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Newsletter: Q3 2007

Top stories

Change in business mix affects Ericsson’s profitability

Ericsson reported net sales of SEK43.5 billion in the third quarter, six percent higher than the same quarter in 2006. However, net income for the quarter was SEK4 billion, 36 percent down compared with last year, as a result of lower-than-forecast sales in network upgrades and expansions. All other businesses performed as expected (Press release).

Continuing strong momentum at Sony Ericsson

Strong sales of lower- and mid-priced phones helped drive a 31 percent growth in Sony Ericsson's shipments for the third quarter of 2007, compared with the same period in 2006. Last quarter also saw the launch of the company's new W580 Slider Walkman phone and its P1 smartphone (Press release).

First HSPA platform to enable true mass-market multimedia devices

Ericsson has introduced its new U335 WCDMA mobile platform, the first to enable the introduction of mass-market HSPA multimedia devices capable of handling new services - including interactive mobile TV and video calling - that require both fast uplink and downlink data speeds (Press release).

Viewpoint – new ways to serve business ‘Digital Natives’

A new generation of business people is emerging that is well acquainted with always-on mobile communications and Internet-based social networking tools. Operators can address the needs of these 'Digital Natives' with new enterprise communication and collaboration services that address real business needs and open significant revenue streams.
 
The generation of mobile and Internet users raised on texting, instant messaging, online communities and video calling as basic ingredients of their social lives expects the same kinds of tools to make their professional lives easier and more productive. They will demand a more open enterprise communications and collaboration environment that lets them deal directly with colleagues, business partners and suppliers quickly and conveniently using the best channels available.
  
The emergence of these Digital Natives presents a prospective market for network operators. Ericsson intends to help operators address this opportunity with solutions that offer 'Enterprise 2.0' capabilities, backed by our core competencies in mobility and unified communications. 

Real business needs

There is a 'virtuous circle' of needs that any new communications and collaboration service must address when serving the enterprise.
 
The first requirement is to reduce the cost of mobility, whether for remote or home workers, or for those using their mobile phones and laptops on the road. For many businesses today, these costs are completely uncontrolled - workers often make business calls with private mobile accounts that are recharged to the company, adding an administrative overhead.
 
This leads to the second requirements: predictability and control. Businesses need systems and tools that help them manage their communications and collaboration services more effectively. All voice and data communications - especially with customers - must be handled professionally and securely - without creating nasty surprises on their balance sheets.
  
Third, businesses need services that boost both personal and business efficiency. Businesses need their people to be easily accessible and able to respond to customers, colleagues and partners, wherever they are working. Increasingly, businesses want a single technology platform to handle all their ICT needs. Many businesses - especially smaller ones - would prefer not to own and manage equipment at all.
 
Finally, all businesses want to be more competitive and serve their customers better. Communications and collaboration services need to support moves to more open, interactive business processes satisfaction.
  
Operators can address all these needs today by applying new technologies and applications.

New tools of the trade

The most basic business need - reducing the cost of mobility - is already being met through fixed-mobile integration solutions that bring the mobile phone closer to the existing PBX environment, so calls to and from mobiles are handled similarly to fixed extension calls. These solutions also make billing predictable by bringing control of all mobile phones into the corporate environment.
 
One operator that has succeeded in attracting and retaining enterprise customers in this way is Swisscom. Its convergent communications offering - based on the Ericsson Virtual Private Network (VPN) solution with Mobile Extension support - already boasts a huge 25 percent of its mobile postpaid subscriber base as customers, and 10,000 users are being added each month.
  
A new integration solution that operators can use to target business customers is the Ericsson Enterprise Mobility Gateway. This delivers mobile least-cost routing services and integrates mobile users independent of the existing PBX infrastructure.
 
More operators are offering businesses mobile data services - mobile email and PIM applications, for example - that deliver the manageability and security businesses want through centralized control over usage and authentication.
 
Converged Centrex solutions will soon be available for operators to target smaller businesses with multimedia 'virtual PBX' services. These will provide enterprises with productivity-enhancing mobile and multimedia applications, with the simplicity and control of a hosted service.
 
Over the next few years we shall see more deployments of mobile real-time collaboration solutions by operators. Today these are limited to single applications such as conferencing, but soon we'll see multimedia conferencing, white boarding, file sharing and unified messaging added to the mix - all making use of operators' IMS infrastructure.
 
Operators will be able to help companies serve their customers better through multimedia contact centers. Again, these will make use of IMS infrastructure to deliver customer interaction based on chat, email, video and text messaging, as well as telephony.
 
The trick for operators will be to offer a wide range of products - many tailored to individual market segments - based on a limited set of applications.
 
Once operators have got businesses' Digital Natives on board in a way that addresses real business needs, they are likely to keep them.

