services to any type of user (White paper).
For the latest Ericsson white papers, please click here
The latest issue of Ericsson Business Review, Ericsson’s thought-leading magazine on business strategies in telecoms, examines the growing attitude that everything on the Net should be free and the implications of this for telecom operators. To view the latest issue and to subscribe, please click here.
Industry events
July 30
Light Reading webinar – Making 40G transport a reality
http://www.lightreading.com/webinar.asp?doc_id=28780 Speaker: Richard Dorward, Photonics Product Strategy Director, Broadband Networks
This 60-minute webinar will be available in the archive for 12 months.
August 19–21
Intel Developer Forum
Moscone Center West, San Francisco, USA
http://www.intel.com/idf/us/fall2008/highlights/index.htm?iid+idf+MarqeeNav+Subnav+ForumHighlights+Overview
September 8–11
Q3 DSL Forum Quarterly Meeting
Quality Hotel Globe, Stockholm, Sweden
http://www.dslforum.org/mevents/quarterlymtgs.shtml
September 10–12
CTIA Wireless IT and Entertainment 2008
Moscone Center West, San Francisco, USA
http://www.ctia.org/conventions_events/wirelessIT/
September 10 (New Delhi) & 12 (Mumbai)
‘Broadband India’ Light Reading Live roadshow
http://www.broadbandindia2.com The future of wireless broadband
Panelist: TBC
The future of wireline broadband access
Panelist: Martin Mellor, Head of Broadband Access Product Line
September 10–16
IBC
RAI Center, Amsterdam, The Netherlands
http://www.ibc.org/cgi-bin/displaypage.cgi?pageref=100
September 16–19
Mobile Broadband World
Hilton, Amsterdam, The Netherlands
http://www.iir-events.com/IIR-conf/Telecoms/EventView.aspx?EventID=1492 Keynote: HSPA evolution for mobile broadband
Speaker: Magnus Ewerbring, Head of WCDMA RAN
Panel session: Identifying the main challenges for operators of mobile broadband deployment
Panelist: Magnus Ewerbring, Head of WCDMA RAN
September 21–25
ECOC 2008
Brussels Expo, Belgium
http://www.ecoc2008.org/homepage.asp September 23
Multi-layer IP backbone design with neighbor count limitation to reduce control load
Speaker: Jan Spaeth, Head of Advanced Networks, Product Line Optical
September 22–26
Carrier Ethernet World Congress
MARITIM proArte Hotel, Berlin, Germany
http://www.iir-events.com/IIR-conf/Telecoms/EventView.aspx?EventID=1369 Specifying packet-OTN and effectively integrating Ethernet – meeting the demand for low-cost high-capacity packet transport
Panelist: Alfredo Viglienzoni, Head of Optical Product Line
Developing an attractive wholesale CE backhaul product for mobile operators
Speaker: Jonathan Olsson, Standardization Coordinator
Making appropriate technology choices and assessing the total cost of ownership when building a shared-bandwidth Carrier Ethernet-based packet transport infrastructure
Panelist: TBC
Highlighting recent developments in packet transport standards
Speaker: TBC
September 23
Backhaul Strategies for Mobile Operators USA
New York Ethernet alternatives to T1s at the cell site
Panelist: TBC
Managing new traffic volumes and new traffic types in the backhaul network
Panelist: TBC
September 29–October 2
Broadband World Forum – Europe
Brussels Expo, Brussels, Belgium
http://www.iec.org/events/2008/bbwf/ September 30
Keynote address
Speaker: Carl-Henric Svanberg, President and Chief Executive Officer
Enhancing a broadband-enabled economy
Moderator: Torbjörn Nilsson, Senior Advisor to CEO and Ericsson Group
September 29–October 2
Converged messaging
Holiday Inn, Munich, Germany
http://www.iir-events.com/IIR-conf/Telecoms/DocumentView.aspx?EventID=1707 September 30
Session: Converged messaging delivery
Chairman: TBC
Overcoming the challenges of delivering integration and interconnectivity in a converged messaging environment
Speaker: Chris Horn, Strategic Business Development Manager
September 29–October 2
Telecoms Market Forecasting
NH Danube, Vienna, Austria
http://www.iir-events.com/IIR-conf/Telecoms/DocumentView.aspx?EventID=1719 Developing an optimal strategy for short and long term forecasting
Speaker: Svante Bergqvist, Senior Market Analyst
October 6–7
Optical Expo
The Westin Galleria, Dallas, USA
http://www.lightreading.com/live/event_information.asp?survey_id=403 October 6
Network architectures for packet optical transport
Panelist: Alfredo Viglienzoni, Head of Optical Product Line
October 26–29
Transport Networks for Mobile Operators Middle East
Crowne Plaza Hotel, Dubai
http://www.iir-events.com/IIR-conf/Telecoms/DocumentView.aspx?EventID=1633&FileType=Acrobat October 28
Examining the evolution options for a predominantly microwave network migration
Speaker: Hans Mähler, Portfolio Strategy Manager
Panel discussion: Considering the evolution of packet
Panelist: Hans Mähler, Portfolio Strategy Manager
November 17–21
Transport Network Strategies
Rey Juan Carlos, Barcelona, Spain
http://www.iir-events.com/IIR-conf/Telecoms/EventView.aspx?EventID=1673
Ericsson events & telebriefings
There presently are no scheduled events.
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 and further information If you would like further information about any stories in this newsletter, or to arrange a briefing, please send an e-mail to industry.analysts@ericsson.com.
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 October 24 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
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