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Ericsson Telephone Company - Communications Equipment - Category Main Page
+46 8
719 00 00
Torshamnsgatan 23
Kista,
Sweden.
www.ericsson.com
Ericsson USA contact info:
972-583-0000
6300
Legacy Drive
Plano, Texas 75024
www.ericsson.com/US
Sales
$16
billion
Business Description
We are an international leader in the development and supply of end-to-end
solutions to network operators for mobile and fixed line communications. We
supply the infrastructure that enables telecommunications and provide our
customers with services for network operations and revenue generation. Our
claim of market leadership in mobile systems is based on our reported sales
and how they relate to the publicly reported and estimated mobile system
sales of our main competitors. Statements from industry and financial
analysts also support our estimates.
Through our Sony Ericsson Mobile Communications joint venture we offer a
range of mobile handsets, including those supporting multimedia
applications, and other personal communication devices. We also offer mobile
platform technology for handset manufacturers and a variety of technology,
equipment and services for private enterprise networks as well as for
special applications such as radar, cables and mobile devices.
We
divide our operations into three business segments:
• Systems consisting of a three-pronged business approach: Mobile Networks,
Fixed Networks and Professional Services;
• Phones (through the 50/50 joint venture with Sony which is reported
according to equity method under joint ventures and associated companies);
and
• Other Operations which comprise a number of small operations including
Defense Systems (Microwave Systems), Network Technologies, Enterprise
Systems, Mobile Platforms and Technology Licensing.
Mobile Networks
We provide mobile systems solutions to network operators that enable
reliable, efficient and cost effective wireless networking. Sales of
wireless network equipment and associated network rollout services account
for more than two-thirds of our net sales. Wireless networking refers to
communications networks that allow users (either consumers or machines) to
send and receive voice and data communications using mobile handsets or
other wireless devices.
Each generation of wireless technology is associated with a group of
international standards for wireless communications networks. Transitioning
from one generation to the next, such as from 2G to 3G, requires network
operators, equipment suppliers and mobile handset manufacturers to adopt new
and emerging technology standards. We believe that the migration from basic
voice services to mobile multimedia services is the primary technological
shift facing today’s wireless network operators.
Our expertise in all major 2G standards and our role in developing 3G
standards allow us to offer mobile telecommunications systems that
incorporate each of the major 2G, 2.5G and 3G mobile technology standards.
As a result, we are able to offer tailored solutions to a network operator
regardless of the existing standard used in its network.
By offering comprehensive upgrade paths for migrating to
high-speed/high-capacity networks, we allow maximum use of existing
equipment and previous investments, thereby improving network operators’
capital investment returns. We believe that our ability to meet the diverse
technology needs of our customers with high value-added solutions has been
instrumental in our becoming a leading supplier of mobile telecommunication
systems, including 2G, 2.5G and 3G.
Our systems offering includes radio base stations, base station controllers
and radio network controllers, mobile switching centers, service application
nodes and other nodes for billing and operations support.
Radio base stations provide access and interconnection between mobile
handsets and the mobile network. We offer a complete portfolio of radio base
stations ranging from small pico cells (i.e., small cells in a mobile
network that boost capacity and coverage within buildings) to high capacity
macro cell applications. Our installed base of GSM radio base stations
represents more than one third of all GSM radio base stations in service
globally. A central feature of our 2G GSM radio base stations and base
station controllers is their ability to be upgraded on a cost-effective
basis to enable 2.5G GPRS and 3G EDGE transmissions.
Another important element of radio access networks is base station
controllers, which manage the traffic between the radio base stations and
mobile switching centers. Base station controllers, in conjunction with
mobile switching centers, effect call handovers between radio base stations
as subscribers move between cell sites while engaged in a voice call or data
transmission.
The core network nodes that connect radio access networks with other parts
of the network are called mobile switching centers. Our switching systems
and base station controllers are built from common platforms. Like our radio
base station products, our mobile switching center products have
industry-leading scalability and capacity.
