Querubin J. Minas Saudi Gazette JEDDAH – As the number of people worldwide using Internet rises exponentially to above 2.4 billion – with fixed broadband subscriptions more than doubled over the past five years to reach an estimated 591 million in early 2012, and mobile cellular subscriptions surging to 6 billion – the pace of broadband revolution is fast unfolding. Against this backdrop, increasing competition among different mobile broadband technologies is pressurizing mobile operators to innovate in terms of service packages and pricing. Ericsson, a leading provider of telecommunications equipment, data communication systems, and related services covering a range of technologies including mobile networks, and by mid-2012, the world's largest mobile telecommunications equipment maker with a market share of 38 percent, and the inventor of Bluetooth technology, has a major role in the development of the new era. In KSA alone, Ericsson's presence dates back to 1978 when it received what was Sweden's largest export order at the time. The assignment called for increasing capacity in Saudi Arabia's telephone network by more that 200 percent and installing the new computer-controlled AXE system. The fact that the AXE could also be used for mobile telephone traffic meant that the Saudis wanted a mobile telephone network installed, too. Ericsson therefore installed a network based on the newly developed Nordic Mobile Telephone (NMT) system. The deal marked Ericsson's first partnership in the Kingdom and since then Ericsson has continued to expand its presence in the Kingdom, Ali Eid, President of Ericsson, Kingdom of Saudi Arabia, said in an interview with the Saudi Gazette. Ericsson's relationship with Saudi Arabia includes a number of successful partnerships with the Kingdom's leading telecommunications operators. “The company has played an important role in expanding the country's mobile network infrastructure and modernizing operator systems,” he added. He said Ericsson believes that “we are on the brink of an extraordinary revolution that will change our world forever. In this new world, everyone, everything and everywhere will be connected in real time and we envision that by 2020, there will be more than 50 billion connected devices. We call this the Networked Society, and it will fundamentally change the way we innovate, collaborate, produce, govern and achieve sustainability. At Ericsson we use innovation to empower people, business and society. We envisage a Networked Society that is sustainable, and where everything that can benefit from a connection will have one. Our mobile and fixed networks, multimedia solutions and telecom services make a real difference to people's lives, and the world we live in. All our services and solution are developed with this in mind and I believe that sets us apart. We also recognize that in order to be successful in the ICT industry you need to work together with customers and ensure that there is a continuous dialogue maintained so that our solutions meet their every need.” Eid stressed that Ericsson will continue to support the Kingdom's blossoming ICT industry in an effort to move toward a truly Networked Society. Asked about its role in fostering sustainability amid a fast changing telecommunications environment, Eid said Ericsson is banking on its competence, solutions and innovation to tackle global challenges and empowering people, business and society to help shape a more sustainable world. “In the Networked Society, Ericsson is the leading advocate of Technology for Good. By using broadband, cloud and mobility to address poverty, education, health, human rights, climate change and other challenges, we work to ensure that our technology is a force for good and lasting change,” he said. Moreover, he said sustainability is central to Ericsson's core business and “our commitment to the triple bottom line of responsible financial, environmental, and socio-economic development. Our approach to sustainability seeks to heighten our positive impact and minimize negative impacts. Conducting business responsibly through high standards for business ethics is a top priority. We believe this approach delivers new business opportunities, more efficiency, less risk, greater brand value, market leadership and attractiveness as an employer.” In the midst of competition and challenges, he said Ericsson identifies six sales categories deemed as the company's engagement practices in the Middle East. Eid explained that regardless of the current “political climate”, there is a strong demand for mobile telecommunication services. There is a strong requirement to have the mobile Internet “on the handset”. “Therefore, the six sales categories (Mobile Broadband, Managed Services, Communication Services, Fixed Broadband & Convergence, Operations and Business Support Systems, Television and Media Management) are key enablers to make the mobile Internet a practical and viable reality.” Ericsson, he said, believes in the potential of this region. Having been present in the Middle East for more than 120 years, the Swedish firm remains positive that the economy will continue to improve and that investors will feel the stability needed to run their businesses within the region. On major obstacles it encounters in expanding its network in the Kingdom, Eid said “each country has its particular requirements and challenges and we look at those challenges as opportunities rather than barriers. Our strategy has always been to leverage global presence and scale as well as technology and services leadership, in order for Ericsson to continue to be the prime driver in