Ericsson reported sales of SEK40.8 billion for the third quarter of 2006, 12 per cent higher than in the same quarter last year, and taking sales for the first nine months of the year to SEK124.1 billion, 17 per cent higher than a year earlier. The results were boosted by strong performance from handset joint venture Sony Ericsson, as well as continuing strong growth in sales of network roll-out and professional services, which grew 28 per cent year-on-year (Press release ).
Ericsson is implementing a more customer-oriented organization with three business units - Networks, Global Services and Multimedia - each optimized for its specific market segment.
Carl-Henric Svanberg, President and CEO, said, "We are stronger than ever and the time is right to accelerate the pace of business development and establish a market-defining role in the integration of communications and media. We will leverage our position in mobile networks, services and transmission and expand our leadership in next-generation converging IP-networks with a focus on multimedia applications and services. Multimedia is an area with obvious business opportunities and potentially a powerful driver for increasing network capacity and investments by operators."
The new organization will have an even stronger customer focus and pave the way for continuously improving efficiency in all areas. To further strengthen Ericsson's technology leadership, an additional 500 engineers will be recruited to accelerate research, especially in the area of next generation IP-networks and multimedia technology.
The new organization will take effect on 1 January 2007 (Press release).
Ericsson has announced the appointment of Jan Wäreby, currently Corporate Executive Vice President and Head of Sales and Marketing at Sony Ericsson, as Senior Vice President and head of business unit Multimedia, with effect from 1 January 2007 (Press release).
Ericsson has delivered equipment and services to upgrade Vodafone's 3G network in the UK with full HSDPA functionality to enable the operator to offer 3G broadband services to customers, initially in major urban areas (Press release).
Indian mobile operator Bharti Airtel has awarded Ericsson a network expansion and managed services contract worth approximately USD1 billion. Ericsson will upgrade Bharti's network with its Mobile Softswitch solution and manage, design and develop the network under a three-year managed services agreement (Press release).
Arima Communications Corporation has signed licence agreements for Ericsson's new U310 and U360 WCDMA/HSDPA mobile platforms. The two companies will combine Ericsson's industry-leading WCDMA/HSDPA platform technology with Arima's range of vertically integrated core technologies to design, manufacture and deliver state-of-the-art solutions (Press release).
Ericsson is the first vendor to successfully test its mobile platforms on all nine frequency standardized by 3GPP, giving its customers the most flexible platform solution on the market. Using its new U310 and U360 WCDMA/HSDPA mobile platforms, Ericsson is the first vendor to successfully complete calls using its platforms across all nine 3GPP-defined frequency bands (Press release).
As mobile operators see growing demand for mobile broadband and multimedia services, they are moving to upgrade their WCDMA networks to HSPA (High-Speed Packet Access) - the first step on the evolution path of WCDMA. It enables operators to introduce attractive new services as mobile broadband with interactive TV, mobile music, gaming, high-speed Internet connectivity, office applications and fixed wireless services.
Through convergence and increased broadband capabilities, the mobility-driven telecom world and the PC-centric world will gradually merge and the broadband Internet will become available to billions.
The market potential for mobile broadband services is growing quickly in high-growth markets where mobile coverage and penetration developed fast and where basic data services such as SMS already play a vital role. Mobile broadband is often the only way to access broadband services and the Internet in markets with limited fixed-line alternatives. Consequently, the focus on high-speed mobile networks is also increasing among operators in these markets.
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.
All WCDMA networks are expected to be upgraded to HSPA. Out of a total of 109 commercially-launched WCDMA networks, Ericsson is a supplier to 60. Ericsson is already powering 30 commercially-launched HSPA networks.
Ericsson made several HSPA-related announcements during the quarter:
The continuing growth in both subscriber numbers and traffic is driving the need for additional capacity in GSM networks around the world. Softswitch solutions enable operators to introduce high-quality services quickly and cost-efficiently, while providing a low-risk evolution of existing circuit-switched networks to a telecom-quality, IP multimedia service platform.
Ericsson softswitch solutions have been designed to enable operators to utilize network resources for next-generation services in the most cost-efficient way, while continuing to profit from classic voice services. More than 85 fixed and mobile operators worldwide have launched commercial services based on Ericsson softswitch solutions.
During the quarter, a number of mobile operators announced expansion projects that include Ericsson softswitch solutions:
Japanese mobile operator SoftBank (formerly Vodafone KK) has launched Push to Talk and Presence Group Management services - known as Circle Talk and Hot Status - based on Ericsson's IP Multimedia Subsystem (IMS) solution. Vodafone selected Ericsson as a preferred supplier of IMS solutions in February this year (Press release).
