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Ericsson Global
Newsletter: Q3 2009 
Overview

• Top stories
• Viewpoint
• Mobile networks
• Multimedia services
• Mobile devices
• Fixed networks
• Corporate news
• Latest white papers
• Latest publications
• Events
• Contacts and further information

Top stories
Ericsson reports third quarter results

Ericsson reported net sales of SEK46.4 billion for the third quarter of 2009, down 6 percent from the same quarter a year earlier. Operating income excluding joint ventures and restructuring charges amounted to SEK5.5 billion in the quarter, compared with SEK5.6 billion a year earlier, resulting in a slightly improved operating margin of 11.7 percent, compared with 11.5 percent last year (Press release).

 

ST-Ericsson reports on third quarter

ST-Ericsson, the 50/50 joint venture between Ericsson and STMicroelectronics, reported net sales of USD728 million, better than normal seasonal patterns and showing a sequential progress of 9 percent, with solid performance in Asia. The USD77 million operating loss, excluding amortization of acquisition-related intangibles and restructuring charges, compares with a USD165 million operating loss in the second quarter 2009 – reflecting tight control of product costs and operational expenses and positive seasonal effects (Press release).

 

Sony Ericsson reports third quarter results

Sony Ericsson reported sales of Euro 1,619 million, a sequential decrease of 4 percent and a year-on-year decrease of 42 percent, resulting in a net loss of Euro 164 million. Units shipped in the quarter were 14.1 million, an increase of 2 percent quarter-on-quarter and a decrease of 45 percent year-on-year (Press release).

 

Ericsson to acquire majority of Nortel's North American wireless business

Ericsson has agreed to acquire the parts of the Carrier Networks division of Nortel relating to CDMA and LTE technology in North America for a cash purchase price of USD 1.13 billion (Press release).

Viewpoint – LTE voice: no need for quick fixes

Andy Williamson, Manager, Strategic Core and IMS Marketing, Ericsson
 

There is currently a fair amount of debate about how best to deliver voice services over Long Term Evolution (LTE) access networks – especially following recent announcements from the VoLGA (Voice over LTE via Generic Access) Forum about its initiatives in this area. But there is already a clear way forward for LTE voice services, based on agreed open standards for delivering real-time services over fixed and mobile all-IP networks.

 

When LTE radio access networks begin to be commercially rolled out in the next couple of years, we’ll witness a step-change in mobile broadband data speeds. With its ability to deliver 100Mbit/s downloads, LTE will mean improved Internet access for our mobile phones, laptops, dongles and other devices while we’re on the move or away from high-speed fixed line connections. Naturally, we’ll also be able to make and receive telephone calls using LTE-enabled devices.

 

The problem with the current debate around exactly how LTE voice services should be handled is that it shifts the focus away from the bigger picture. Yes, it is important that traditional voice calls should be handled elegantly and efficiently by LTE devices from the outset. But the LTE-based, all-IP mobile broadband experience will be about much more than this.

 

An even bigger potential problem with multiple proposals for handling LTE voice is that we could end up with telephony being implemented in inconsistent ways across different networks and different end-user devices – stripping the value away from what is still operators’ biggest and most profitable service.

 

By putting the right service solutions in place for LTE from day one, operators will have a platform that is not just good for high-speed Internet and basic voice services, but also for converged, real-time multimedia services that really take advantage of the capabilities of LTE and other broadband networks.

 

Fixed operators leading the charge

Fixed network operators are already having to make crucial strategic decisions about the evolution of their networks over the coming years, as they compete for share of mind – and share of wallet – with alternative media and Internet-based players.

 

Today, almost all the large fixed line operators focus primarily on modernizing their networks to ensure future competitiveness. This marks a clear shift from the previously common approach of cost-reducing current business by looking for the cheapest way of delivering the widest range of legacy services.

 

For voice and other real-time communication services delivered over mobile and fixed IP networks, the agreed 3GPP and ETSI/TISPAN standard is Multimedia Telephony (MMTel). MMTel is a service that uses IP Multimedia Subsystem (IMS) architecture to deliver voice and video communications services.