We are also a leading supplier of microwave radio links that can be used to
backhaul the traffic between radio base stations and base station
controllers as well as between base station controllers and mobile switching
centers. Wireless backhauling (i.e., transporting data and voice from a
network access point to a central switching point in mobile systems) with
microwave radio links reduces the need for the operator to lease
transmission capacity from fixed network operators resulting in significant
cost savings for the wireless operator. A new generation of microwave
transmission systems is now being introduced with expanded capacity to
support the increased traffic demands of Mobile Internet and 3G, as well as
to serve the market for wireless broadband access to fixed networks.
Our mobile systems offering extends beyond assisting network operators in
optimizing and upgrading system functionality. We also offer a suite of
Mobile Internet services and applications that enable network operators and
content providers to bring messaging, personalization, information,
entertainment, location-based and m-commerce services to consumers. We have
also established Ericsson Mobility World, a global network of regional
centers and local web-based facilities. This open industry-wide initiative
is a growing network of more than 100,000 registered technology
professionals from a diverse base of companies, working in partnership
toward successfully implementing the Mobile Internet.
Fixed Networks
Fixed network operators are moving from single-service networks toward new
multi-service networks that have the ability to simultaneously handle
multiple services, such as voice, text and images. Offering these services
requires fixed operators to migrate from existing circuit-switched networks
to packet-switched networks.
We have a long history in fixed-line networking with an installed base of
access and transit lines equivalent to 160 million lines or approximately 10
percent market share globally. We supply fixed network operators with
systems solutions that allow them to upgrade their legacy networks to more
efficiently handle a mix of voice, data, video and Internet traffic. Our
solutions for multi-service networking include systems and services for
circuit switching, next generation (packet-switched) networking and
broadband (i.e., a channel with more than two megabits per second of
bandwidth). These solutions enable network operators to replace multiple
networks with a unified multi-service network capable of handling all of
these services.
The primary systems and services we offer for multi-service networking are
our AXE solution and our ENGINE solution. Our circuit-switched solutions are
based on an open architecture communication platform that is a common basis
for both our fixed and mobile systems. AXE systems have been deployed in 135
countries, connecting more than 500 million fixed and mobile subscribers.
Our proprietary ENGINE solution is the world’s leading solution for
upgrading narrowband circuit-switched networks to broadband packet switched
networks. Migration to a packet-based network is a necessary step in order
to combine broadband Internet, voice and data traffic into one multi-service
network rather than three separate networks.
Similar to our mobile network offering, we offer a suite of network services
and applications that enable network operators to provide a range of
services such as free-phone, virtual private network, Voice over IP and
billing.
Professional Services
Global Services plays an important role in our business and in total
represents about one-fourth of our net sales. We offer a comprehensive range
of professional services to support network operators. These services
accounted for 16 percent of our net sales in 2003 and include advisory,
integration and management services. Our services organization has technical
knowledge to support fixed networks, data (IP and ATM) and all major mobile
network technologies.
Network operators are reducing operating expenditures by optimizing the
operation and maintenance of their existing networks. As a result, many
network operators are increasingly outsourcing network design, operations
and maintenance activities. Our comprehensive portfolio of services can be
customized or sold in packages to meet the needs of existing and new network
operators. We have established the following broad categories of service
areas to reflect this trend.
Advisory services
We provide consulting services to network operators for business planning
and development, design and optimization of networks and the introduction of
new services. Our global competence development program is designed to
provide network operators with training and education to improve staff
competency and develop skills in new technology areas.
Integration services
Telecommunication networks require very high quality of service. Expressions
such as “telecom grade” or “carrier class,” indicate that service in
principle is uninterrupted. Down time per year is normally less than 5
minutes. This is different from so called “best effort” standards used in
the data communications industry. In this context, systems integration of
various elements from multiple vendors is critical for overall network
performance.
