Ericsson CEO says IMS is the next step following the successful rollout of 3G

At the 3GSM World Congress in Barcelona, Spain, Ericsson (NASDAQ:ERICY) President and CEO Carl-Henric Svanberg today gave his views on the evolution of the telecommunications industry. "Most 3G networks will be upgraded with HSDPA in 2006, and 3G is now a mass market in steady growth. IMS and all-IP is the next step to fully leverage the opportunities with mobile broadband. IMS will play an equally important role for the creation of multimedia services as HSDPA plays for the speed in the network."

"WCDMA now serves 50 million subscribers, and that number is growing steadily. It is the obvious choice for 3G," said Svanberg.

He underlined that HSDPA marks a significant milestone in the industry.

"If GSM was the beginning of a mass market for mobile telephony, HSDPA marks the beginning of a mass market for high-speed mobile broadband."

Ericsson has a clear lead in this field - most HSDPA networks rolled out today are powered by Ericsson.

Svanberg said the evolution towards all-IP is the next technology step in the telecom world. 

"While HSDPA takes the access network to a new level, IMS and eventually all-IP will take the core network to a new level. The importance of IMS will become even more evident during 2006, when we are accelerating the rollout of services beyond voice and we start to really tap the potential of HSDPA."

Svanberg also addressed the WCDMA Long Term Evolution towards "Super 3G." 

"HSDPA is cutting edge and already has global presence and the necessary economies of scale. And it offers a future-proof evolution path - the standardization of 'Super-3G' is already ongoing."

A new channel for distributing content is created, as mobile broadband capabilities are made possible by the telecommunications industry. Mobile TV is already available in more than 40 networks around the world. Another obvious area is, of course, the distribution of music.

"Mobile broadband opens up plenty of business opportunities and attracts new entrants to our industry. A new telecom ecosystem is emerging, and partnerships will be crucial going forward. The operators will play a key role materializing the opportunities with mobile broadband."

"Ericsson is in a unique position to make this telecom ecosystem work and make our customers even more successful."

Svanberg also addressed the importance of technology leadership: "Our technology leadership gives our customers a first-mover advantage, which is fundamental in this highly dynamic industry."

The right technology also has a huge potential for increasing efficiency. Svanberg explained how Ericsson's cutting-edge offering makes this possible.

"With our mobile softswitch solution, operators can evolve smoothly towards IMS and all-IP, while cutting operating expenses for the core network by with 50 percent - actually cutting them in half."

"And with our new generation base stations operators need 30 percent fewer sites, compared to traditional base stations. The operators grow capacity and bandwidth and minimize the total cost of ownership at the same time."

Transmission is another area in which Ericsson anticipates a greater demand. As operators are rolling out mobile broadband and fixed broadband, the need for transmission capacity is increasing.

"With our strong transmission offering, further strengthened by our acquisition of Marconi, we help operators remove transmission bottlenecks," Svanberg said.

Also during 3GSM World Congress, Kurt Jofs, executive vice president Business Unit Access, spoke about Ericsson's HSDPA leadership and the next-generation radio access technology.

Hans Vestberg, executive vice president Business Unit Global Services spoke about Ericsson's leading role as a Managed Services partner and prime integrator.

Ericsson is shaping the future of Mobile and Broadband Internet communications through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication companies in the world.

Read more at http://www.ericsson.com


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Ericsson is a world leader in communications technology and services with headquarters in Stockholm, Sweden. Our organization consists of more than 111,000 experts who provide customers in 180 countries with innovative solutions and services. Together we are building a more connected future where anyone and any industry is empowered to reach their full potential. Net sales in 2016 were SEK 222.6 billion (USD 24.5 billion). The Ericsson stock is listed on Nasdaq Stockholm and on NASDAQ in New York. Read more on www.ericsson.com.

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