Ericsson Worldwide

IP Multimedia Subsystem (IMS) enables delivery of enhanced multimedia services to consumers irrespective of the access technology they are currently using. This technology creates benefits such as increased ease of use and "transparency" for the customer as well as a reduction in network management and software licensing costs of the operator. But what IMS will mean for service offerings by mobile and fixed operators was the subject of a recent whitepaper from Ericsson (http://www.ericsson.com/products/white_papers.shtml).

Currently, telecommunications networks are vertically integrated with services closely tied to delivery channels i.e. several almost identical applications exist for each carrier technology (fixed, broadband, GSM, CDMA, WCDMA etc). What is required, and increasingly customer demand-driven, are more horizontal structures that can host an application over any underlying network technology.

Increasingly customers want seamless delivery of telephony services and include text, pictures, video and voice in any combination across various devices. The IP Multimedia Subsystem (IMS) uses IP-based technology to create a common foundation for the deployment of services across all access domains. In other words, IMS converges communications technologies and creates horizontal mechanisms that provide a flexible, adaptable standards-based environment with which to implement new services on any system.

Inherent to IMS architecture is the multi-access functionality for fixed, wireless and mobile broadband. When this capability is extended with access-aware control and service logic for multimedia services IMS becomes a viable launch pad for mobile operators to offer true fixed-mobile convergence. IMS essentially provides operators with the ability to adopt the service to the current device irrespective of network access method.

The benefits are not just an improvement of service offering for the consumer but also an improvement in quality of service. The push towards greater bandwidth for the delivery of services will only take the service offering so far. However, IP-based platforms allow a guaranteed level of service and pre-allocate the bandwidth required to stream a service to the user over any access channel.

Service enablers, a key element of IMS, allow one application to be run all the access networks and create greater application simplicity for the network. For the customer the transparent delivery of services is huge benefit. A basic example would be to enable customers to access their PC's address book and calendar on their mobile phone eradicating the need for address book and calendar duplication. It would also allow the customer to change their calendar settings e.g. change meeting times, forward their calls to their current location or alter their online status etc.

The telecom grade IMS solution developed by Ericsson is based in the principle of service evolution rather than technology revolution where IMS is the key component in the future development and evolution of IP-services for both wireline and wireless operators allowing services to be leveraged from any domain. To learn more about Ericsson's view on IMS, listen to the industry analyst IMS telebriefing from October 27th available on http://www.ericsson.com/ericsson/industryanalysts/. If you do not have access, please register by sending an email to industry.analysts@ericsson.com.

For more information about IMS, mobile multimedia and IMS-solutions that support mobility management, authentication, policy management, regulatory functionality and billing support already developed etc. please refer to the new IMS whitepaper: http://www.ericsson.com/products/white_papers.shtml, IMS Press backgrounder: http://www.ericsson.com/press/facts_figures/index.shtml, the Mobile Multimedia whitepaper:
http://www.ericsson.com/products/white_papers.shtml or the IP Multimedia Subsystem Overview and Applications from the 3G America in July: http://www.3gamericas.org/pdfs/ims_july2004.pdf

Focus on India

India - A Booming Market

India is one of the most rapidly growing mobile telephony markets. Mobile phone users have already outstripped traditional landline connections in India. Each month 1.8 million new mobile consumers are added to the network and this figure doesn't seem to be abating, in fact, between June and August GSM mobile subscriptions increased by 25% to over 32 million. MTNL envisage that by December 2005 1 million broadband customers will be using the network in Mumbai alone (http://www.ericsson.com/press/20041020-140542.html). It is estimated that by 2009 India will have passed 200 million mobile subscribers and is expected to become the second largest market in the world.

Ericsson - Committed Long-Term Partner for India

In September, Ericsson's President and CEO Carl-Henric Svanberg hosted the Ericsson Strategy and Technology Summit in New Delhi, India (http://www.ericsson.com/press/events/2004/index.shtml). It was an opportunity to discuss the communications landscape and demonstrate how Ericsson is breaking new ground and driving technology development, telecom services, business update and developing future strategies.