We provide services designed to help network operators implement new
technologies and applications in a rapid and cost-effective manner in their
increasingly technically complex networks. This area is comprised of
solutions for the rollout of new networks, integration of end-user
applications or migration from one network standard to another such as from
2G to 3G.
Managed services
We have the ability to assume full responsibility for network operations and
are a leading supplier of managed services. We are currently operating a
significant number of mobile and fixed networks on behalf of operators
around the world. Our portfolio of management services is designed to assist
network operators to provide uninterrupted service and operate their
networks efficiently. It also includes solutions for managing service levels
by providing customers with technical assistance, system maintenance and
repair and return.
Phones
Sony Ericsson Mobile Communications
In October 2001, we formed Sony Ericsson Mobile Communications as a 50/50
joint venture with Sony Corporation. Our partnership with Sony allows us to
leverage our knowledge of mobile telecommunications technologies and their
expertise in consumer electronic devices and multimedia technology.
Sony Ericsson provides a full range of mobile handsets and also allows us to
monitor the requirements and preferences of the consumer market for mobile
handsets. We see this as an important driver for our mobile systems business
and supports our ability to provide end-to-end systems to our customers.
In January 2003, each partner invested an additional EUR 150 million to
strengthen the balance sheet of Sony Ericsson.
In June 2003, Sony Ericsson changed their strategy of broadly addressing all
market segments and standards and instead decided to focus exclusively on
products for GSM/EDGE/WCDMA globally and models for the Japanese market.
This enabled the joint venture to consolidate their operations and
significantly reduce costs. We believe the strategy was successful as Sony
Ericsson is now generating operating profits and has started to regain
market shares within their targeted segments, especially in the higher-end
segments for camera handsets with color screens.
Other Operations
This segment principally consists of a number of small operations deemed too
small to be reported as separate segments. Sales of Other Operations, in
total, represent less than 10 percent of net sales. Other operations include
Mobile Platforms, Technology Licensing, Enterprise Systems, Defense Systems,
Network Technologies and other miscellaneous units. Several of these
operations are in an investment phase with an expectation of future growth
and eventual contribution to our operating profit.
Mobile Platforms
Our Mobile Platforms unit offers technology based on our comprehensive
intellectual property portfolio to manufacturers of mobile handsets and
other wireless devices. By licensing our technology and platforms, third
party mobile handset and wireless device manufacturers can launch new
products with limited R&D investments and can focus on product
differentiation such as applications, industrial design, distribution and
branding. We currently provide mobile platform products to more than 10
mobile handset suppliers, including our Sony Ericsson joint venture.
Ericsson Technology Licensing
Ericsson Technology Licensing provides Bluetooth solutions to many of the
world’s largest consumer device manufacturers. We helped found the Bluetooth
Special Interest Group (SIG) and were the first company to put Bluetooth
consumer products into mass production. Based on technology initially
developed by us in the early 1990’s, Bluetooth is now a universal low-power,
low-cost radio standard that enables stationary and mobile devices to
communicate wirelessly at short ranges.
Enterprise Systems
Our Enterprise Systems unit provides mobile communications systems and
services that enable businesses, government entities and educational
institutions to have seamless access to applications and services across
multiple locations. We focus on providing mobile solutions such as Voice
over Packet based PABX, wireless local area networks (WLAN), and Mobile
Intranet solutions such as our Mobile Office.
Microwave Systems
Our Microwave Systems (aka Defense Systems) unit supplies advanced airborne,
terrestrial and marine radar systems. Versions of Ericsson defense systems
are operational in Sweden and more than 20 other countries.
Network Technologies (Cables)
Our Network Technologies group provides a full range of solutions that
integrate copper and optical cables and power networks. A large portion of
net sales from our Network Technologies group is attributable to
intersegment sales.
Communications Equipment Companies in the Directory
Alcatel
Avaya
Lucent Technologies
Ericsson
Harris Corp.
Marconi
Nortel Networks
Siemens
Tellabs
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