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									                                                                                  PRESS RELEASE
                                                                                       15 December 2011




SOUTHEAST ASIA AND OCEANIA IN
2012: ERICSSON’S TOP PREDICTIONS
FOR THE TELECOMMUNICATIONS
INDUSTRY
       Ericsson shares its top ten predictions for the Southeast Asia and Oceania region in
        2012, identifying trends for devices, networks, applications and industry insights
       Operators will look to new mobile broadband business models to maintain profitable
        growth.
       Provision of converged services will become more important as consumers access
        services on any device platform and network.
What will the telecommunications industry in Southeast Asia and Oceania be like in 2012?

Ericsson shares its insights on the top telecommunications trends for the market. “Drawing on our
regional network experience, global research, internal analysis and external references, we have
identified ten key trends for 2012 with regard to devices, networks, applications and industry trends,”
Arun Bansal, region head for Ericsson in Southeast Asia and Oceania, reveals.

From among these ten trends, Ericsson identifies a necessary shift in business models for mobile
broadband, the growth in cloud-based offerings, and increasing collaboration between operators and
over the top (OTT) players as the top three areas to watch.

“Considering the challenges many operators face where data traffic outpaces revenue growth,
Ericsson sees that mobile broadband operators will need to adopt different business models to drive
revenue growth as markets mature and the level of differentiation between competitors narrows,”
Bansal explains.

“The coming 12 months will see mobile broadband operators borrowing from innovative business
models already applied to financial services and airline industries, involving loyalty, user preferences
and service customisation, as well as defining offerings tailored to the needs of enterprise and SMEs.”

At the same time, operators are dealing with strong growth in smart devices, placing massive
demands on networks. “Those operators that have modernized their networks to 3G/HSPA and LTE,
will benefit with more cost-effective data delivery and the ability to better meet customer performance
expectations,” Bansal says.

As improved broadband capacity helps to overcome network bottlenecks, Ericsson also foresees that
cloud-based offerings from telecom operators and ICT providers will continue to grow. Operators can
leverage their network based advantages and strengths in managed services to differentiate their
cloud-based service offerings, as well as provide collaboration opportunities with other industries.

Bansal says that “we see great opportunities for telecoms operators to commercialise those cloud
applications and open up opportunities in traditional markets such as outsourced billing for over-the-
top players, or as a vehicle to enter emerging segments like cloud-based M2M platforms to support
various industries.”
                                                                                      PRESS RELEASE
                                                                                           15 December 2011




“Looking past 2012, as services continue to move into the cloud, it will be increasingly important for
operators to offer secure, reliable access while maintaining service continuity, irrespective of fixed or
mobile access.”

Also in the area of applications, 2012 will see LTE operators offer smartphones offering VoLTE,
heralding an era of high-quality mobile VoIP. Calls can be moved with ease from PC to mobile to
fixed phone.

Looking at Mobile Money and payments, Ericsson sees partnerships with telecom operators as key to
success of near field communications (NFC) based mobile money applications. In addition to network
advantages, operators possess efficient handset distribution channels, billing trust and customer
relationships, secure user profiles and location information which can all be used to increase the
security of electronic transactions.

In other industry sectors, the rise of LTE as the 4G standard will increase its attractiveness as a
legitimate alternative to proprietary communications technologies and solutions for industries such as
utilities and public safety. Ericsson predicts that utilities such as gas and water will follow the early lead
of electricity distributors in some markets, by harnessing LTE for their wireless communications needs,
by collaborating with mobile operators, and in some cases investing in their own infrastructure.

Ericsson also shares that the consumer and broader electronics sector, driven by economy of scale
efficiency gains, will increasingly embed mobile broadband in consumer and M2M devices, leading to
exponential growth in the embedded mobile broadband ecosystem – across 3G and 4G networks.
Embedded mobile broadband will not be limited to LTE only; in fact many machine-to-machine (M2M)
applications today still run on GSM or EDGE, with higher-data demanding applications leveraging
WCDMA and HSPA. Operators then need to look at multi-device subscription models, and explore
opportunities to work closely with other industries that will be keen to leverage mobile broadband in
their business operations.

