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Fast growing markets ready for 3G
There are more than 100 emerging markets around the world that have dynamically growing telecom sectors. The challenge for operators in these markets is to deliver services for a small but growing segment of advanced users while efficiently expanding their networks to accommodate the low-income mass market.

While systems that deliver advanced packet-based services are not necessarily a priority today, operators in emerging markets are keen to have a clear evolution path towards an efficient all-IP environment. India alone adds 2 million new mobile subscribers per month and has a market of between 200 and 250 million middle-class citizens who have more advanced requirements. Fredrik Alatalo, head of Product Area Mobile Core at Ericsson's Business Unit Systems, says that considering the rate at which emerging markets are growing, operators can benefit greatly from synergies which arise from having 2G and 3G services in the same infrastructure.



Fredrik Alatalo
Vice President of Product Area Mobile Core

"Considering the exponential increase of subscribers and growth in segments demanding advanced services, markets such as India are clearly ready for 3G," Alatalo says. The company's proposition is to give operators in emerging markets the ability to more efficiently deliver their existing services, evolve their networks to provide more advanced services and do it all with the same infrastructure.

 

Softswitching is the most cost-efficient way of creating networks for future growth and new services. Customers who have invested in Ericsson Mobile Softswitch Solution have been able to reduce their core network operating expenses by as much as 50 percent. This is achieved by splitting off the control function into a separate Mobile Switching Center (MSC) server and moving the switching functionality into Mobile Media Gateways (MGws) which are decentralized, more scalable sites further out in the network. Ericsson Mobile Softswitch Solution provides the unique advantage of also supporting an evolution towards IP Multimedia Subsystem (IMS).

 

The introduction of IMS into a network is the critical milestone in the evolution towards an all-IP network. IMS is the domain in which circuit-switched networks and packet-switched networks converge and where IP becomes the primary technology for transport and control. "Ericsson has a massive engagement here and is working together with both fixed and mobile operators on how to introduce IMS into their existing networks. We conduct strategy workshops with customers and are working together with them to move into more efficient operations and at the same time offer an enhanced user experience driving revenues," Alatalo says.

 

"There is still a long way to go for the whole industry before we see an all-IP environment where all traffic, including mobile telephony, runs over IP. There are several phases that mobile operators' networks will go through before they have IP Telephony capabilities. However, the Ericsson Mobile Softswitch Solution is the critical first step, as it brings IP capabilities into the network." Even if an operator is not initially interested in advanced services, there is still a strong business case for choosing the softswitch solution because of the large opex savings in the mobile core.

 

Read more about Mobile Core in emerging markets (pdf)

 

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