Ericsson strategy – Global trends for local markets Torbjörn Nilsson Senior Vice President, Strategy & Product Management
Key industry trends Econom...
Mobile & Broadband (Triple Play) & Emerging markets the Growth Opportunities (2005-2010) New Mobile Subscriptions (>1,6 billion active subscriptions) India 10%
New Mobile Voice Traffic (>7 Tera Minutes)
NAM 6%
India 14%
LAM 15%
NAM 18%
China 16% WE 7%
New Broadband Subscribers (328 mil.) NAM 19%
China and India 32%
LAM 5%
LAM 7% China 24% WE 12%
Rest of APAC 14% Rest of APAC 10%
CEMA 32%
~85% in emerging markets!
Rest of APAC 12%
CEMA 15%
Concentrated to US, China & India
WE 25% CEMA 7%
Concentrated in NA, WE & China
Source: Ericsson Strategic Forecasts 2005 (Base Case) 3
2005-09-7
Triple Play Home
Mobile
Office
Telephony WWW @ TV
4
2005-09-7
Spendings on Broadband Services key to success VoIP, IP-TV, Corporate data, Premium content & performances
$
Broadband,Internet Access
Classical telephony including Narrowband Internet
Now 5
2005-09-7
High interest for VoIP and Triple Play % of operators considering most important new services in 2004 50%
Worldwide (314 respondents)
45%
45%
Europe (86 respondents)
40%
APAC (33 respondents)
35%
32%
30% 25% 20%
27% 24%
29%
28%
23% 19%
17%
15%
12%
10% 5%
3% 3%
0% Enhanced BB
VoIP
Triple Play
Video (stand alone)
Source: Heavy Reading 2004 6
2005-09-7
Broadband everywhere
7
2005-09-7
Convenience and flat rate accelerate Mobile usage & New Opportunities Mobile broadband opens up for more advanced services; - Video / Music / TV - Download / Push content - Enterprise 3G 2G Charged by traffic
M
i ob
le
le ir p T
ay l P
+ G 3
Data & voice traffic increases dramatically
Flat rate and bucket charging
8
2005-09-7
Introduction of Mobile TV Recent announcements for planned or ongoing trials/launches Italy
W. EUROPE Sweden
USA
Austria
France
TeliaSonera FT/Orange Bouygues T-Mobile Vodafone 3 – La Tua TV TIM NRK
3MobileTV
AMERICAS ASIA-PAC
Sprint TV Cingular - MobiTV Verizon Telefonica Movil
KDDI – EZ Channel SK Telecom Korea Telecom 3 Optus
Source: Public Sources, March 05 9
2005-09-7
3G / WCDMA uptake Japan
35
Italy UK Germany Australia Austria
30
USA UAE Switzerland
Million WCDMA subscriptions
25
Sweden Spain South Africa Slovenia
Japan
20
Singapore Portugal Poland Norway
15
Netherlands Mauritius Luxembourg Latvia
Italy
10
Korea Israel Ireland Hong Kong Guernsey
UK
5
Greece France
0 7/2004
Finland 8/2004
9/2004
10/2004
11/2004
12/2004
1/2005
2/2005
3/2005
4/2005
5/2005
6/2005
7/2005
Sources; EMC estimates 10
2005-09-7
Denmark Bahrain
Next Generation Networks a transformation to new communication architecture and business models Today’s Single-Play service networks
Converged Multi-media services network
Starting Triple-Play service per network
Cable TV TV
Data/IP
Wireline
Wireless
Content
Application Multi-Media Services
Services
Services
Services
IMS
IMS
IMS
3G
xDSL/GbE WiFi/Max
Cable
Multi-Media & Telephony Control (IMS with Mobility)
Connectivity/ Packet Backbone Network
Connectivity
Multi-Access Networks
11
2005-09-7
Ericsson in Growth Opportunities Innovate & Stimulate markets
Revenues & Value chains
Increase usage
• Triple Play / New Services (IP/IMS/SoIP) • More Bandwidth / Capacity / Coverage / Simplicity, etc. • New Business Models (Managed Services, end-user services, convergence, mobile enterprise, etc.) • Regulation (Spectrum / VoIP / IPR / DRM)
Current Markets & Products
Attract new users/things Increase Penetration
• Low total cost models (Expander/Softswitch) • Several subscriptions (>100% penetration) • Emerging Markets (well positioned)
Users/ Things
3 billion 12
2005-09-7
Lower Total cost of Ownership or more coverage with fewer sites
Expander
30-50% reduction of number of sites reduces total cost with CAPEX: -30% and OPEX: -30% 13
2005-09-7
Ericsson leading in Softswitch & IMS Solutions (21+ Mobile & 35+ Fixed deployments & 27 IMS agreements), (lower core Network OPEX up to 50% & New Multi-media Services) Classic Switch Solution
Ericsson Softswitch Solution Server (MSC, TeS, IMS)
Classic Switch
(Control)
(control and switching) MGW
Classic circuit-switched network
Mobile Media Gateway (Switching)
Layered Architecture network Control Layer Connectivity Layer MGW MGW
TDM
MGW 14
MGW
IP
MGW 2005-09-7
Ericsson leads the evolution into Mobile Broadband 2003/4
2005/6
2007/8
2009/10
2011/12
”Super 3G” Up to 100 Mbps
MBMS HSUPA
Multi-, broadcast Multimedia service
Upto 5 Mbps
HSDPA Upto 14 Mbps
WCDMA 0,5 Mbps 15
2005-09-7
Ericsson providing a new High Performance Broadband (IP) Best Effort Single ATM Play No QoS/Concentration
