Ericsson reported net sales of SEK54.5 billion for the fourth quarter of 2007 (almost unchanged from SEK54.2 billion a year earlier) and SEK187.8 billion for the full year (4 percent up on 2006). This performance reflected lower spending from operators on network infrastructure – especially on upgrades and expansions – and the continuing weakness of the US dollar (around half of Ericsson’s sales are USD-related). In constant currencies, estimated organic growth for the full year was 8 percent. Operating income was SEK7.6 billion in the quarter (SEK12.2 billion a year earlier) and SEK30.6 billion for the full year (SEK35.8 billion for 2006) (Press release).
Sony Ericsson shipped 30.8 million handsets in the fourth quarter of 2007, an 18 percent increase over the same period in 2006. Sales for the quarter were EUR3,771 million, in line with sales a year earlier, reflecting a strategic shift to a greater proportion of lower priced handsets (Press release).
Ericsson became the first vendor to demonstrate Long Term Evolution (LTE) operating in both Frequency Division Duplex (FDD) and Time Division Duplex (TDD) modes on the same base station platform (Press release).
In 2007, Ericsson entered the embedded PC module market with the launch of the Mobile Broadband Module F3507g, a mini PCI Express module that enables built-in High-Speed Packet Access (HSPA) connectivity. This was a significant step, designed to accelerate development and drive the creation of a mass market for mobile broadband. Now, mobile broadband appears to have reached a tipping point, and 2008 looks set to see dramatic growth in the availability and use of notebooks and other portable devices with HSPA embedded modules.
Nowadays, people are used to getting online with broadband while they are outside the home or office. But getting online can be fiddly and time-consuming, not to mention costly. Users typically have to locate a WiFi hotspot, ensure that the provider is trustworthy and, if they don’t have a WiFi subscription, pay for time-limited access.
The advent of external 3G USB modems, or ‘dongles’, that provide ubiquitous mobile broadband coverage anywhere within the provider’s 3G network has opened users’ eyes to the possibility of hassle-free, trustworthy mobile broadband access, wherever they go. Mobile broadband access is typically used as a complement to WiFi access in the office, although many people are also using it as an alternative ‘fixed’ broadband access at home.
Experience from several countries has shown that adoption rates soar as soon as mobile broadband is available at a USD30 price point for unlimited monthly usage.
Embedded HSPA modules take this behavior one step further by enabling always-available mobile broadband that is tightly integrated with the host notebook. Not only is there no need to purchase and carry a separate dongle that can be lost or damaged, users will enjoy superior mobile broadband experience with better radio performance and lower power consumption than an external card.
Ericsson sees mobile broadband being integrated into notebooks and other devices in three waves: first in notebooks aimed at business users; second in notebooks aimed at consumers; and third in other consumer electronic devices such as GPS navigators, in-car entertainment systems, gaming devices and cameras to name a few.
There are already more than 165 commercially deployed HSPA networks in more than 75 countries. What’s more, a burgeoning ecosystem of mobile broadband devices and services has emerged around the technology. For example, there are more than 400 HSPA-enabled devices on the market – including phones, notebooks, PC modems and wireless routers.
Out of the estimated 1.8 billion people who will have broadband by 2012, some two-thirds will be mobile broadband subscribers. By 2011, analysts predict that almost 200 million notebooks will ship annually, and Ericsson believes that at least half of these will have HSPA embedded modules.
Notebooks containing Ericsson’s F3507g Mobile Broadband Module are set to arrive on the market in mid-2008. The module is based on Ericsson Mobile Platforms’ HSPA chipset, used in mobile phones, which works both on WCDMA/HSPA and GSM/EDGE networks. Smaller than a credit card, it provides up to 7.2Mbps in the downlink and up to 2Mbps in the uplink. The module also has a GPS receiver that can be used in conjunction with positioning applications.
While the primary focus for the F3507g module is the notebook market, Ericsson will also pursue other opportunities, including the Fixed Wireless Terminal (FWT) market. Over time, Ericsson will make the technology available in even smaller form factors to further accelerate the integration of embedded modules in all kinds of connected devices.
