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Ericsson Expander makes the future mobile

February 19, 2004

You may think they're everywhere, but only one in five people in the world today has a mobile phone subscription. The majority of people in emerging markets do not have them, and even large parts of the USA's rural regions are still without mobile coverage.

But thanks to Ericsson's Expander solution for GSM/EDGE and CDMA2000 networks, people in places like the rural US may be in for a pleasant surprise. The solution makes it not just cost efficient, but also profitable, for operators to build networks in such regions.

 

Björn Samuelsson, vice president product management for GSM and head of the Ericsson Expander project, says: "Current research indicates that mobile subscriptions will grow by another 1 billion by 2008. We think the opportunity could be even greater because of this solution.

 

"Expander is tailor-made to support high growth in mobile telephony. It will allow operators to reach parts of the market they haven't been able to tap into before."

 

Enhancements in every part of the network
The Ericsson Expander solution is the result of efforts within Ericsson to find ways to meet operators' demands for more cost-efficient coverage and capacity solutions, especially when targeting lower-spending segments of the population. The solution involves enhancements in every part of the network, from the core, to the service layer, to the access side.

 

Some of Ericsson's competitors have tried to provide low-cost alternatives by making cheaper radio base stations with less functionality. Ericsson, however, has made better radio base stations that can cover a greater area.

 

This way, the same high quality of coverage is guaranteed, but the operator saves by having fewer radio sites. Operators using competitors' equipment may also find that it pays to change over to the Ericsson Expander solution because of the lower overall cost.

 

But providing cost-efficient coverage is not just about base stations. In order to support high growth markets that can be as high as 95% prepaid, new end-user services are also needed. Access to low-cost terminals is required, as well as more efficient pre-paid and charging solutions.

 

No need for separate billing systems
Ericsson Expander is also targeting these areas. Ericsson has developed a charging solution that works for pre-paid and post-paid customers, eliminating the need for separate billing systems.

 

The Ericsson Expander solution is now making it possible for operators around the globe to reach a wider market. The solution has benefits for all types of high-growth markets, including China, Central Europe, Africa, Latin America and the Middle East, as well as the rural US.

 

"If you manage the network in a cost-effective way, you can be profitable with even lower spending subscriber segments, so the total addressable market is much greater," Samuelsson says.

 

Ericsson will be presenting its Expander solution at the upcoming 3GSM World Congress in Cannes later this month.