As early as 1903, Ericsson’s relationship with India has been strong. Ericsson implemented India’s original manual switchboard and since that time Ericsson has contributed in all areas of the telecommunications. Today, Ericsson is the market telecommunications supply leaders in the Indian with 75% of all international phone-calls are handled through Ericsson switching systems and have installed 1.3 million fixed lines on BSNL and NTNL Networks. Ericsson has won 60% of all the recent wireless infrastructure orders stemming the issue of third and fourth cellular licenses as well as supporting mobile services in circles of Delhi, Mumbai, Chennai, Uttar Pradesh, Himachal Pradesh, Haryana, Punjab Jammu & Kasmir, Tamil Nadu, Andhra Pradesh, Karnataka, Kerela, Maharashtra, Gujarat, Rajasthan, Madhya Pradesh, West Bengal, Bihar, Assam, Orrisa, the North East and Andaman & Nicobar Islands.

Ericsson is expanding manufacturing activities and is the first multinational company to manufacture radio base stations in India. To foster the growth and development of mobile services in India, Ericsson has set-up an Ericsson Mobility World Centre in Gurgaon. Ericsson has also established India's first Voice over IP (VoIP) network in a six city pilot project for BSNL.

Providing Coverage for Nearly Half the Population of India

Ericsson has signed a contract with Dishnet Wireless Limited in India to deploy a complete turnkey GSM/GPRS/EDGE network infrastructure and equipment for the northern and eastern circles in India (http://www.ericsson.com/press/20041021-114115.html). The circles account for nearly half of India's population and will be roll out infrastructure and services for GSM/GPRS/EDGE, Unified Messaging System, MMS, and Intelligent Network over a period of two years.

The agreement will extend coverage to semi-urban and rural areas of the country and the current tele-density of 1.4% from these circles provides great potential for the future and will drive the GSM growth.

More recently, Ericsson was selected to supply broadband access network by Mahanagar Telephone Nigam Limited (MTNL), to Delhi and Mumbai, the country's two largest metropolitan areas. MTNL plans to launch the services by the end of this year, offering broadcast TV, video on demand and high-speed Internet, which is a key advantage for MTNL in securing their ability to compete in terms of price, and high capacity service offerings.

India is the high growth market to watch in the coming years and as it grows Ericsson will meet the challenges of the second largest market with one of the fastest growing mobile bases in the world.

Communications Networks

MOBILE COMMUNICATIONS

ERICSSON EXPANDS ON STRONG CUSTOMER RELATIONSHIPS
Throughout the third quarter Ericsson was awarded several contracts to expand the capabilities of existing GSM networks in preparation for third generation migration. In China, Ericsson was awarded a USD 150 million GSM network expansion contract by Shandong Mobile Communication Company (Shandong Mobile) (http://www.ericsson.com/press/20040913-115442.html) to upgrade the capacity and service quality of their GSM network with the delivery and roll-out of the latest AXE810 switching platform by December 2004, to reach a total capacity of 18 million users. Chongqing Mobile awarded Ericsson a GSM expansion contract worth USD 27 million (http://www.ericsson.com/press/20040805-094132.html) to deliver EDGE capabilities and supply complete network solutions including telecom services and the upgrading of the Operation Support System (OSS).

In Russia, another GSM network expansion agreement worth USD 70 million awarded to by MTS, Mobile TeleSystems (http://www.ericsson.com/press/20040927-093140.html). The delivery of the AXE810 switching platform and the GSM base with built-in EDGE functionality for future activation in Russia will increase network capacity and coverage in the Krasnodar region, Tatarstan, Bashkortostan, Siberia (Novosibirsk and Tomsk regions, as well as in Irkutsk), and on the Far East (in Vladivistok and Yuzhno-Sakhalinsk).