 

In other words, the MMTel standard is ready to deliver telco-grade voice services over all-IP LTE access networks as soon as they are ready, and to deliver a host of new revenue-generating services into the future. Furthermore, because MMTel sits on standard IMS architecture, it enables network consolidation – reducing overall capital and operating expenditure – as well as fixed–mobile convergence.

 

Convergence is targeted today through the integration of MMTel into the Rich Communications Suite (RCS) initiative, with specifies a set of common standards applicable to both fixed and mobile networks. It covers the complete range of interoperable communication services, adding – among other things – a presence-powered, active address book, messaging and text chat, and image/file transfer on top of the high-quality voice and video conferencing provided by MMTel. 

 

RCS will ensure that users experience the same look and feel for all communication services, with access to the same address books, buddy lists and message stores, on whatever device they happen to be using, wherever they go. Such capabilities can really only be delivered across fixed and mobile accesses by using standardized IMS architecture and services.

 

Big-bang, not make-do

Voice services delivered over LTE according to this industry standard will help ensure a ‘big-bang’ introduction of the technology, rather than a ‘make-do’ one. Users will begin to see the benefits of converged multimedia services delivered over LTE very quickly. Operators will be able to evolve and blend services in smart ways – for example, they might enable their subscribers to use an IPTV console to respond to an incoming call in a variety of ways, such as a text message or voicemail, without having to interrupt their viewing.

 

In the early stages of LTE roll-out, coverage will of course be patchy. Nonetheless, service continuity for telephony based on MMTel will be assured: the 3GPP-standardized Single Radio Voice Call Continuity (SR-VCC) enables in-call hand-over of a VoIP call from LTE to a 3G or 2G cell without interruption.

 

If mobile operators want to maximize the business opportunity from rolling out LTE, there is really only one path to delivering voice and converged multimedia services – however tempting alternative ‘quick-fix’ solutions may appear. 

 

 

If you would like to discuss this issue in more detail, please contact: industry.analysts@ericsson.com.

Mobile networks

50 million people to go mobile on Chinese social network

Kaixin001, the largest and fastest-growing social networking site in China, with more than 50 million subscribers, has entered a three-year partnership with Ericsson to develop innovative mobile applications that will help millions of users access the site wherever and whenever they want (Press release).

 

Unlimited wireless carrier MetroPCS announces vendors for LTE launch

MetroPCS Communications, a provider of unlimited, flat-rate, no signed contract wireless communications service in the United States, has selected Ericsson as infrastructure vendor for its LTE broadband service launch in the second half of 2010 (Press release).

 

EMOBILE launches Japan's fastest HSPA mobile broadband network

Mobile broadband operator EMOBILE has launched Japan's first HSPA Evolution network, enabling peak data rates of 21 Mbps, as part of a major expansion and upgrade being undertaken by Ericsson (Press release).

Multimedia services

Sweden's Com Hem to deliver advanced interactive TV services with Ericsson

Sweden's largest cable television operator, Com Hem, has selected Ericsson's interactive TV platform to deliver new advanced entertainment services to its subscribers (Press release).

 

Mobile devices

 

New mobile broadband module for consumer electronics devices

Ericsson has introduced the C3607w mobile broadband module, which is specifically designed to bring high-speed wireless connections to a new generation of consumer electronic devices over HSPA (Press release).

 

Fixed Networks

 

AT&T names Ericsson as key supplier for future wireline business

AT&T has selected Ericsson as one of two suppliers of full system solutions for the operator's wireline access network, which will significantly accelerate AT&T's ability to bring new broadband-based products and services to market (Press release).

Corporate news

Ericsson helps found Digital He@lth Initiative's advisory board

Ericsson has become a founding member of the advisory board of the Digital He@lth Initiative (DHI), a multi-stakeholder partnership that aims to accelerate the achievement of the Millennium Development Goals (MDGs) for health through digital health solutions (Press release).

 

Wireless expert Gilles Delfassy appointed President and CEO of ST-Ericsson

ST-Ericsson, a joint venture of STMicroelectronics and Ericsson has appointed Gilles Delfassy as President and Chief Executive Officer of ST-Ericsson, effective November 2, 2009 (Press release).