Mobile networks

New Tower Tube cuts radio site energy needs

Designed by renowned Scandinavian architect Thomas Sandell, Ericsson's Tower Tube is a new concept in site construction. The flexible concrete tower encapsulates all radio base station equipment, including the antennas and power source, to reduce power consumption as much as 40 percent. Besides producing 30 percent lower CO2 emissions in construction than its traditional steel counterparts, the new design occupies 60 to 75 percent less land area than a conventional site (Press release).

Mobile broadband is becoming a mass-market everywhere

Ericsson President and Chief Executive Officer Carl-Henric Svanberg said at the company's Strategy and Technology Summit in London last quarter that mobile broadband will play an essential role in closing the digital divide (Press release).
 
To demonstrate this, Ericsson has been running the Gramijyoti Rural Broadband Project near Chennai in India. Launched in early September, the trial has been displaying the benefits of WCDMA/HSPA technology in bringing high-speed Internet services to rural communities
(Press release).
 
Ericsson announced a number of agreements with mobile operators to build or extend HSPA networks:

  • Ericsson won a contract worth an estimated USD1.3 billion to supply GSM and WCDMA/HSPA equipment and telecom services to India's largest telecom operator, Bharat Sanchar Nigam (Press release).
  • Bhutan Telecom selected Ericsson to design, supply, install and integrate the kingdom's first WCDMA/HSPA network (Press release).
  • Two Indonesian operators, Excelcomindo Pratama (Press release) and Indosat (Press release), awarded Ericsson with contracts to expand their WCDMA/HSPA networks.
  • Movistar, Uruguay's leading mobile operator, is using Ericsson as the sole supplier and network integrator for its new WCDMA/HSPA network (Press release).
  • Pannon, Hungary's second-largest mobile operator, has selected Ericsson to expand its WCDMA network and integrate HSPA mobile broadband services (Press release).
  • Finnish operator Elisa is buying Ericsson equipment to expand the capacity and coverage of its WCDMA/HSPA network (Press release).

Nordic countries upgrade HSPA services

Ericsson is providing operators with the technology to provide enhanced HSPA mobile broadband services with downlink speeds of up to 7.2Mbit/s and uplink speeds of 1.4Mbit/s. It helped Elisa (Press release) become the first operator in the Nordic region to launch HSPA on the uplink and it has also enabled Sweden's 3 Scandinavia (Press release), TeliaSonera and Tele2 (Press release) to expand and upgrade their HSPA networks.

Evolving GSM networks

Two operators turned to Ericsson to extend their GSM coverage and capacity during the quarter:

  • Bangladesh operator TMIB chose Ericsson to upgrade and expand its EDGE-enabled GPRS/GSM network and provide mobile broadband services (Press release)
  • In Paraguay, Ericsson's softswitch solution will enable mobile operator Personal to modernize and expand its GSM network (Press release).

IMS unlocking all-IP based convergence

Ericsson delivered and integrated an IP Multimedia Subsystem (IMS) solution for Vodafone Czech Republic, which has enabled the operator to roll out a range of next-generation IP telephony and multimedia services to its business customers (Press release).

Multimedia services

Ericsson and Endemol sign global partnership

Ericsson, TV production company Endemol and Dutch technology company Triple IT have developed 'Me-On-TV' - a new solution for delivering user-generated content. 'Me-On-TV' is a network and device-independent solution that enables consumers to upload, publish and share live or recorded video content via any mobile device, from anywhere to any screen around the world. Offered as a white-label service to content aggregators such as broadcasters, Internet sites and network operators, it will be delivered as an end-to-end service, fully integrated, hosted and managed by Ericsson (Press release).

Ericsson, Sony and Sony Ericsson demonstrate home-based multimedia

The three companies came together during Broadband World Forum in Berlin to demonstrate the multimedia possibilities available using mobile handsets and home network devices. The combination of technologies based on IMS and DLNA standards will enable consumers to access innovative multimedia services anywhere, any time on any device (Press release).

Mobile devices

Ericsson launches HSPA in the 2.6GHz frequency band

In response to the strong market growth and demand for mobile broadband, Ericsson has launched a range of HSPA infrastructure and device platforms for WCDMA/HSPA in the 2.6GHz frequency band (Press release).

Texas Instruments and Ericsson to develop new solutions for 3G devices

Ericsson and Texas Instruments formed a strategic partnership to create custom solutions for new Open OS-enabled 3G devices (Press release).

Fixed networks

New Ethernet metro access node unveiled

The launch of the new EMN120 Ethernet Metro Access Node strengthened Ericsson's Full Service Broadband offering (Press release).

Ericsson showcases live optical interoperability

A successful live demonstration at the ECOC07 event in Berlin highlighted the compatibility of Ericsson's optical portfolio with other vendors' equipment as part of a multi-operator global network (Press release).