Ericsson, the GSM Association and mobile operator MTN have teamed up to establish biofuels as an alternative energy source for mobile networks in the developing world (Press release).
Mobile operator Telenor has selected Ericsson to supply a complete packet core network to enable differentiated delivery of multimedia services in Norway and Denmark. The network will provide a common platform for both 2G and 3G data traffic with flexible, service-aware charging (Press release).
Ericsson and its supplier Zooma have been awarded the Web Marketing Association's 2006 WebAward for Best Events Website for their work on Canadian mobile operator Rogers' FIFA World Cup site (Press release).
Ericsson has secured three-year, USD230 million deal with Australian operator Telstra to evolve the operator's inter-capital, regional and rural transport networks, using optical and radio transmission technologies (Press release).
Ericsson's EDA (VDSL2) High-Performance Broadband solution has been named best access technology by the International Engineering Consortium (IEC) at Broadband World Forum 2006 (Press release).
Deutsche Telekom's fixed broadband network unit T-Com and Ericsson have successfully completed the world's first trial of next-generation optical transmission technology over a 1,000km link in the operator's DWDM (Dense Wavelength Division Multiplexing) optical network in Germany (Press release). T-Com earlier chose Ericsson to provide its multi-haul DWDM technology to upgrade its metro and regional networks in Germany (Press release).
Under a separate agreement, Ericsson is also supplying T-Com with its cutting-edge EDA solution for broadband roll-out. Ericsson EDA will enable the operator to efficiently increase high-performance broadband coverage nationwide and boost data rates to 6Mbit/s (Press release).
Thailand's leading fixed-line operator TOT has selected Ericsson's EDA solution to provide high-performance broadband services to subscribers across the country. The solution will include Ericsson's IP Multi-Service Access Node (MSAN) for ADSL2+, which will enable TOT to provide its customers with ultra-high-speed broadband connections of up to 24Mbit/s (Press release).
Danish operator TDC has deployed Ericsson VDSL2 technology to deliver Triple Play services including Internet, IP Telephony and IPTV over a high-performance broadband architecture. The VDSL2 system is currently in field trials (Press release).
More complex networks, an increasing focus on business development, and a continuous focus on cost-efficiency are driving operators' demand for professional services. Ericsson has established clear market leadership, having made an early start in this field. We now provide advanced, round-the-clock support services to networks with more than 725 million subscribers, and manage networks with more than 80 million subscribers. Our strong growth is based on technology leadership, scale advantages and local presence.
Swedish television format company Bringiton AB has chosen Ericsson's Internet Payment eXchange (IPX) content billing and payment solution to provide multimedia services to the upcoming Play Us video gaming docu-drama, which features Scandinavian all-girl video gaming group Les Seules (Press release).
MTV is to use Ericsson's Internet Payment eXchange (IPX) content billing and payment solution for messaging and payment in the Baltic States to support the launch of local MTV stations in the region (Press release).
MiTV Corporation Sdn has chosen Ericsson to build, manage and maintain its WCDMA/HSPA network across Malaysia (Press release).
Mobile operator PT Telekomunikasi Selular Indonesia (Telkomsel) has selected Ericsson to provide its 3G/WCDMA core and radio network in Indonesia. Under a three-year turnkey contract, Ericsson will provide managed services to establish, operate and manage Telkomsel's network, including a seamless upgrade with additional capacity, higher data rates and enhanced user experience through HSPA (Press release).
Warid Telecom has awarded Ericsson a managed services contract for its GSM/GPRS network in Bangladesh. Ericsson will operate, manage and maintain Warid's core network, backbone transmission network, and real-time charging and Value-Added Services (VAS) solution. Ericsson will also manage the operator's radio network in the western part of the country (Press release).
Polish network operators Polkomtel, Plus and Sami Swoi have signed a three-year managed services contract with Ericsson to manage the design, development, deployment and integration of a new multi-vendor 2G/3G network in Northern and Western Poland (Press release).
The latest version of the Ericsson MX-ONE Convergence Communications System is designed to make business-class, SIP-based communications with mobility a reality for all enterprise users. Whatever their starting point, and whatever their future growth and development plans, enterprises who choose MX-ONE can be safe in the knowledge that their investment is protected as they evolve their networks to SIP-based IP communications.
MX-ONE Version 3 provides even greater cost and efficiency benefits for enterprises as they adopt converged multimedia communications solutions. As well as extending system capacity to 50,000 users, the new version also offers a range of new Web-based software tools and support for SIP-based IP communications (Further information).
