Ericsson Worldwide

WiMAX - Worldwide interoperability for Microwave Access - provides the basis for standardized, interoperable broadband wireless access. The challenge now is to introduce and position WiMAX technology in a multi-access wireless world in a way that makes best use of its performance characteristics and available radio spectrum.

With the IEEE 802.16 open standard as its basis, the WiMAX Forum is working to secure interoperability and certification of WiMAX to enable a widely accepted standard for broadband wireless access in what is currently a fragmented market.

In June 2004, IEEE 802.16-2004 was approved, replacing all previous versions of the standard. This standard is intended to offer a DSL-type connection for stationary usage. Portability is only catered for in the same sense as for DSL: it will be possible to move end-user devices such as modem units and antennas from one fixed location to another. The next version of WiMAX, 802.16e, will support a greater degree of portability for terminals such as PCMCIA cards and, eventually, laptops and PDAs with built-in WiMAX connectivity.

One key point is that WiMAX 802.16-2004 (which includes 802.16d) and 802.16e are incompatible, and 802.16-2004 hardware will most likely need to be replaced if support for portability is required in the future.

The two most likely applications for WiMAX 802.16 are fixed and portable wireless access, and transport. There is very little scope, given the standardization and spectrum availability issues, for WiMAX to deliver fully mobile solutions.

Currently only a small proportion of the world's potential broadband users have access to a broadband connection, because of technical limitations (the copper line is too long or of insufficient quality for DSL, or simply non-existent) and the lack of cost-effective solutions for smaller sites.

WiMAX has good potential as a 'wireless DSL' service to meet demand for high-speed Internet in such situations, especially in developing markets. WiMAX gives operators more flexibility in siting base stations for wireless DSL services than they have with current DSL Access Multiplexers (DSLAMs), which must be collocated with the local exchange. With line-of-sight (LOS) and near-LOS conditions, WiMAX can also operate over much greater distances than copper-based DSL.

Another promising application for WiMAX is wide-area BWA networks for portable Internet access services. Nomadic users with a suitably equipped laptop or high-end PDA would be able to access services from any geographical location within appropriate frequency coverage. Such a BWA network could complement other wide-area networks in a multi-access environment - for example, complementing WCDMA/CDMA2000 coverage or working in conjunction with WiFi hotspots. The 802.16e version of WiMAX which offers limited mobility and is a feasible complement for fixed operators without 3G spectrum to be able to offer wireless broadband access.

WiMAX might also be suitable as a transport technology for IP/Ethernet traffic, if enough spectrum is available. This could be to transport the data component of mobile networks, to backhaul traffic from multiple WiFi hotspots, and to provide 'self-backhaul' of WiMAX access networks.

While WiMAX provides a good wireless complement to fixed - and perhaps mobile - broadband access, it seems doubtful that it will ever succeed as a mobile standard. Time-to-market and total cost of ownership are the key factors that limit WiMAX's ability to compete with existing mobile standards. With WCDMA, HSDPA and soon HSUPA fully standardized and available, it will be difficult for WiMAX to achieve the necessary uptake to provide the economies of scale needed for mobile devices. 3G PCMCIA cards have long been available, and computer makers like Dell are already planning to integrate HSDPA into their laptops. As yet, there are still no certified products on the market for the current 802.16-2004 version of WiMAX, let alone any specifications for mobile cellular operation.

Furthermore, the spectrum issue is not yet resolved, and for WiMAX to reach any significant uptake, it ought to operate in licensed spectrum. Operators' ability to deploy WiMAX for fixed, portable or mobile services will also depend on the conditions of their spectrum licence.

The demand for WiMAX and the future size of the WiMAX market depend crucially on price and time-to-market. Independent of access technology, Ericsson sees its role as making multi-access wireless networks work end-to-end, from the core all the way into the terminal. We are receiving many requests from operators to deliver broadband access solutions, and to secure the system integration and ensure wireless access networks interwork successfully with the existing network - independent of access technology or vendor.

