"Our three competitive advantages are still there: Ericsson's technical leadership, service leadership and global scale." Ericsson CEO Wei Hansi described Ericsson's market position in the fierce market competition.
At MWC 2014, Ericsson has launched new products in various fields such as network services and technical support. Many executives led by Wei Hansi also explained the growth path of 2014 to the Chinese media.
"Our strategy is to continue to lead the direction of operators. We have proposed the concept of network society. The future networking capability and mobility are still the key," said Yang Xikai, president of Ericsson Northeast Asia.
Summary 2013: Transformation
In the past year, Ericsson's sales have increased by 5%, revenues reached 227.4 billion Swedish kronor, and cash flow of 17.4 billion Swedish kronor.
Wei Hansi believes that one of the biggest keywords is transformation. “The number one market in the mobile network infrastructure, TV media delivery, OSS/BSS, telecommunications services and many other technical fields is ranked first in the market, thanks to the results of our transformation.â€
From last year's sales revenue, 43% came from services and 24% came from software. Wei Hansi believes that compared with any software company in the world, Ericsson ranks among the best in software sales, and the transformation is very important to the company.
Ericsson CTO Aihuaxin believes that not only the telecommunications industry and the IT industry are transforming, but other industries such as television, film and music industries have already realized new technologies to promote the transformation and upgrading of services and products, and to make value chains through new technologies. And distribution channels have changed. “Whether it’s for an Internet company like Facebook or an operator, users pay only for services and links.â€
In terms of investment in new technologies, Wei Hansi revealed that last year, Ericsson invested $5 billion in research and development to maintain technical leadership.
The solution at this year's MWC show can be seen in the leadership of this technology: on the network side, there is a “point system†that complements indoor coverage, a “cellular as a service†solution; in OSS/BSS, Ericsson has launched agile Services, and signed OSS interoperability agreements with Huawei and Nokia; in cloud services, Ericsson introduced software-defined networking (SDN) and network function virtualization (NFV) services.
In cross-border cooperation, Ericsson and Philips also launched the "Intelligent Street Light" project to hide the base station on the street light pole, which not only solves the problem of difficult base station construction, but also promotes energy control through mobile broadband.
Software hardware walking on two legs
At the press conference, Ericsson released the new software product network software 14B (Network Software 14B), which is Ericsson's first separate release of software products in the history of MWC.
Thomas Noren, vice president and head of wireless products at Ericsson's network business unit, explained that Ericsson was hardware-led in the past, and now Ericsson has to learn to walk on two legs. Software continues to appear new features, can be upgraded, but the hardware can not be neglected, hardware is the basis of software success.
Network software 14B is the industry's first software to coordinate the entire network, and is committed to improving network performance and supporting operators' business growth. The product can increase the speed by 50% in the same hardware configuration network environment.
When it comes to future software development, Ericsson is owning “organic growth†or relying on mergers and acquisitions. Thomas believes that many of the features of professional software companies are not available to Ericsson. When there are suitable objects and opportunities, Ericsson will choose M&A.
Looking forward to the Chinese market of LTE
In 2013, regardless of the specific business product form, Huawei's overall revenue (about $39.3 billion) exceeded Ericsson ($35.3 billion). Yang Xikai believes that if you look at the share of LTE, Ericsson is more than twice as much as the second.
Wei Hansi said that up to now, half of the world's LTE traffic comes from Ericsson's network, Ericsson is still the first in the LTE contract.
However, specific to the performance of the Chinese market, Yang Xikai's answer is very cautious.
In the past several bids for LTE operators, several Ericsson executives have expressed dissatisfaction with the share of the Chinese market.
As for the future market performance, Yang Xikai stressed that Ericsson has about 50% of the global LTE market share, and its outstanding performance in the world is attributed to the superior performance of Ericsson's network. “We hope that over time, we will also be able to see a share in the Chinese market that is corresponding to the global market due to the superior performance of our network.â€
In the process, he believes that the industry is facing new changes, and the divisions and boundaries between enterprises will gradually become blurred.
“There will be many different areas of aggregation or integration and integration. There will be companies that provide specialized services for a certain field, and some provide a wide range of services, but mobile services are the most important.â€
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