Deutsche Telekom chooses Ericsson for VDSL2 broadband

German operator Deutsche Telekom is to deploy Ericsson's VDSL2 broadband access solution in 12 cities. The move will step up the introduction of broadband services with downlink speeds up to 50Mbit/s (Press release).

Telecom services

World-first deployment of Ericsson Automatic Data Retention Solution

Ericsson signed a contract with Vodafone Netherlands to deploy its Automatic Data Retention Solution (ADRS) to help the operator meet the requirements of the new EU directive (Press release).

Ericsson extends network management deal with Warid Telecom

A new three-year managed services agreement with Pakistan's Warid Telecom will see Ericsson manage the operations and performance of the operator's nationwide GSM/GPRS network (Press release).

New global service delivery center in Lebanon

Ericsson has established a new global delivery center in Lebanon, which will eventually employ more than 100 engineers and staff delivering systems integration, network and technology consulting and managed services across the Middle East and Africa (Press release).

Telefónica Mexico asks Ericsson to manage its spare parts

Ericsson took on a contract to manage the multi-vendor spare parts supply and logistics for Telefónica Mexico (Press release).

Microwave network brings Ericsson and Deutsche Telekom together

A six-year managed services contract will see Ericsson look after the operation and maintenance of Deutsche Telekom's microwave network in Germany (Press release).

Ericsson wins back-office deal with Finland’s Elisa

Elisa, the largest provider of enterprise communications services in Finland, has selected Ericsson to manage and develop its multivendor enterprise back-office environment (Press release).

Award for Ericsson’s Napster Mobile work

Ericsson won the Mobile Entertainment 2007 Award for Best Managed Services Provider for its successful worldwide deployment of Napster Mobile (Press release).

Dobson Cellular looks to Ericsson for hosted services

Ericsson won a contract to supply and host ringback tone and content download services for US operator Dobson Cellular Systems (Press release).

Enterprise communications

Ericsson teams with Microsoft for mobile unified communications

Ericsson will build the next generation of its Enterprise Mobility Gateway on Microsoft Office Communications Server's VoIP call management, enabling people to use their mobile phone, smartphone or laptop computer as an extension of their corporate communications network (Press release).

Corporate news

Ericsson appoints new CFO

Ericsson has named Hans Vestberg as its new Chief Financial Officer. Karl-Henrik Sundström, former CFO and Executive Vice President, has decided to leave Ericsson (Press release).

Millennium Villages project

Ericsson is partnering with The Earth Institute at Columbia University to help provide mobile communications to the Millennium Villages project. The project aims to improve living conditions for 400,000 people in 10 African countries (Press release).

Ericsson brings mobile voice and data to Ugandan refugee camps

In partnership with the GSMA Development Fund, MTN Uganda and the United Nations High Commissioner for Refugees, Ericsson is working to bring mobile voice and data communications to refugee camps in northern Uganda (Press release).

Ericsson recognized for its approach to climate change

The Carbon Disclosure Project (CDP), a coalition of global investors with more than USD41 trillion in assets, has described Ericsson as 'best in class' for its approach to climate change disclosure (Press release).

Latest white papers

Can mobile communications close the Digital Divide?

Mobile communications holds the greatest potential for bridging the world's technology gap, as this white paper describes (White paper).

Long Term Evolution (LTE): an introduction

This paper outlines how Long Term Evolution (LTE) offers superior user experience and simplified technology for next-generation mobile broadband (White paper).
 
For the latest Ericsson white papers, please click here

Latest publications

Ericsson Review 3/2007

The new issue of Ericsson Review - which covers the latest Ericsson technology research, development and production achievements - takes an in-depth look at standardization efforts being made by the Open IPTV Forum, the network infrastructure needed for IPTV, the development of carrier-grade Ethernet, the use of Java EE SIP containers for IMS service composition and forthcoming LTE-SAE architecture (Ericsson Review).

Events

Industry events

October 28-November 1
Fall VON

Boston Convention and Exhibition Center, Boston
Website
 
October 30
Foundation for the delivery of IP-based services over converged networks
Panelist:  Marc Leclerc, Director of IMS ecosystem and applications development


October 30-31
GSM - 3G North Africa
JW Marriott, Cairo
Website
 
October 30
Examining the role of HSDPA in boosting 3G deployment in North Africa
Speaker: Alain G. Maupin, Key Account Manager
The power of the low-income segment
Interactive seminar organized by Ericsson
 
October 31-November 2
CASBAA

Hong Kong Academy for Performing Arts, Hong Kong

Website
  
November 2
Small screens, big ideas

Panelist: Hubert Kjellberg, Head of Content
 
November 4-8
IIR Revenue Management and Billing

JW Marriott, Dubai
Website
 
November 6
Transforming to convergent, real-time charging and billing to meet the demands of a fast moving, multi service and multi partner world