Perhaps the most important success factor for WiMAX is identifying the service 'sweet-spot' - which is somewhere between today's fixed DSL and 3G mobile offerings. Trying to position WiMAX as another full-fledged mobile offering could force it down a 'too little too late' cul de sac. What's important is to understand the relative commercial strengths of different technologies, and to recognize when they are more complementary than competing.

Ericsson is preparing a new white paper on the subject of WiMAX, due to be published during the fourth quarter of 2005. Check here to view the white paper when it's ready.

Mobile devices

A significant milestone was passed when Ericsson announced that more than 10 million of the world's WCDMA handsets are now based on Ericsson technology (Press release). Other significant announcements made by Ericsson Mobile Platforms during the third quarter included:

a collaboration with BenQ Mobile to lead the specification development in the Java Community Process (JCP) to define IMS services for Java-enabled handsets (Press release)
a licence agreement with NEC Corporation for the U250 WCDMA/GPRS platform. NEC selected the U250 following its launch of the first i-mode based WCDMA phone in Europe, based on Ericsson's previous-generation U100 platform (Press release).

Mobile networks

Full steam ahead for HSDPA

Operators around the world are racing ahead with the deployment of HSDPA (High Speed Downlink Packet Access) so that they can offer their subscribers mobile triple play services - a combination of mobile telephony, mobile broadband and mobile TV services.

There is growing user demand for mobile content and the handset has an increasing role as a media channel. At the same time, operators are looking for new revenue sources and media companies need new distribution channels. These drivers are paving the way for faster deployment of 3G and HSDPA to unlock new revenue streams.

HSDPA is a mainly software-based enhancement to WCDMA 3G networks that will ultimately provide download speeds of up to 14Mbit/s. It also makes the response time for interactive services faster and more than doubles the system capacity within existing radio spectrum available to operators. Initially, Ericsson expects HSDPA to offer users average throughputs of 400-700kbit/s, with bursts of over 1Mbit/s.

HSDPA-related announcements made by Ericsson during the third quarter include:

the successful upgrade of Cingular Wireless's WCDMA infrastructure to HSDPA in the Dallas/Fort Worth area of Texas, USA - making it the first operator in the world to offer services over a commercial HSDPA network (Press release)
a contract with major Israeli operator Partner to expand and upgrade its WCDMA network to HSDPA. The upgrade will commence this year, and will enable Partner to offer mobile triple play services (Press release)
the selection by Malaysian operator Maxis to expand it WCDMA network and upgrade it to HSDPA. The contract also includes an extension of the managed services contract between Maxis and Ericsson, under which Ericsson is responsible for the entire operation and management of the 3G radio network (Press release)
an exclusive contract with Israel's largest mobile operator Cellcom to supply its WCDMA/HSDPA network. The extended network will enable the expansion of 3G services for Cellcom's customers and will be deployed in stages, commencing this year (Press release).

GSM going to sea

SeaMobile Inc. and Ericsson are to work together under a new three-year deal to provide wireless voice and data services at sea. Ericsson is to supply a complete wireless network, including hosted core infrastructure, GSM radio equipment and network monitoring and roll-out services. Radio base stations are placed on board ships or offshore platforms, and communication will be made via satellite links to the onshore hosted core network (Press release).

Al Madar expands with mobile softswitch

Libya's largest mobile operator Al Madar is to quadruple its GSM network capacity and coverage using Ericsson's Mobile Softswitch solution. As part of a turnkey core network solution, Ericsson will also provide a radio network, charging system and GPRS capability (Press release).

Avea goes for growth in Turkey

Turkey's youngest mobile operator Avea has chosen Ericsson to expand the coverage and traffic capacity of its GSM radio and core networks to meet growing subscriber demand (Press release).

Rogers Wireless customers first to get auto configuration

Canada's largest mobile operator Rogers Wireless has selected Ericsson's new Automatic Device Configuration (ADC) solution to offer its customers faster, simpler activation and configuration of mobile handsets and services. The operator is the first in the world to implement ADC, which can automatically detect, configure, activate and update services and features when users activate or change their handsets (Press release). Ericsson is the first to offer a network-based solution of this kind, which enables operators to take an active approach to marketing and targeting new voice, data and video services (Press release).