TELIASONERA APPOINTS DANISH SOLE SUPPLIER CONTRACT TO ERICSSON
TeliaSonera has selected Ericsson as sole supplier for its future-proof GSM and WCDMA network(http://www.ericsson.com/press/20041011-132705.html). Ericsson will deliver GSM, GPRS, EDGE and WCDMA equipment, network rollout and related services to TeliaSonera. TeliaSonera is now the second largest mobile operator in Denmark after the recent acquisition of Orange Mobile Operations in Denmark.

US EXPANDS 3G WIRELESS COVERAGE<BR> At the beginning of September AT&T Wireless announced the launch of UMTS services in Dallas and San Diego with radio access equipment network design and optimization services provided by Ericsson (http://www.ericsson.com/press/20040901-1505.html). Customers in these regions will have increased network with DSL-like speeds, with an average data speed of 220-320 Kbps plus sophisticated security systems for web-based data files and "chatty" client/server applications, corporate networks/Intranets and the Internet. Other UMTS networks in the US include the greater metro areas of Seattle, Detroit, Phoenix and the San Francisco Bay Area. T-Mobile USA Inc. also extended an existing agreement to include GPRS and EDGE equipment for the introduction of data services, (http://www.ericsson.com/press/20041112-163138.html). Effectively this will expand and upgrade the network quality and capacity, Ericsson will provide the GSM 1900 MHz wireless network equipment and network deployment, system integration and support services in 18 strategic US markets including, Atlanta, Boston, Miami, New Jersey, Philadelphia and Washington D.C. where Ericsson equipment is already installed.

CDMA2000 EXPANDING COMMERCIAL OPTIONS
Ericsson conducted an Ericsson's Expander Solution 450 MHz trial in Talgar, Kazakhstan (http://www.ericsson.com/press/20041109-090106.html) utilizing its commercially available 450 MHz solution that support all future evolutions of CDMA2000 the opens up future commercial opportunities for this fast growing market.

In India TATA Teleservices signed a CDMA 2000 expansion contract to deploy its AXE-based MSCs throughout 12 new circles in TTSL's CDMA2000 1X network in India (http://www.ericsson.com/press/20041102-100113.html). Ericsson previously supplied its end-to-end CDMA2000 1X network solution in the Tamil Nadu and Karnataka circles, as well as core network equipment in four other TTSL circles, effectively integrating Ericsson solutions throughout TTSL's nationwide network.

EDGE UPDATE - GAINING AN EDGE ON THE GLOBAL MARKET
Faroese Telecom selected Ericsson as sole supplier for its GSM network upgrade to EDGE and GPRS (http://www.ericsson.com/press/20040830-120155.html). Under the agreement, Ericsson will deliver a complete solution for EDGE and GPRS including all hardware and software, an overall management system, support and implementation.

In Jordon, Mobilcom has chosen Ericsson to deliver a full commercial EDGE system in Jordan (http://www.ericsson.com/press/20040804-100138.html). The contract includes an upgrade of their existing GPRS network to enhance data transmission speed and allow the launch of new consumer services and high-speed data access to the entire subscriber base.

Further a field, Ericsson won the primary supplier contract, from DiGi Telecommunications Sdn Bhd (DiGi) to upgrade and expand their nationwide GSM/GPRS network with EDGE, and will include the supply of EDGE enabled equipment as well as modernization the core and radio network (http://www.ericsson.com/press/20041104-102119.html).

6,000 ACCESS POINTS AND THE CLOUD IS STILL GROWING
A major milestone was reached for Europe's largest and fastest growing public access Wi-Fi network, as the Cloud (http://www.ericsson.com/press/20040921-133454.html) reached over 6,000-access points supplied by Ericsson. This effectively extends the roaming hub to more public locations around UK and offers national wireless LAN coverage with more than 4,300 hotspot locations and is opening more than 100 new locations each week in the UK. The Cloud operates a multi service-provider Wi-Fi platform that allows providers such as ISPs, mobile operators and cable companies to offer a fully branded wireless LAN experience to their customers.