Parkway Hospital and SingHealth have signed a collaboration agreement to deploy the Ericsson Mobile Health solution for remote patient monitoring in the Changi General and Gleneagles Hospitals in Singapore. The Ericsson solution will be trialed at some of the hospitals' acute care wards, which specialize in patients that require round-the-clock monitoring as a result of chronic illnesses such as stroke, asthma and diabetes.
The Ericsson Mobile Health solution will enable automated collection and real-time monitoring of patients' vital signs, such as heart and breathing rates, oxygen saturation and blood pressure. The precision and timeliness of this information will enable hospital staff to provide appropriate medical assistance to the patients (Press release).
Ericsson's acquisition of Netwise is nearing completion (Press release). The acquisition will add new strength and depth to Ericsson's enterprise communication and collaboration offerings. 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. Ericsson sees a growing market for new advanced enterprise solutions based on IP, mobility and convergence: applications that can unify these domains are crucial to the efficiency of modern business.
Netwise's solutions support varying infrastructures and different vendor PBXs, and can be deployed in service providers' (mobile Centrex) offerings as well as in enterprise-owned PBX solutions. The company is highly competent in selling complex communication solutions in IP multi-vendor environments.
Ericsson sees the combination of the strengths of a global company and Netwise's cutting edge IP-competence and applications as a way to develop our presence in the applications area with reduced time-to-market. Ericsson intends to establish a world-class applications centre with a high level of entrepreneurship and competence in communication-supporting applications.
Sony Ericsson gained market share and outstripped market growth by a factor of two to achieve third-quarter unit shipments of 19.8 million (43 per cent up year-on-year) and sales of 2,913 million euros (42 per cent up year-on-year) (Press release).
Ericsson has unveiled its strategy for full service broadband, which is designed to deliver converged broadband services that offer user convenience, along with minimal risk and short time-to-market for operators. Ericsson's offering includes world-leading solutions for HSPA, VDSL2 and IMS (Press release).
Ericsson has reached an agreement with Finnish company Distocraft Oy to acquire the assets of Distocraft's business. The company, which has 42 employees, specializes in software development for mobile network performance management.
A new tutorial paper from Ericsson describes how IP core pooling can be used to improve data network efficiency to deliver appropriate service quality and a superior user experience.
A newly-published white paper from Ericsson outlines how local area access technology Generic Access Network (GAN) enables GSM and WCDMA services to be delivered over broadband and Wireless LAN connections at home or in the office (White paper).
Efficient service lifecycle management is key to competitiveness for telecom operators. A new white paper from Ericsson describes the importance of ensuring that the Service Delivery Platform - and the complementary business processes - are built so that they can evolve and gradually incorporate new capabilities, including IMS, to reduce time-to-market and boost current and future service revenues (White paper).
This new white paper describes how adapted communication services and advanced information services that use public network infrastructure, such as 2G or 3G mobile networks, offer great potential to improve the efficiency of National Security and Public Safety operations - both in day-to-day operations and in crisis situations (White paper).
For the latest Ericsson white papers, please click here.
Ericsson has launched a brand new publication, called Ericsson Business Review, which aims to provide thought-provoking articles and a long-term perspective on business strategies in telecoms. Its purpose is to shape and build opinion, as well as to share knowledge and insights with Ericsson's customers and other key industry players. For further information and to subscribe, please click here.
The new issue of Ericsson Review - which covers the latest Ericsson technology research, development and production achievements - marks the fiftieth anniversary of the mobile phone, and covers the hot technology topics of HSDPA performance and evolution, IPTV services based on IMS, and real-time charging, as well as the development of new high-quality voice codecs and high-efficiency RBS power amplifiers (Ericsson Review).
24-26 October 2006
IMS Strategies
Location: Marriott Hotel, Champs Elysées, Paris, France
Website
Ericsson is an exhibitor and sponsor.
Tuesday, 24 October, 6pm
Roundtable: Should IMS be seen as a competitive tool or a bridging technology for joining forces with ISPs?
Speaker: Todd Ashton, Director, Ericsson IMS program
Thursday, 26 October, 2:10pm
Topic: Enabling operators' marketing departments to develop applications with short time-to-market
Speaker: Todd Ashton, Director, Ericsson IMS program
29 October - 1 November 2006
IIR, Transport networks for Mobile Operators - Middle East
Location: JW Marriott Hotel, Dubai
Website
Thursday, 31 October, 5:05pm
Topic: Determining the optical access technology mix - fiber, copper and wireless - to optimize ROI
Speaker: Stefan Danielsson, Ericsson Transmission and Transport Networks
31 October - 2 November 2006
Second Annual IMS/MMD Conference
Location: Hotel Crescent Court, Dallas
Website
Ericsson is branding sponsor of this event with one speaker slot, one panel session and chairmanship of the third day. This event is designed specifically to address the needs of the US market.