Speaker: Niclas Melin, Marketing Director Revenue Management
 
November 4-8
Gartner Symposium ITExpo
Palais de Festivals, Cannes, France
Website
 
November 5
Marketplace theatre presentation (15 mins)
 
November 6
Marketplace theatre presentation (15 mins)
 
November 7
Marketplace theatre presentation (15 mins) - two presentations
 
November 7
Solution provider session: Unified communications - meeting enterprise needs to mobilize
 
November 5
IMS Internetdagama

Stockholm
  
IMS - Multimedia for the mass market
Speaker: Magnus Furustam
 
November 5-9
Transport Networks Strategies
Grand Hotel, Princess Sofia, Barcelona
Website
 
November 5
Explaining the key optical networking elements and feature requirements of the NGN
Speaker: Steve Ferguson, Director - Network Strategy
  
November 6
Developing guidelines for the migration from SDH to OTN in the optical transport network
Speaker: John Ash, Network Strategy Director
 
November 7
Examining the role of SDH and Ethernet in the NGN access domain
Speaker: Tor Holmgren, Strategic Product Manager
 
Examining vendor solutions that have been deployed to help specific fixed/mobile/cable network operators to migrate their networks from TDM to packet transport
Panelist: Matthew Smith, Head of Optical Product Marketing
  
November 12-15
Mobile Asia Congress 2007

The Venetian, Macau

Website
 
November 13
Delivering the mobile broadband vision

Speaker: Carl-Henric Svanberg, President and Chief Executive Officer
 
November 13
Mobile TV: Tuned into Asia

Speaker: Jan Wäreby, Senior Vice President, Business Unit Multimedia
 
November 13-15
Mobile Internet World

Hynes Convention Center, Boston
Website
 
November 14
Rapid fire: How the Mobile Internet will change your life

Panelist: Erik Kruse, Director, Consumer Lab
 
November 15
Mobile Internet: Realizing the potential in the new multimedia world

Speaker: Pankaj Asundi, Vice President, Media and Content
 
November 14-15
SIME - Scandinavian Interactive Multimedia Event

Stockholm
Website
  
Ericsson speaker and panelist to be announced
 

November 20-21
Next generation mobile networks - Defining the future of mobile broadband services

Marriott Hotel, Amsterdam

Website
 
November 21
Migration of the packet core network to the SAE standard

Speaker: Anders Lundström, Director, Product Management Packet Core Evolution
  
Comparing the alternative technologies for NGMN
Speaker: Magnus Frodigh, Director, Wireless Access Networks, Ericsson Research
 
November 21-22
GSM - 3G Africacom

International Convention Centre, Cape Town

Website
 
November 21
HSPA and its Evolution for Optimal Delivery of Wireless Broadband

Speaker: Pieter van der Westhuizen, VP Networks and Sales Support
The power of the low-income segment
Interactive seminar organized by Ericsson
 
November 26-29
Next Generation Billing & Mobile Payments
Hotel President Wilson, Geneva

Website
 
November 27
Transforming to convergent real time charging and billing to meet the demands of a fast moving, multi service and multi partner world

Speaker: Niclas Melin, Marketing Director Revenue Management
 

November 28
Designing And Delivering A Flexible Mobile Payment Portfolio - An Understanding Of The Technical Requirements

Speaker: Peter Engblom, Strategic Product Manager, Revenue Management
 

December 3-6
GPON Deployment Forum

Moevenpick Hotel, Amsterdam

Website
 
December 6
Finding innovative ways to minimize the cost of FTTH deployment
Ericsson panelist to be confirmed
 
December 3-7
IMS Global Congress 2007

Hilton Hotel, Amsterdam
www.iir-telecoms.com


December 4
Achieving optimal integration between the IMS framework, legacy network infrastructure and legacy OSS/BSS systems

Eric Boudriau, Vice President, Systems Integration, Ericsson North America
 
December 5-7
IPTV World Forum Asia

Suntec, Singapore
 
December 7
Delivery HDTV over DSL

Speaker: Alan Delaney, IPTV business Development Director, Tandberg TV
 
January 29-30, 2008
Mobile TV Latin America
Rio de Janeiro

Website

Ericsson events

November 14, 2007: Morgan Stanley TMT conference, Barcelona
Karl-Henrik Sundström, Executive Vice President and CFO 
   
February 1, 2008: Q4 and full year report 2007  
Reports on past events can be found here
 
For further information about industry analyst activities, please contact industry.analysts@ericsson.com or refer to our website.

Telebriefings

October 30 Ericsson core networks - quarterly briefing.
 
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 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 are: Eva Sparr (Global, North America), Frank Puglia, (North America), Rob Elston (Europe/Middle East/Africa) or 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 February 1 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