Ericsson’s roadmap to success bears fruit

Ericsson’s roadmap for success is bearing fruit, as what the Swedish telecommunications giant showed off during its Strategy and Technology Summit in Hong Kong recently.

Ericsson president and CEO Kurt Hellstrom was ecstatic, regaling journalists from all over the region about how the company has outpaced its competitors in GSM (Global System for Mobile) Communications and 3G, and has gathered momentum as a stronger, more competitive global firm, amid present market challenges, with its "efficiency program" ahead of schedule and positive operating cashflow.

"Ericsson continues to perform better than the market," said Hellstrom, who also boasted of how the company is "redefining" the handsets industry via its partnership with Japanese giant Sony and via technology licensing.

Its joint venture, Sony Ericsson Mobile Communications, launched last Oct. 1, will churn out mobile multimedia products combining both firms’ expertise. In a "shift from the vertical to horizontal industry," Ericsson is licensing its mobile platforms with core technology to other manufacturers.

A key part of Ericsson’s roadmap to success is the Asia-Pacific region which accounted for 27 percent of its global sales during the first nine months this year, with the major chunks coming from China (49 percent) and Japan (15 percent).

"There’s no doubt that the Asia-Pacific is on the fast lane in mobile telecoms," said executive vice president for Asia-Pacific Ragnar Back.

Back cited the growing opportunities for 2G/2.5 G and 3G development, with stable growth in mobile subscribers and traffic, growing acceptance of new mobile services and content, network upgrades and operators looking for more support from suppliers, especially with end-to-end solutions.

"Ericsson got the largest chunk of 3G business in the region," said Back, reporting that the company has bagged 14 GPRS (General Packet Radio Service) commercial agreements in nine local markets.

Ericsson has also bagged 3G deals with Japan Telecom and NTT DoCoMo, and was contracted as principal supplier by Hutchison Telecommunications for a 3G network in Australia and as sole 3G supplier to Hong Kong’s SmarTone.

Back swore that the Philippines is an "important market" where Ericsson is "eager to expand our business" and has "high expectations for the future."

Robert Etteborn, president of Ericsson Phils., revealed that the company recently signed a deal worth more than $5 million to bolster the capacity and coverage of Islacom’s radio base stations.

Globe Telecom, Etteborn added, has tapped Ericsson for its fraud management system, while Smart Communications has sought support for its remaining AMPS system.

"It will be nice for Smart to have a second supplier for better competitive edge," he quipped.

Depending on macroeconomic conditions, Etteborn believes there’s room for investment in the country whose mobile subscriber base is nearing 10 million, transmitting 110 million text messages in a day.