Ericsson forecasts 3G technology boom in 2005

BEIJING, China – In preparation for an expected mass market for 3G (third generation) communication technologies by 2005, Ericsson is intensifying its research development and marketing activities worldwide.

This effort has so far netted the company nine licenses for 3G in the Asia-Pacific and aligned product offerings for WCDMA and CDMA2000 – two of the main 3G technologies – into one portfolio.

The Swedish digital mobile communication products manufacturer and service supplier confirms 3G as already a reality in major countries around the world and expects more 3G rollouts by operators to happen in 2004.

In Ericsson’s 2003 Strategy and Technology Summit here last week, its key executives discussed how the company’s technology vision fits market trends characterized by demand for multimedia capabilities.

Toward Multimedia

Describing the present as a "corrective" phase for the industry after the dot.com fizz, Carl-Henric Svanberg, president and CEO of Ericsson, said they have stabilized their choice of 3G standards and platforms, which could help strengthen the market position of their operator-customers.

"We see the industry going into multimedia. We will lead the industry there, both in 3G and ‘Beyond 3G.’ Throughout this, we will focus more on the consumers’ needs. We’re ready for an industry in change," Svanberg said in a statement.

Svanberg added it is Ericsson’s "technology agnostic approach" to redefine the industry by increasing the commonality between its commercial WCDMA and CDMA2000 solutions to achieve one industry 3G portfolio.

Simply put, Ericsson’s 3G solutions can be configured to support WCDMA or CDMA2000 to future-proof operators’ investments.

"We will be able to offer the same industry-leading 3G products to any operator, no matter what 3G technology they select," Svanberg said.

Migration

Torbjorn Nilsson, Ericsson’s senior vice president for marketing and strategic business development, finds the industry today at an inflection point that started with the growth of broadband usage moving toward the development of 3G capabilities.

"Telecoms remains a long-term growth industry… and everything that represents consumer’s consumption we will try to put in our products. We are seeing new business opportunities in industries that are undergoing digitization like the media. It’s important to provide end-to-end solutions while adapting new technologies to users’ (old) behavior and familiarity levels," Nilsson said.

By end-to-end, Nilsson meant having 3G technologies in all places – from the systems, services, handsets to mobile platforms. Svanberg gave assurance that Ericsson covers all of these areas and, to date, has delivered 3G equipment to 27 countries so that it owns 40 percent of the global value contract. Of course, Sony Ericsson delivers 3G handsets, but so will six other providers starting next year, he added.

3G Deployments

"We provide professionally managed services to strengthen our customers’ market position. We offer systems and services for mobile applications, transmission and transport networks and Ethernet broadband access solutions," said Svanberg.

Torbjorn Possne, Ericsson’s vice president and head of system business area WCDMA, said their 3G deployments in the region include 3G trials in China and continued CDMA2000 1x rollout with China Unicom, CDMA2000 1X deployment in India, WCDMA launch in Australia and rollout in South Korea, an EDGE project with CSL Hong Kong, and several CDMA2000 1X rollouts with Indonesian operators.

"Ericsson has been selected by 114 operators in the world for WCDMA. We have made initial shipments to more than 35 operators in 27 countries, and we are the primary supplier to eight out of 10 commercially launched WCDMA networks," Possne said.

Coverage

Ericsson executives estimate worldwide subscription for mobile communications to swell to two billion in five years, with the Asia-Pacific to lead with 495 million, followed by Western Europe with 312 million.

They said the telecommunications market now has 1.3 billion subscribers, with the Asia-Pacific representing over 70 percent of the world’s mobile data subscribers.

Svanberg said Ericsson will continue to develop the GSM market, capture the "next billion market," grow its professional services and help operators launch new 3G services and capture opportunities in the broadband market.

Ericsson’s presence in the region dates back to 1892 when the company first sold its equipment in China, which today has about 257 million subscribers and with five million more being added each month. — Alma Buelva