HSPA is already benefiting from huge economies of scale and is set to offer ever-improving performance through HSPA Evolved, which will provide downlink speeds of more than 42Mbps and uplink speeds of 23Mbps, and Long Term Evolution (LTE), which will provide downlink speeds of more than 160Mbps and uplink speeds of 50Mbps.
With the clear trend towards mobile broadband-enabled notebooks and consumer electronics devices, the future for embedded mobile broadband modules looks bright. Ericsson intends to be the catalyst in creating a strong mobile broadband ecosystem.
As a natural evolution of GSM/WCDMA systems, High-Speed Packet Access (HSPA) is available as an upgrade to around 85 percent of the world’s existing mobile networks. By 2010, some 71 percent of mobile broadband connections are projected to be HSPA based, creating a mass market for mobile broadband.
HSPA from Ericsson already enables download speeds of up to 14.4Mbps and upload speeds of 1.4Mbps, and enables operators to more than double their system capacity and cut response times for interactive services.
Several mobile operators turned to Ericsson for their HSPA roll-outs during the quarter:
TELE Greenland chose Ericsson as core IP Multimedia Subsystem (IMS) supplier to deliver integrated fixed and mobile convergent services (Press release).
NTT DoCoMo launched a personal safety device based on Ericsson technology that obtains precise location information using GPS (Press release).
Vodafone Germany became the first operator to deploy Ericsson’s new Base Transceiver Station (BTS) Power Savings feature, which significantly reduces energy consumption in mobile networks (Press release).
Indian operator Idea Cellular selected Ericsson as the sole supplier of its GSM network in Mumbai. The parties also entered into a managed services partnership (Press release).
Indonesian mobile operator PT Telekomunikasi Selular (Telkomsel) and Ericsson deployed solar-powered macro radio base stations to provide cellular coverage in Sumatra (Press release).
Ericsson introduced a local call-switching feature across its GSM base station portfolio that generates dramatic savings in transmission costs for network operators (Press release).
CTM (Companhia de Telecomunicações de Macau SARL) named Ericsson as end-to-end integrator of indoor coverage for the largest single-structure hotel in Asia, and the second-largest building in the world, the Venetian Macao-Resort-Hotel (Press release).
T-Mobile Germany, with Ericsson as EDGE supplier and telecom services partner, completed the first part of its GSM network modernization in record time. Over the past 24 months, Ericsson upgraded more than half of T-Mobile's radio network to EDGE, replacing more than 10,000 base stations in seven federal states (Press release).
Uruguayan operator Administración Nacional de Telecomunicaciones (ANTEL) selected Ericsson to provide a common 2G/3G core network, including the Ericsson Mobile Softswitch Solution (Press release).
Israeli mobile operator Cellcom Israel is to deploy an Ericsson end-to-end mobile TV and video solution to give its subscribers access to live TV channels and video-on-demand (VoD) content (Press release).
Ericsson successfully performed interoperability tests for its multimedia broadcast multicast service (MBMS) solution with leading chipset vendors, setting the stage for widespread adoption of MBMS and availability of MBMS terminals (Press release).
Taiwanese mobile device manufacturer ASUSTeK Computer selected Ericsson's U360 EDGE/WCDMA/HSPA mobile platform for its recently launched T500 PC card (Press release).
Greek telecom operator and internet service provider hellas online selected Ericsson for IMS and telephony softswitch solutions (Press release).
Chunghwa Telecom (CHT), Taiwan's largest telecom operator, has selected Ericsson to supply reconfigurable optical add-drop multiplexers (ROADMs) as part of its five-year Optical Era Project (Press release).
Ericsson is the total solution provider and prime integrator of metropolitan area networks to support the launch of seven digital cities across Greece (Press release).
French broadcaster TDF chose Ericsson's MINI-LINK microwave transmission solution to provide flexible, scalable and cost-effective wireless transmission capacity for TV and broadband services (Press release).
Algerian operator Algérie Télécom named Ericsson sole supplier and systems integrator for its network upgrade, which will include the Telephony Softswitch, setting the stage for migration to an all-IP network (Press release).
Ericsson launched the Marconi OMS 1400 Optical MultiService Metro-Edge platform, which expands the packet evolution capabilities of its optical networking portfolio and strengthens its Full-Service Broadband offering (Press release).
