Ericsson (NASDAQ:ERIC) and Royal Philips (NYSE: PHG, AEX: PHIA), the global leader in lighting, have jointly launched an innovative new connected LED street lighting model. The partnership solves two major issues that cities are facing today: providing citizens with improved network performance in dense urban areas as well as high quality, public lighting that is energy efficient.
Philips and Ericsson combine the benefits of mobile connectivity and LED lighting in a ''lighting-as-a-service'' model for cities. It allows city authorities to offer space within their connected lighting poles to network service providers for mobile broadband infrastructure.
Philips will now offer cities LED street lighting that can include mobile telecoms equipment from Ericsson. Mobile operators working with Ericsson for mobile broadband infrastructure will be able to rent space in the poles. In this way, mobile network operators will be able to improve data coverage and capacity for citizens, resulting in enhanced mobile broadband services. The model also accelerates the payback time for city infrastructure, by making the up-front costs of installing and managing these systems more affordable, so reducing the strain on city budgets.
Philips LED street lighting can generate energy savings of 50 to 70 percent, with savings reaching 80 percent when coupled with smart controls - as validated by a study conducted by The Climate Group in 12 of the world's largest cities. The study also showed that citizens prefer the white light of LED lighting, citing a greater sense of safety and improved visibility compared to the orange glow of traditional high pressure sodium systems.
Ericsson President and CEO Hans Vestberg says: "This is a tremendous solution using ICT and partnerships to address the megatrend of urbanization. City populations are increasing at the rate of 7,500 people per hour, but our world is not geographically expanding. Meanwhile, our ConsumerLab research shows that internet connectivity is one of the top five factors for satisfaction in city life. This Zero Site solution is the kind of innovation that offers a way for people to succeed in the Networked Society."
Frans van Houten, President and CEO of Philips, says: "This new connected LED street lighting model is another example of us bringing the Internet of Things to life and demonstrates the capabilities of light beyond illumination. We are offering lighting as a service that scales with a city's needs and enables city officials to offer their citizens a more connected, energy efficient and safer urban environment, while preserving existing budgets and resources to improve the livability of their city."
To meet the demand for coverage and capacity, mobile operators need to improve, densify and add many more radio cell sites in dense areas. The new connected street light pole, designed to house Ericsson's cutting edge suite of small cell products, offers network operators new possibilities to find the right site location. It will also help to scale the deployment of mobile broadband technology beyond traditional sites - a key enabler for evolving heterogeneous networks.
Ericsson at Mobile World Congress 2014
During Mobile World Congress 2014 in Barcelona, Spain, Ericsson is showing world-leading technology and service capabilities and innovations. We believe that anything that benefits from a connection will be connected, and we lead the way with solutions that drive the development in mobility, broadband and the cloud, creating the foundation for eco-systems and transformation across industries. We are your guide in the Networked Society.
You can find us at MWC in Hall 2, Stand 2S60. Follow us during the event using @Ericsson and @Networked_Soc and join the discussion using #MWC14. Insights from our experts and Networked Society evangelists are also published on our blog during the event.
NOTES TO EDITORS
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Ericsson is a world-leading provider of communications technology and services. We are enabling the Networked Society with efficient real-time solutions that allow us all to study, work and live our lives more freely, in sustainable societies around the world.
Our offering comprises services, software and infrastructure within Information and Communications Technology for telecom operators and other industries. Today 40 percent of the world's mobile traffic goes through Ericsson networks and we support customers' networks servicing more than 2.5 billion subscribers.
We are more than 110,000 people working with customers in more than 180 countries. Founded in 1876, Ericsson is headquartered in Stockholm, Sweden. In 2013 the company's net sales were SEK 227.4 billion (USD 34.9 billion). Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ, New York stock exchanges.
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About Royal Philips
Royal Philips (NYSE: PHG, AEX: PHIA) is a diversified health and well-being company, focused on improving people's lives through meaningful innovation in the areas of Healthcare, Consumer Lifestyle and Lighting. Headquartered in the Netherlands, Philips posted 2013 sales of EUR 23.3 billion and employs approximately 115,000 employees with sales and services in more than 100 countries. The company is a leader in cardiac care, acute care and home healthcare, energy efficient lighting solutions and new lighting applications, as well as male shaving and grooming and oral healthcare. News from Philips is located at www.philips.com/newscenter.
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