The 2102 predictions cover a wide range of predictions that provide some insights into business
growth and new business opportunities across the telecommunications and other industry sectors.

Ericsson is pleased to add these insights to those produced by others in the sector to contribute to
discussions about ICT trends and benefits for business and the broader community.


2012 PREDICTIONS:

    1. Operators will need to adopt new mobile broadband business models to drive
       profitable growth. Traditional business models based on price, speed and volumes are
       becoming less effective. The telecom industry will look to replicate commercial models
       successfully deployed by other industries, such as financial services and airlines.

    2. Operators will increase cloud service offerings. Operators can leverage their network-
       based advantages and strengths in managed services to differentiate their cloud based
       service offerings. Three major roles for telecom operators are to: manage the cloud
       connectivity, deliver cloud-based capabilities and, importantly, leverage network assets to
       enhance cloud offerings. Major telecom operators in Singapore have already launched cloud
       services and we expect most operators to embrace cloud in their strategies in 2012.

    3. Collaboration likely to occur in converged services – The battle for delivery of content
       on any screen, between operators and over-the-top (OTT) services providers will continue,
       but there will be greater collaboration in order to leverage network capabilities to optimize the
                                                                                 PRESS RELEASE
                                                                                      15 December 2011



         viewing experience and integrate a broader range of network services enablers to enhance
         the customer experience. On-demand and over-the-top TV solutions continue to grow in
         importance for media owners and broadcasters as consumer viewing habits change, creating
         desire for watching TV anywhere, at any time, on any device.

   3. Embedded Mobile Broadband Growth. Driven by increasing business integration of ICT to
      deliver efficiency and productivity, key growth areas for embedded mobile broadband in 2012
      will be notebook computers, cameras, e-book readers, fixed wireless terminals, mobile health
      devices as well as smart meter applications.

   4. Explosive Growth in Tablets and Smartphones. Worldwide tablet momentum will show no
      sign of abating in 2012, with the number of tablet subscriptions expected to grow 10 times in
      the next five years. It is well known that Singapore has one of the highest take-up of smart
      devices – and this growth in tablets and smart phones will put pressure on networks to provide
      high performance to meet device capabilities.

   6.     LTE goes mainstream. Operators will continue to deploy LTE both to enable differentiated
         service levels to consumers and as a cost effective means of handling data growth. The
         growing LTE device ecosystem will support take-up and makes this a hot area to watch.

   7.     Growth in the adoption of HetNets. 2012 will see growth in the popularity of Heterogeneous
         networks - coordinated cells of varying capacities and sizes - to alleviate base station mobile
         traffic congestion and to enhance network coverage and improve performance.

   8.     Mobile voice will be available over LTE – LTE operators will offer smartphones supporting
         Voice Over LTE (VoLTE). VoLTE will provide high-quality IP voice services, enabling true
         fixed-mobile convergence for the first time. Calls can be moved with ease between platforms –
         from PC to mobile or fixed phone.

   9.    Operators play a key role in the success of mobile money -. Near field communications is
         expected to come of age across Singapore, with telecom operators, handset manufacturers
         and operating system vendors, banks and credit card companies as well as payment platform
         providers contesting for market share. We see this being applied across retail and point-of-
         sale terminals and taxis for example, that will be able to accept contactless payment from NFC
         enabled phones.

   10.     Other utilities will follow the early lead of the electricity sector in other markets and
         look at harnessing LTE for their wireless connectivity needs. The pre-eminence of 3GPP
         standards for HSPA+ and now LTE networks has made these wireless standards dominant in
         the global market, guaranteeing that they represent the lowest cost and future choice not only
         for mobile network operators but also other industries.


FOR FURTHER INFORMATION, PLEASE CONTACT:
Dao Mai Lan, Head of Communications
Ericsson Vietnam Company Limited
+84 904 10 4488
lan.dao@ericsson.com
                                                                                PRESS RELEASE
                                                                                     15 December 2011



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 180 countries, more than
90,000 employees generated revenue of SEK 203.3 billion (USD 28.2 billion) in 2010. Founded in
1876 with the headquarters in Stockholm, Sweden, Ericsson is listed on NASDAQ OMX, Stockholm
and NASDAQ New York.

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