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Telecom Expansion

Benefits for Operators

With more than 3 billion mobile subscribers today, the big question is how to continue this unprecedented growth and reach the next billion subscribers. We can help you address high-growth markets cost-effectively and profitably so that you can seize on this enormous opportunity.

  • Alternative pricing strategies and lowering the barriers to entry are key ways for you to attract new users in areas that already have mobile coverage.
  • Ericsson Communications Expander provides a flexible range of revenue-management solutions to help you make services affordable and profitable, while keeping costs down and quality high.
  • Mobile communication helps one-person, micro-businesses thrive, which in turn creates new opportunities for telecom business growth.
  • Providing services cost efficiently does not mean you have to cut back on quality when investing in new networks or upgrading existing infrastructure.
  • Operators in high-growth markets are able to deliver services at substantially lower costs than their peers in developed markets thanks to creative business models, new services and cost-effective technology.
Benefits for operators

In brief/In detail

The number of mobile subscribers will reach almost 6.5 billion by 2013. The challenge for you will be to meet the needs of the majority of these subscribers, most of whom will be earning USD 2 per day.

There are ways to increase profits even in markets where average revenue per user (ARPU) is low. Today many operators in high-growth markets have earnings before interest, taxes, depreciation and amortization (EBITDA) of above 40 percent with an ARPU of less USD 10 per month. You must be prepared to operate your services in a cost-effective and profitable way, which requires a focus on total cost of ownership.

Our Coverage Expansion solution, for example, can help you cut the number of sites required by up to 50 percent. Our innovative site solutions have helped operators achieve a 25 percent cost reduction in the number of urban sites and a 48 percent reduction in the number of rural sites.

We have helped operators with site builds completely off the electricity grid and have developed solutions to cut fuel consumption and use alternative sources of energy.

To succeed in high-growth markets, barriers to entry must be addressed, including managing subscriber handling costs; lack of local telecommunications infrastructure; power and transport networks; lack of technical expertise; affordability of handsets; and issues such as regulation and taxation.