the telecom industry. We are committed to ensuring that our customers' telecommunications technology and service needs are met and that they are well equipped to face the industry's challenges and respond to the changes currently taking place.” On the issue of competition, he said Ericsson's track record and solutions can “speak for our position within the industry. Globally, more than 40 percent of the world's mobile traffic passes through Ericsson networks and the networks we support for operators serve more than two billion subscriptions. Additionally, the networks we manage for operators serve more than 700 million subscribers. We have approximately 50,000 service professionals who support our customers in more than 180 countries. We also have 27,000 patents, comprising one of the industry's strongest portfolios. I'm sure these numbers speak volumes for our capabilities and the position of trust we have earned for ourselves within the industry.” In the Kingdom, each project of Ericsson has a unique set of challenges, he noted. “However our services are quite flexible and adaptable to the customer's specific needs, that coupled with our local expertise has allowed us to implement projects in partnership with our customers that have proven to be quite successful.” “We, for example were chosen by Saudi Telecom Company to be among the main providers responsible for the deployment of its Long Term Evolution (LTE) network, including the group's operations in Saudi, Indonesia, Malaysia, Bahrain, Kuwait, South Africa and Turkey. Utilizing Ericsson's leading end-to-end LTE/4G solution, STC will be able to provide customers with the most modern services; activation of multimedia applications such as streaming videos, chatting, cloud services, conferencing, and run “High-Definition” applications. A contract was also signed with Mobily for 3G to cover the Haj pilgrimage which was a great success in its significance of delivering the best telecommunication services to the pilgrims, noting that the speed of coverage for Mobily's 4G network reached 1800 MHz in the city of Jeddah. Given the technology of Long Term Evolution LTE Fourth Generation LTE/ 4G, STC and Mobily's subscribers will enjoy mobile broadband services along with the availability of high-speed data in various parts of the Kingdom. The technology of LTE/4G, designed to transfer larger amounts of data efficiently, is the more advanced information and communication technology for telecommunication companies in today's world, and without a doubt, this will allow STC and Mobily to respond to their subscribers' increased demand for new and innovative mobile broadband services.” Moreover, Ericsson is also at the forefront of building sustainable green solutions. Eid said Ericsson applies a holistic approach to energy-efficient network design. State-of-the-art fixed and mobile networks are designed for energy efficiency, as well as reduced need of maintenance and site visits. “In a typical radio access network, up to 90 percent of the energy is consumed in the radio base stations. Ericsson has increased 3G energy efficiency by 85 percent in base stations over the last decade, while continuing to meet bandwidth demands without increasing energy consumption per subscriber.” We offer a variety of energy-efficient products, solutions and services to help our customers reduce their environmental impact and also reduce the footprint of our own activities. Several customer cases illustrate the impact. Ericsson's solutions on node, site and network level are helping to minimize the power consumption while maximizing traffic. Besides, Ericsson is now focusing on having solutions that are orientated toward an eco-friendly environment. Having a smaller equipment footprint, consuming less power and reducing the dependency on traditional fossil fuels are some examples of how Ericsson's leading edge solutions align with the growing awareness of an eco-friendly solution. Aiming to optimize the energy efficiency of mobile networks and deploy solutions that reduce environmental impact and lower operational costs, Ericsson partnered with the operators in Saudi to deploy Ericsson Tower Tube in different locations across the Kingdom, he said. “Ericsson's sustainable Tower Tube technology is an environmentally friendly solution replacing the traditional towers. The Tower Tube also takes up less space on the ground, saving land space thus reducing costs further.” And in a manifestation of Ericsson's commitment to advancing the technological knowledge in Saudi Arabia, Eid said “we have established Ericsson Learning center/Training center in Saudi Arabia, which allows us to ensure that the right knowledge is transferred within our industry. In addition to this, we run training programs for our customers and partners as well as our employees. We also foster knowledge through summer training programs for students from Saudi technical institutes, as well as running graduate programs in collaboration with some of the best universities in the Kingdom.” In its pursuit for excellence, Eid said “relevant and continuous investments in R&D continue to be essential for Ericsson.” “To keep its technology leadership, Ericsson invested SEK32.6 billion in R&D in 2011. This compares with SEK29.9 billion in 2010, including all technology areas, Ericsson holds a total of 27 000 granted patents and employs more than 18,000 people in R&D units spread over 17 countries. In 2011, Ericsson received Informa's LTE Award at LTE World Summit in Amsterdam for best contribution to R&D for LTE…this in itself is a testament to how essential R&D is to our industry,” Eid pointed out.