BROADBAND AND MULTI-SERVICE NETWORKS

MCI GOES IP
MCIs has decided to use the Ericsson Engine platform
(http://www.ericsson.com/press/20040818-130135.html) to accelerate its migration of international voice traffic to an all IP backbone (VoIP) and provide a more flexible and cost effective provision of customer services. The decision marks a key step in MCI's convergence networking strategy and will enable the company to transport voice traffic worldwide on its IP backbone as well as expand its network functionality and offer next generation services on a global basis.

ANOTHER FIRST FOR NEW MULTI-SERVICE NETWORKS IN EGYPT
Telecom Egypt and Ericsson have signed a contract for the supply of a multi-service network in Egypt in the region of Alexandria (http://www.ericsson.com/press/20040914-100117.html) and extends on previous telephony contracts in the region (http://www.ericsson.com/press/archive/2002Q1/20020225-075641.html). The new network will provide both traditional narrowband services including wireline and broadband services with the multi-service network's soft switch technology for fast Internet communications for both private and corporate subscribers.

BROADBAND CONTRACTS CREATE GLOBAL DSL OPPORTUNITIES
In response to increasing broadband market in Denmark, B2 selected Ericsson's Ethernet DSL Access solution for their on-going nationwide roll-out of ADSL2plus based services for the delivery services to residential and business users (http://www.ericsson.com/press/20040906-110123.html). The solution has makes it easy to integrate B2s existing network for maximum delivery of imaging, TV, video, music services to customers. Ericsson has signed an agreement with Brazil Telecom, Brazil, to expand their broadband access offering based on Ericsson's Ethernet DSL Access solution (http://www.ericsson.com/press/20041110-140137.html) in the region of Brasília, Paraná, Santa Catarina and Rio Grande do Sul. The contract covers a complete solution including central office and customer premises equipment. And in Indonesia, PT Telekomunikasi , awarded Ericsson the contract to deliver Public Ethernet broadband access solution, called Speedy that will allow triple play services such as data, voice and video simultaneously to their customers in Surabaya, East Java (http://www.ericsson.com/press/20041110-140110.html).

DEMONSTRATING ADVANCED BROADBAND SOLUTIONS
During the Broadband World Forum, Venice, September 20-23 (http://www.ericsson.com/press/20040921-133612.html), Torbjörn Nilsson, Senior Vice President of Ericsson presented the coming customer driven trends and broadband solutions for the delivery of triple play services, voice, video and data and demonstrated four network solutions described in the recently release whitepaper on multimedia driven telephony convergence (http://www.ericsson.com/products/white_papers.shtml.)

Telecom Services

Ericsson is the market leader in telecom services, providing unique expertise in managed services and hosting, consulting, systems integration, network deployment and integration, education and support services both locally and globally. With the continued growth of the fixed and mobile telecom sector Ericsson Global Services forged ahead in the Q3 2004 to maintain its leadership in managed services.

ERICSSON WINS WARID GSM/GPRS DESIGN, DEPLOYMENT AND INTEGRATION AGREEMENT

Warid Telecommunications Pvt. Limited (Warid Telecom) in Pakistan selected Ericsson as the supplier of the managed services agreement (http://www.ericsson.com/press/20041021-114115.html). Under the contract, Ericsson will provide turnkey network design, deployment and integration of a complete GSM/GPRS solution, including supply of core and radio network infrastructure. In providing managed services Ericsson will oversee the operation and maintenance as well as optimization of Warid's network. Phase one of the contract will cover the first roll-out for the first wave of GSM/GPRS network in 28 cities across Pakistan and is part of a nationwide roll-out of mobile network, ready for commercial launch in early 2005.

This move secures Ericsson as the managed services provider of choice in the region. Earlier in the year, Ericsson and Bharti (India) also signed a managed services and infrastructure agreement (http://www.ericsson.com/press/20040209-105114.html) that enables its network to deliver and manage network capacity when and where it is needed.

