Mobile phone users could get call rate discounts of up to 99 percent with Ericsson's Dynamic Discount solution

Press release  |  Jun 23, 2009 13:30 (GMT +00:00)

Ericsson (NASDAQ:ERIC) is introducing an innovative, easy-to-use solution that allows users to get discounts on mobile call rates of up to 99 percent based on the network load at their location. Designed in Africa to make communication more affordable for users in low-income markets, Ericsson's Dynamic Discount solution is now generating interest globally.

Ericsson's new solution gives consumers the opportunity to see the discount currently available at their location on their mobile phone's screen in real-time. People using this solution can receive call discounts of up to 99 percent by calling during low-traffic periods. The Dynamic Discount solution is available to any subscriber charged in real-time, whether pre-paid or part of a converged charging system. Consumers can activate the solution by simply punching in a code.

Experiences from different markets have been positive. An African operator reported rapid uptake, with two million subscribers using the service after only two months, corresponding to 60 percent of the operators' total subscribers. At the same time, usage increased by 70 percent.

With operators around the world facing a harsh financial climate and increased competition, the solution is also gaining interest in mature markets.

Jan Wäreby, Senior Vice President and Head of Multimedia at Ericsson, says the innovative solution marks a shift in application development: "The Dynamic Discount solution was created in one of our Innovation Centers in South Africa, and has been launched commercially by 14 operators with great success. We see great opportunities in bringing applications that have been developed in emerging markets to the rest of the world. Operators in mature markets can use these applications to tackle their own financial and competitive challenges."

The Ericsson mobile Innovation Center was founded in 2008 to develop mobile applications focusing on meeting the needs of poor and rural populations. Today, the center is getting global attention as more of its applications are proving suitable and beneficial for mature markets and developed countries as well.

Dynamic Discount solution lets operators discount call rates based on traffic in a particular cell, introducing a completely new way to price telecom services. Operator benefits include reduced churn and network congestion, and increased total revenues from existing network infrastructure investments. Improved quality of service benefits both the operator and the consumer.

Ericsson works continuously with operators to identify business opportunities and develop solutions that address the specific needs of users in emerging markets. Operators addressing this segment face challenges due to low average revenue per user (ARPU), price-sensitive consumers and barriers to entry resulting from price of calls. .

Ericsson's Dynamic Discount solution was named the most innovative solution during the AfricaCom Awards in 2008.
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Ericsson is the world's leading provider of technology and services to telecom operators. Ericsson is the leader in 2G, 3G and 4G mobile technologies, and provides support for networks with over 1 billion subscribers and has a leading position in managed services. The company's portfolio comprises of mobile and fixed network infrastructure, telecom services, software, broadband and multimedia solutions for operators, enterprises and the media industry. The Sony Ericsson and ST-Ericsson joint ventures provide consumers with feature-rich personal mobile devices.  

Ericsson is advancing its vision of "to be the prime driver in an all-communicating world" through innovation, technology, and sustainable business solutions. Working in 175 countries, more than 75,000 employees generated revenue of SEK 209 billion (USD 32.2 billion) in 2008. Founded in 1876 with the headquarters in Stockholm, Sweden, Ericsson is listed on OMX NASDAQ, Stockholm and NASDAQ New York.

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About the Ericsson Dynamic Discount Solution
It has lowered the entry barrier for mobile phone services and has made it affordable for a new segment of low income users who can now afford to use a mobile phone and improve their standard of living. Ericsson Dynamic Discount solution is pre-integrated with Ericsson charging system, the market leading real-time charging system, currently used by more than 155 operators across the globe, and 750 million users. The solution is also proven in multi-vendor environments and can be integrated in an operator's environment with core, radio as well as real-time charging system from other vendors.

About Ericsson in Revenue Management
Ericsson is a leading provider of revenue management solutions. Ericsson helps its customers capture and secure their money streams and leverage business opportunities in the new communications world, by providing expertise and solutions to manage the revenues from traditional to multimedia services. For more information about revenue management and Ericsson's solutions in this field click here