CEO sees markets beyond traditional telecom
(Thomson Reuters ONE) -
* Determined to grow faster than market in traditional segments
* Addressable market valued at USD 350 billion
* New customer segments to address
Today at Ericsson's (NASDAQ:ERIC) Capital Markets Day in Stockholm, President
and CEO Hans Vestberg made remarks on the telecom industry and Ericsson's
position.
"We have just seen the beginning of the massive data growth, driven by
smartphones and other mobile devices. These new devices provide operators with
new charging capabilities. As a consequence, we are beginning to see signs of
changed operator tariffs and pricing models aligned to consumer needs,
especially for mobile broadband services and data usage. It's important for us
to follow this development," Vestberg said.
Ericsson estimates show that the number of mobile broadband users will increase
from today's 400 million to 3.5 billion in 2015.
"These fundamental industry drivers require operators' to focus on network
quality and efficiency. In addition, in the developed world, where the networks
have been up and running for quite a long period, we will see operators
modernize their infrastructure not only to meet increased data usage, but also
to reduce power consumption and use frequencies better. These are challenging
operations, requiring deep technology understanding and services capabilities as
well as insights on advanced business support systems and understanding of
consumer needs in order be successfully performed."
Vestberg continued by stating that the operator environment is becoming more
complex in competition for consumers who are becoming increasingly advanced and
demanding.
"We will see new business models emerging and so called coopetition among
operators, where they will share platforms and build scale together around
applications."
Vestberg, who took on the position as President and CEO as of January 1, 2010,
continued by elaborating on Ericsson's industry leading position in mobile
networks, services and multimedia as well as platforms and handsets via the
joint ventures ST-Ericsson and Sony Ericsson. Vestberg said that converged
networks is an area where the company intends to continue investing.
"We see good long-term growth opportunities in our traditional segments and we
are determined to further strengthen our position and continue to grow faster
than the market. Less than 5% of the world's population has access to 21 Mbit/s
or more in the air, at least 1.5 million installed GSM radio base stations must
be replaced and in addition we see continued need for services in fields such as
consulting, system integration and managed services. We estimate that our
addressable market, including joint ventures, is worth USD 350 billion."
"However, we are not satisfied with our position today and we see new markets to
address. The capabilities we have in place today enable us to address customers
also beyond traditional telecom operators such as cable and TV-companies,
governments, healthcare, transport and utilities. These are industries where
there is a huge need for telecommunication services," Vestberg stated.
Vestberg was also joined by Mr. Manoj Kohli, CEO of Bharti Airtel. Mr Kohli
attended via a video link from India and elaborated on the challenges Bharti
meets in India where the number of mobile subscriptions grow by 20 million only
in March, making India the fastest growing market in the world.
Mats H Olsson, head of Ericsson in China and North East Asia as well as Angel
Ruiz, head of Ericsson North America, also joined via video link.
"Mainland China added more than 100 million subscriptions last year and we
expect similar numbers in 2010", said Mats H Olsson. "Non-voice revenues now
make up 30% of Chinese operators' total revenues and one of our focus areas for
this year is deployment of TD-LTE in China and LTE in Japan and Korea. We also
see further opportunities to increase our GSM footprint in mainland China".
"We have taken every LTE-contract announced in North America and with the
acquisition of Nortel we now have access to 50% of the market we couldn't
approach previously. We take nothing for granted, but we are ready to move to
the next level and achieve even greater market leadership", said Angel Ruiz,
Other Ericsson executives on stage were: Executive Vice President and CFO Jan
Frykhammar, Chief Strategist Douglas L Gilstrap, Chief Technology Officer Håkan
Eriksson, Executive Vice President and head of business unit Networks Johan
Wibergh, head of business unit CDMA Mobile Systems Rima Qureshi, head of
business unit Global Services Magnus Mandersson and head of business unit
Multimedia Jan Wäreby.
Follow the live web cast of the capital markets day on:
www.ericsson.com/investors
www.twitter.com/ericssonpress
NOTES TO EDITORS:
Bio and photos of Ericsson Group Leadership Team
Read more about the joint ventures Sony Ericsson
Our multimedia content is available at the broadcast room:
www.ericsson.com/broadcast_room
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 2 billion subscribers and has the
leading position in managed services. The company's portfolio comprises 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 being the "prime driver in an
all-communicating world" through innovation, technology, and sustainable
business solutions. Working in 175 countries, more than 80,000 employees
generated revenue of SEK 206.5 billion (USD 27.1 billion) in 2009. Founded in
1876 with the headquarters in Stockholm, Sweden, Ericsson is listed on OMX
NASDAQ, Stockholm and NASDAQ New York.
www.ericsson.com
www.twitter.com/ericssonpress
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www.youtube.com/ericssonpress
FOR FURTHER INFORMATION, PLEASE CONTACT
Ericsson Corporate Public & Media Relations
Phone: +46 10 719 69 92
E-mail:media.relations(at)ericsson.com
Ericsson Investor Relations
Phone: +46 10 719 00 00
E-mail:investor.relations(at)ericsson.com
UPCOMING EVENTS
Ericsson Business Innovation Forum, Shanghai, China, May 17-18
For more information please contact the Ericsson Media Relations Team.
[HUG#1412069]
Press release PDF May 05, 2010: http://hugin.info/1061/R/1412069/364396.pdf
Unternehmensinformation / Kurzprofil:
Datum: 05.05.2010 - 12:06 Uhr
Sprache: Deutsch
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