BASE to gain EDGE

Belgian GSM operator BASE, a subsidiary of KPN Mobile, is to implement EDGE (Enhanced Data rates for Global Evolution) across its network under an exclusive turnkey contract with Ericsson. With EDGE in place, BASE's customers will get seamless access to new advanced broadband services throughout Belgium (Press release).

Guangxi Mobile expands with Ericsson

Chinese mobile operator Guangxi Mobile Communications Company Limited has signed a frame agreement with Ericsson for its Phase 10 GSM Expansion programme to expand the coverage and capacity of its networks. Nanjing Ericsson Panda Communications Company Ltd, Ericsson's largest joint venture in China, will supply the equipment under the agreement (Press release).

First IMS hand-over between 3G and WLAN

Ericsson and BB Mobile, a Softbank Group company, have demonstrated the first seamless hand-over of circuit-switched voice and IMS-based video services between 3G mobile and wireless LAN networks. The live demonstration was performed over Softbank BB's commercial WLAN network and BB Mobile's WCDMA 3G network operating in the 1.7GHz band in Japan (Press release).

Fixed networks

Enabling high-performance broadband

Competition is changing the broadband service market from being mainly a high-speed, best-effort Internet play to a market that offers multiple broadband services in packages that differ according to the capabilities of the network. Initial triple play offerings combine on high-speed Internet, telephony and broadcast TV.

Broadly speaking, the broadband market can be divided into three different categories: households that already have broadband; households in areas without broadband coverage; and households that are covered but not yet connected. Any major broadband player needs to address all three segments simultaneously with a network strategy that can provide scalability, performance and low OPEX.

The first step in evolution to high-performance broadband involves bundling three existing services, so that users benefit from savings and operators benefit from a reduction in churn.

The second step is about service innovation - for example, enhancing data services with premium speeds (upstream as well as downstream), new features for VPNs and security, incorporating data, presence, picture and video elements into voice-based communication services, and evolving TV services for on-demand consumption of entertainment on any TV in the home.

Triple play goes beyond simply combining three basic services, and operators need to ensure they build a customer base in the first step with a network that is designed to support the second step, and beyond.

There were a number of significant announcements relating to Ericsson's broadband solutions during the third quarter:

Australian operator Commander Communications selected Ericsson's IMS solution to enable its Ericsson core network to access DSLAM connectivity and enable the deployment of network-hosted multimedia services in its IP network (Press release)
Sweden's second-largest broadband provider B2 (Bredbandsbolaget) chose Ericsson to provide VDSL2 technology to deliver triple play services - Internet, IP telephony and IPTV - over a high-performance broadband architecture based on IP/Ethernet. VDSL2 allows for simplified end-to-end Ethernet architecture (Press release)
Greek operator Vivodi Telecom selected Ericsson to build an advanced broadband access network for triple-play services. Ericsson will deliver 10,000 ADSL2+ lines to Vivodi Telecom using its Ethernet DSL Access solution (Press release)
Ericsson' gained shareholder acceptance for its offer to acquire Axxessit, the Norwegian supplier of integrated access devices and multi-service provisioning platforms for next-generation access and metro networks (Press release).

Telecom services

EMI Music signs up to hosted ringback tone service

US phone users will be able to play people calling their number music of their choice while they are 'hanging on the telephone', following an agreement between Ericsson and EMI Music North America. The deal means callers to subscribers' mobile, landline and VoIP phones will hear music from EMI's prestigious catalogue of recorded music rather then the traditional 'ring ring' as they wait for their calls to be answered. Ericsson's hosted ringback service will provide preapproved US operators with music content from EMI recording artists such as Blondie, the Rolling Stones, Coldplay, Pink Floyd and Norah Jones (Press release).

Sonaecom signs five-year managed services deal

Portuguese telecom group Sonaecom has signed a five-year managed services contract with Ericsson that covers field operations for the multi-vendor infrastructure networks of Optimus and Novis, the mobile and fixed brands of Sonaecom. (Press release).