MANAGED SERVICES HOSTING BREAKS NEW GROUND

Ericsson has signed a managed services contract with Sun Cellular's video streaming services in the Philippines (http://www.ericsson.com/press/20041027-111051.html) incorporating the integration, implementation and hosting of a service that allows Sun Cellular customers to enjoy an exciting array of audio and video content on their mobile phones. And in Brazil, Brasil Telecom selected Ericsson to establish, operate and maintain their GSM Core operations (http://www.ericsson.com/press/20041111-160216.html) in the region of Rio Grande do Sul, Paraná, Santa Catarina and Brasília, and radio network in the region of Rio Grande do Sul for a five-year period and includes GSM infrastructure as well as the day-to-day management of Brasil Telecom's network.

AUDILOG STRENGTHENS ERICSSON GLOBAL SERVICES

Ericsson has acquired of the French network management systems integration company Audilog(http://www.ericsson.com/press/20040922-092735.html). The move demonstrates Ericsson's focus on expanding its services business, with the increasing complexity of telecommunications networks managed services is increasingly vital and growing in importance as a part of turn-key rollout and management solutions.

Enterprise Update - New Enterprise Solutions

MX-ONE LAUNCHED FOR FLEXIBLE EVOLUTION TO BUSINESS-CLASS MULTIMEDIA

Ericsson launched the MX-ONE™ server-based business communication system (brochure - pdf)- the all-in-one communication solution, integrating IT and telephony functionality with increased focus on mobility, giving medium-sized and large enterprises freedom of choice in their path to converged multimedia communications. MX-ONE Telephony System IP-PBX is the first product available in the Ericsson MX-ONE range (http://www.ericsson.com/enterprise/products/mxone.shtml)- and the primary building block for the new platform. This system has two components: a Telephony Server and a Media Gateway that can be easily integrated into an enterprise's existing IT infrastructure. The Telephony Server is a call processing application that operates on a Linux-based server. The telephony baseline is the same as on MD110 BC12.1. The Media Gateway is proprietary hardware that provides conversion between circuit switched (PSTN) and packet-switched (IP) networks. The one-node system supports up to 500 IP extensions, and can be networked via IP networking to other MX-ONE Telephony Systems or MD110. Each of the systems can be networked using IP networking to either another MX-ONE Telephony System or MD110 node.

Ericsson provides this smooth migration by enabling the parallel migration of IP and mobile users to a new, open standard, server based platform - while maintaining the option of retaining current `traditional´ analogue, digital or DECT handsets. MX-ONE integrates fully with existing MD110 networks, phones, applications and management systems. The focus is on investment protection, quick return on investment (ROI) and minimal total cost of ownership (TCO). For more information please visit: (http://www.ericsson.com/enterprise/products/mxone.shtml).

NEW BUSINESSPHONE SYSTEM EASIER FOR TO BUY, INSTALL, INTEGRATE AND USE

Ericsson has launched a new range of BusinessPhone solutions that make the IP-enabled business communication system easier for small and medium-sized enterprise (SME's) to purchase, install, integrate and use. "SME's can be sure that, whatever their starting point, they will have a system that meets their long-term needs with minimal total cost of ownership" says Stefan Vekeman, Sales Manager Converged Solutions. For more information regarding BusinessPhone, please refer to http://www.ericsson.com/enterprise/library/press/BP7.0_pressrelease.pdf

SOLIDUS ECARE OFFERS IP- AND MOBILITY-ENABLED ROUTE TO VIRTUAL CONTACT CENTERS

Ericsson Solidus eCare contact center solution now offers enterprises of all sizes to implement IP- and mobility-enabled virtual contact centers across multiple sites. This enables dispersed customer service organizations to behave 'as one', and helps ensure customers always get through to the most appropriate agent - wherever they are located and whichever communication medium they prefer to use."Solidus eCare 4.0 strengthens our ability to deliver solutions that offer consistent, efficient and reliable customer service across all media. Its integration of IP and mobility technologies empowers enterprises to offer the highest levels of customer service", says Staffan Svensson, Vice President, Product Management Ericsson Enterprise. For more information regarding Solidus eCare, please refer to http://www.ericsson.com/enterprise/library/press/SeC%204_0%20press%20release.pdf

