Christian Hedelin, head of strategy at Market Unit South East Asia, says: "Ericsson and the mobile industry have played a key role in the expansion of mobile voice services in the region." As a reflection of these efforts there are 260 million mobile subscribers in Southeast Asia today, and the figure is growing by 6 million subscribers a month. In five years, penetration is expected to exceed 60 percent.

However, there are only 5 million broadband subscribers in Southeast Asia, and there is a huge pent-up demand for the service throughout the region. Out of the 25 million households with a PC, more than 20 million have no internet access. The main challenge here is last-mile access.

Hedelin says: "We believe that with the cost-efficient technologies we have today, we are able to bring broadband to cities, suburbs and rural areas alike at affordable prices. This is all thanks to the technical advances made in the radio interface as well as in the core and transport network.

"In fact, we predict that in five years the number of households with PCs will double, and that 80 percent of these will have a broadband connection. The majority of broadband subscribers in Southeast Asia will have a wireless connection, given the lack of high-quality fixed lines in many areas. Operators already started to use Ericsson HSPA in 2006 to offer residential broadband in many of our markets."

In metropolitan areas such as Singapore, Kuala Lumpur in Malaysia, Bangkok in Thailand, Manila in the Philippines and Jakarta in Indonesia, the demand for optical access and transport will remain in focus for the coming years.

Governments and regulators throughout Southeast Asia have acknowledged the importance of broadband for economic growth and started several national broadband initiatives to drive take-up, such as the allocation of additional spectrum, and tax discounts on PCs and broadband equipment.

Hedelin says Ericsson is playing a leading role in helping operators launch affordable broadband services by utilizing the company's technology leadership, which has been strengthened with the recent acquisitions of Entrisphere, Redback and Marconi. And operators are able to deploy these services quickly and cost-effectively thanks to the sheer scale of Ericsson and its skill in delivering professional services.