BASE signs up Ericsson for seven years

Belgian mobile operator BASE, a subsidiary of KPN Mobile, has signed a managed services deal with Ericsson, under which Ericsson will be responsible for the day-to-day operation and maintenance of the operator's network for a period of seven years (Press release).

Managed services update

As at October 2005, Ericsson has signed 54 managed services contracts, and is now managing networks that cover more than 47 million subscribers globally.

Enterprise communications

EMO chosen by over 30 operators

Since the start of 2005, Ericsson has signed more than 30 contracts for Ericsson Mobile Organizer (EMO) with operators targeting enterprise users with mobile voice and data services. Together, these operators serve more than 100 million subscribers.

New ‘push’ PIM facilities for smartphone users

The new version of Ericsson Mobile Organizer (EMO) offers smartphone users secure 'push' access to all their Personal Information Management (PIM) applications - e-mail, calendar and meeting requests - without any need for proprietary hardware, special devices or operator tie-ins (Press release).

Global Crossing chooses Ericsson for IP telephony

Global Crossing has chosen Ericsson to provide an upgraded IP telephony platform for its UK RailNet network - one of Europe's largest private networks. The Ericsson solution will enable advanced IP telephony services for RailNet's 65,000 users across the UK rail operating community (Press release).

Corporate news

Ericsson continues solid performance

Ericsson has reported another quarter of strong performance, reporting net sales of SEK36.2 billion for the second quarter (up 14 per cent on the same period last year) and net income of SEK5.3 billion (compared with SEK4.3 billion a year earlier) (Press release).

Hit models boost Sony Ericsson

Sony Ericsson has reported solid growth and market share gain for the third quarter of 2005. The company shipped 13.8 million units during the quarter - 29 per cent higher than in the same quarter last year, and 17 per cent higher sequentially - and generated sales of 2,055 million euros, a year-on-year increase of 22 per cent (Press release).

Ericsson acquires Teleca OSS

Ericsson has acquired Swedish telecom management systems integration specialist Teleca OSS as part of its strategy to expand its services business. Teleca OSS has a strong track record of providing service assurance, network management and operator charging solutions (Press release).

Latest white papers

New 'Communication for All' white paper

Ericsson has published a new white paper on the subject of Communication for All. It outlines the company's vision of delivering communications services to all who want them through the spread of GSM and achieving sustainable business by addressing issues such as taxation, business models, affordable phones and operators' total cost of ownership (White paper).

For the latest Ericsson white papers, please click here.

Events

Industry events

14-18 November 2005
3GSM World Congress, Hong Kong

Wednesday, 16 November, 2-6pm
Topic: Keynote address: vision for the development of the mobile and wireless industry
Speaker: Carl-Henric Svanberg, President & Chief Executive Officer

Ericsson will be hosting a number of activities specifically for industry analysts at 3GSM World Congress. If you would like to know more, please contact Pia Långström on +46 70 267 1905 or e-mail industry.analysts@ericsson.com

29-30 November 2005
Strategic Information Management, Vienna, Austria
Go to website

Tuesday, 29 November, 10:15am
Topic: Enhancing telecom management
Speaker: Magnus Ekhed, Strategic Solution Manager, Ericsson AB

6-7 December 2005
MVNO Summit, Miami, USA
Go to website

Tuesday, 6 December, 11:05am
Topic: Content generation and management for your wireless offering
Speaker: Eric Anderson, VP, MVNO business development

Ericsson events

10 November 2005
Management briefing, New York
W Hotel, Floor 1, 541 Lexington Avenue, at 49th Street, New York, NY, 10022
For additional details and an invitation please click here.

Telebriefings (preliminary calendar):

14 December 2005, Service delivery
Date TBC, Transmission and Competing and complementing technologies

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 31 January, 2006. For further details regarding the quarterly reports, please check here.

If you would like further information about any of the stories above or would like to arrange a briefing, please send an e-mail to industry.analysts@ericsson.com or contact Eva Sparr, Rob Elston for North America, or Pia Långström for Asia Pacific or Pia Sörensen for Europe and the Middle East.

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