Corporate News and Information

ERICSSON STRATEGY & TECHNOLOGY SUMMIT, ASIA

In September, Ericsson's President and CEO Carl-Henric Svanberg hosted the Ericsson Strategy and Technology Summit in Delhi (http://www.ericsson.com/press/events/2004/index.shtml) and Hong Kong (http://www.ericsson.com/press/events/2004/index.shtml). It was an opportunity to share Ericsson’s view on the communications landscape, how Ericsson is breaking new ground and driving technology development, the importance of telecom services, business update and forward strategies.

ERICSSON CAPITAL MARKETS DAY IN SAN DIEGO, USA

The Ericsson Group Management Team presented an industry snapshot and future market trends and illustrated how Ericsson's technology and progress in areas such as Network Convergence, IMS, and Ericsson Mobile Platforms is creating more flexible, customer-driven services (webcast: http://www.ericsson.com/press/events/2004/index.shtml).

SONY ERICSSON REPORTS SIXTH CONSECUTIVE POSITIVE QUARTERLY REPORT

Sony and Ericsson presented the financial summary for the third quarter ended September 30, 2004 of Sony Ericsson Mobile Communications AB (Sony Ericsson). Indications were positive with a net income of Euro 90 million buoyed by a 51% increase in handset sales.
For Sony Ericsson's results please go to http://www.ericsson.com/press/20041014-083110.htm

UPCOMING TELEBRIFINGS AND 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.

INDUSTRY ANALYST TELEBRIEFING
Industry analyst telebriefing: Ericsson Mobile Platforms December 8 for EMEA and Americas and December 9 for APAC. Invitations will be distributed separately. For further information, please contact Ericsson industry analyst relations at industry.analysts@ericsson.com

EVENTS
FT World Telecommunications Conf /London, UK
November 29-30, Royal Garden Hotel
Speaker: Johan Bergendahl, Vice President Marketing, Ericsson. Topic: The Value of Fixed Line Voice
Web site: www.ft.com

GSM Africas/IBC, Cape Town, South Africa
November 30 -1 December, 2004
Presentation: Ericsson as a leading player in high growth markets
Web site: www.gsmconferences.com

Push to talk (PTT) World Summit, Lisbon, Portugal
November 30 - December 2, 2004
Speaker: Niclas Medman, Senior Marketing Manager IMS, Ericsson. Topic: How to implement an IMS based solution for mass-market adoption

Ericsson Mobile Internet Forum & Mobile Applications Awards, Zurich, Switzerland
December 1-2, 2004

Push to Talk, Miami, USA, IPQC
December 8-10, 2004

Push to Talk, IIR, San Diego, USA
January 24-26, 2005
Speaker: Niclas Medman, Senior Marketing Manager IMS, Ericsson. Topic:
Standardizing PTT to Drive Mass Market Adoption: Examining specifications of current push to talk solutions and standards.
Website: www.iirusa.com

3GSM World Congress 2005
14-17 February 2005, Cannes, France
KEYNOTE SPEAKER: HÅKAN ERIKSSON
Website: http://www.3gsmworldcongress.com/2005/congress/default.asp

CTIA wireless
14-16 March, New Orleans, USA
http://www.ctiawireless.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, Asia Pacific and other locations.

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Newsletter: Q3 2004

Overview

Top Stories

ERICSSON IS GOING STRONG - healthy margin levels and strong results for Q3

ERICSSON MOBILE PLATFORMS REACHES 30 PERCENT GLOBAL MARKET SHARE IN WCDMA

MAKING MOBILE BROADBAND HAPPEN

CONTINUOUS SUCCESS FOR M-USE

Industry Viewpoint