Italian operator Telecom Italia Mobile (TIM) now offers Napster Mobile, the music service co-developed by Ericsson and Napster (Press release).
Ericsson acquired HyC Group, a leading Spanish IPTV consultancy and systems integrator (Press release).
Mobile operator 3 selected Ericsson to develop and host its mobile music service, 3Music, in Sweden and Denmark (Press release).
T-Mobile UK, part of Deutsche Telekom, signed a five-year managed services contract with Ericsson to modernize its network and provide managed services with a comprehensive range of professional services (Press release).
AT&T signed a hosting agreement with Ericsson for the provision of real-time charging services for the operator's popular GoPhone mobile prepaid services in the USA and Puerto Rico (Press release).
Ericsson is to integrate its unified communications software with the HP BladeSystem platform to help enterprises integrate their voice and data systems and make business communications applications accessible anytime, anywhere, on any device (Press release)
Ericsson named Torbjörn Possne as Senior Vice President and Head of Group Function Sales and Marketing, effective February 1, 2008 (Press release)
Jan Frykhammar was appointed Senior Vice President and Head of Ericsson's Business Unit Global Services, effective January 1, 2008 (Press release)
Bert Nordberg was appointed Chairman of Ericsson Group companies Redback and Entrisphere, effective February 1, 2008 (Press release)
Ericsson was awarded the inaugural China Information Industry Energy-Efficiency Innovation Award from the China Center for Information Industry Development (CCID), a think-tank under the direction of the Ministry of Information Industry (Press release)
In partnership with pan-African telecom operator MTN, Ericsson has kick-started its commitment with The Earth Institute at Columbia University to bring connectivity and telecom services to the Millennium Villages. The first village to receive these services is Mayange, Rwanda, which is now receiving support in healthcare, education and small-business development to empower social and economic growth in the community (Press release)
This white paper describes how efficient network design and new energy-saving techniques can help mobile operators realize 15 to 25 percent in overall energy savings without affecting service quality (White paper).
This white paper describes how modern GSM network architecture enables the cost-effective expansion of mobile voice and data services, enabling many more subscribers on lower incomes to be served profitably (White paper).
For the latest Ericsson white papers, please click here
The new issue of Ericsson Review - which covers the latest Ericsson technology research, development and production achievements - takes an in-depth look at: achieving differentiation and mass-market reach using a single IP Multimedia Subsystem (IMS) architecture; IMS-based community services; the third generation of Java Micro Edition MIDP; the energy-saving potential of BTS Power Savings and the Tower Tube concept for building telecom sites; HSPA Evolution; mobile TV over 3G networks; and Ericsson's User Service Performance Framework (Ericsson Review).
February 5-6 | ||||||
MPLS and Ethernet World Congress Marriott Paris, Rive Gauche, Paris Website | ||||||
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| February 11-14 Mobile World Congress Fira de Barcelona, Barcelona Website | ||||||
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| February 24-28 The Optical Fiber Communication Conference and Exposition (OFC) and The National Fiber Optic Engineers Conference (NFOEC) San Diego Convention Center Website | ||||||
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| February 27-28 FTTH Council Europe Conference Le Palais des Congrès, Paris Website | ||||||
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| March 4-6 CABSAT 2008 Dubai International Convention Center Website | ||||||
| March 12-13 Mobile TV World Summit Olympia, London Website | ||||||
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| March 12-14 IPTV World Forum Olympia, London Website | ||||||
| April 1-3 CTIA Wireless 2008 Las Vegas Convention Center, Las Vegas Website | ||||||
| April 14-17 Packet transport networks MARITIM proArte Hotel, Berlin Website | ||||||
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| April 29 - May 1 Softnet Olympia, London Website | ||||||
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| July 15-18 Broadband World Forum Hong Kong Convention & Exhibition Centre Website | ||||||
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April 25, 2008: Q1 2008 report
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.
February 6 the new standard; 3GPP - TISPAN IMS Multimedia Telephony - enabling fixed and mobile VoIP.
Please note: these topics were correct at the time of sending this newsletter. Please check here regularly for an updated list of scheduled telebriefings.
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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: Peter Olofsson (Global), Kathy Egan, (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 April 25 2008. For further details regarding the quarterly reports, please check here.
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