Wednesday, 1 November, 12:30pm
Topic: Analysing the impact of IMS on the telecoms ecosystem: openness and the new service paradigm
Speaker: Todd Ashton, Director, Ericsson IMS program
Wednesday, 1 November, 5:00pm
Topic: Achieving standardization between third-party application developers and handset operating systems
Speaker: Stefan Svedberg, Director Ericsson Mobile Platforms
Wednesday, 1 November, 5:15pm
Panel session: Will IMS fulfil its vision of ubiquitous access for application developers?
Panellist: Stefan Svedberg, Director Ericsson Mobile Platforms
Conference chairman 2 November: Marc LeClerc, Manager Global IMS Developers Support Expert Centre, Ericsson Canada
31 October - 3 November 2006
European Utility Telecom Conference (EUTC)
Location: Rome, Italy
Website
Thursday, 2 November, 9:30am
Topic: Intelligence Utility Infrastructure - Key to Building
the 21st Century Utility
Speaker: Jens Erler, Manager New Sales Development for
Mobile Enterprise, Ericsson
1-2 November 2006
Messaging Asia
Location: Raffles Convention Center, Singapore
Website
Ericsson is a lanyard sponsor and has a stand in the exhibition.
Thursday, 2 November, 9:45am
Topic: IMS/SIP-based next-generation messaging
Speaker: Anna Wolf, Portfolio Manager, Ericsson Multimedia Solutions
Panel discussion: to be confirmed
5-9 November 2006
Gartner Symposium ITXpo
Location: Palais des Festivales, Cannes, France
Website
Tuesday, 7 Nov, 5:15pm
Solution Provider Session: Unified Communication enables true mobility
Speaker: Martin Harriman, VP Sales, Marketing & Business Development Ericsson Enterprise
27 November - 1 December 2006
IMS Global Congress
Location: Intercontinental Hotel, Geneva
Website
Ericsson is a silver sponsor of this event. In the conference Ericsson has one speaker slot and one panel session. The exhibition stand will feature and demonstrate converged multimedia services over IMS.
Monday, 27 November
Pre-conference workshop: Understanding the IMS ecosystem
Led by Ericsson with presentations and break-out sessions
Tuesday, 28 November, 4:20pm
Panel discussion: Debating if and how you should deploy IMS
Panellists will include an Ericsson representative
Wednesday, 29 November, 9:50am
Topic: Leveraging the new business opportunities that IMS brings
Speaker: Todd Ashton, Director, Ericsson IMS program
4-8 December 2006
ITU Telecom World, AsiaWorld Expo, Hong Kong
Forum participant: Carl-Henric Svanberg, President and CEO, Ericsson
Ericsson will also exhibit at this event
Website
4-8 December 2006
IIR Next Generation Billing, Charging & Customer Management and Mobile Payment Strategies
Location: Arabella Sheraton Grand Hotel, Munich, Germany
Website
Ericsson is the gold sponsor of this event
Tuesday, 5 December, 9:40am
Topic: Developing convergent online charging to meet the demands of a fast-moving, multi-service and multi-partner world
Speaker: Niclas Melin, Marketing Director Revenue Management - Business Unit Systems, Ericsson
Wednesday, 6 December, 9:40am
Topic: Examining the Key Challenges in Serving the Global Mobile Payments Market and Analysing the Most Effective Methods for Cross-Border Payments
Speaker: Fredrik Neumann, Director Sales & Marketing IPX Northern Europe, Ericsson
15 November 2006
Ericsson Strategy and Technology Summit
Location: Tokyo
For further information about industry analyst activities, please contact industry.analysts@ericsson.com or refer to our website.
1 November: Ericsson Managed Services - Field Operations
29 November (preliminary): Ericsson Service Delivery Platform
13 December (preliminary): Optical and backhaul solutions
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.
The next newsletter will be issued following the quarterly report on 2 February 2007. For further details regarding the quarterly reports, please check here.
Don't forget to check out the industry analyst web site.
We would like to welcome Eva Andersson to our global Industry Analyst Relations team. Eva will be responsible for analyst relations in the Asia Pacific region.
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), Frank Puglia, (North America), Rob Elston (Europe and the Middle East) or Eva E Andersson (Asia Pacific).