 

GSMA, Ericsson and Zain launch safety and security initiative across Lake Victoria region

Ericsson and Zain, the Pan-Africa mobile operator have extended mobile network coverage across the three East African states and launched a safety and security initiative, under an initiative coordinated by the GSM Association to save lives and bring development across the Lake Victoria region (Press release).

Latest white papers

The future role of telecom

Building on the experience gained from telecom’s proven ways of working, with supporting regulations, ensures interoperability and helps achieve the goal of universal services and communications for all. In this way, the industry can achieve the huge volumes and low prices that will benefit consumers, operators, and service and content providers – and the whole of society. The Internet calls for new roles and business opportunities, for both new and established players, and the combination of the Internet’s creativity and telecom’s scalability and efficiency has enormous potential (White paper).

 

Connecting the digital home

The emerging digital home market is rapidly taking shape and growing – thanks to standards like those from the Digital Living Network Alliance (DLNA) and Universal Plug and Play (UPnP) Forum, which allow consumer electronics devices to share content without complicated configuration. However, the connected digital home is much more than just connecting gadgets and devices. It is an opportunity for operators to expand into new business areas, connecting users to the services they want and enjoy at home, from any device, even when they are not at home (White paper).

 

The evolution of EDGE

EDGE – Enhanced Data rates for Global Evolution – has become a natural upgrade for GSM systems, providing fast Internet access for the mass market and serving as an important complement to WCDMA/HSPA and, in the future, LTE networks. With EDGE Evolution, performance and capacity are significantly improved over existing infrastructure, delivering true mobile broadband services over the GSM/EDGE network (White paper).

 

Efficient softswitching

Fixed and mobile operators face growing competition in their key service, telephony. Aggressive reduction of recurring costs is essential to maintain competitiveness, preserve margins and secure future business. Telecom-quality softswitching allows operators to address core network running costs, and enables secure, user-transparent migration of today’s networks to an efficient, IP-based next-generation network (White paper).

 

Evolution to optical packet transport

Transport networks are continuously evolving. The current trends towards fixed–mobile convergence, packet-based services and rapidly traffic growth – but slow revenue growth – mean operators must leverage the best of available options in each layer to minimize capital and operational expenditure. There are clear roles for each layer in the packet network, and all-IP networks need a lot more than just IP (White paper).

 

For the latest Ericsson white papers, please click here.

Latest publications

Ericsson Business Review 02/2009

The latest issue of Ericsson Business Review, Ericsson’s thought-leading magazine on business strategies in telecoms, looks at how creativity and smart thinking can be applied across various aspects of telecoms. To view the latest issue and to subscribe, please click here.

 

Ericsson Review 02/2009

The latest issue of Ericsson Review – which covers the latest Ericsson technology research, development and production achievements – takes an in-depth look at telecom-delivered advertising, high-speed mobile backhaul demonstrators, converged TV solutions, next-generation Intelligent Networks, fixed–mobile multimedia service convergence, and the new Ericsson Labs web portal (Ericsson Review).

Events

3 November
Info-comWorld 2009 
Athens, Greece

 

First session: 'Infrastructure – base for next generation broadband'
Speaker: Dimitris Logothetis, Head of Technology, Greece, Cyprus, Albania & Malta

 

Special session: 'Green ICT'
Speaker: Maria Boura, Director of Marketing & Strategy, Greece, Cyprus, Albania & Malta

 

25–28 November 
Eurocities 2009
Stockholm, Sweden

 

26 November
Deep dive session: 'Telecom for green cities'
 
Sponsored and hosted by Ericsson 

Contacts and further information

If you would like further information about any stories in this newsletter, or to arrange a briefing, please send an e-mail to industry.analysts@ericsson.com.

 

Ericsson's global industry analyst relations team is: Peter Olofsson (Global, EMEA), Eva E Andersson (EMEA, APAC). Rob Elston (Americas), Colleen Rosander (Americas). Please contact the person responsible for activities in the region in which you are based.

 

The next newsletter will be issued following Ericsson's Q4 report 25 January, 2010. For further details regarding the quarterly reports, please check here.

 

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