Ericsson CEO: Big data will be the driving force for future growth of telecom industry

In spite of the weakening global economic environment, which has made telecoms operators more cautious in their investments, as well as the rise in revenue growth for telecoms equipment manufacturers, Ericsson remains optimistic about the continued growth of the industry, the news of February 26.

Ericsson CEO and President Vestberg in the "2013 World Mobile Communications Conference" during an interview with NetEase technology, said that the telecommunications equipment market does not have the so-called ceiling, the rapid development of the network society and the resulting large data, large flow, will be the telecommunications equipment manufacturers in the future business development brings huge market opportunities.

Big Data brings big business opportunities

On a global scale, the weakening of economic growth is having a negative impact on the telecommunications industry as a whole. With the slow investment of telecom operators, the basic completion of 3G construction and the scale effect of 4G building, telecom equipment manufacturers inevitably encounter difficult times.

This negative impact is directly reflected in the financial performance of telecom equipment manufacturers. In addition to the NSN that have been able to make a profit from the effective implementation of the restructuring strategy and Huawei, which relies on more business to achieve profitable growth, the financial performance of other mainstream telecoms equipment manufacturers was not satisfactory in 2012, when ZTE suffered massive losses and rung failed to make a profit. Ericsson, the world's biggest telecoms equipment maker, has seen its net profit fall sharply year-on-year.

This situation has plunged the industry into a pessimistic mood. However, Ericsson, which has been underperforming, does not think the winter is up.

Vestberg in the interview that the high-speed development of the network society will bring great business opportunities for the future development of telecom equipment manufacturers. In 2013, more than 50% of the world's mobile phones will be smartphones, including smartphones, smart grids, smart cars, and more will connect to the Internet and be smarter, with 2 billion more mobile broadband subscribers, according to a group of data from Ericsson reports.

"There will be more rapid changes and perhaps more technological innovation," he said. "All of these developments point to the network society that Ericsson had predicted before – all the objects that could benefit from the connection would be connected, and the user and the industry would be affected," Vestberg said.

Ericsson predicts that in the five years to 2018, global Mobile users will have 6.3 billion growth to 9.3 billion at the end of last year, and mobile broadband users will rise from 1.5 billion to 5.5 billion at the end of last year, and smartphone users will grow from around 1 billion now to 3.3 billion, and data traffic will increase by 12 times times.

In other words, with the rapid development of the network society, the non-smartphone users will be a large-scale migration of smartphone users, resulting in the volume of traffic will be more rapid growth, and this change will bring new growth for the development of the telecommunications industry.

More crucially, based on the development of the network society, large data, large flow will gradually run through the various industries, the new business model will come into being, the entire telecommunications industry will benefit.

Business Transformation Drives growth

"The rapid development of the network society, will eventually bring the entire communications industry in the technology and business models and other aspects of the transformation." Vestberg said that Ericsson, in exchange with telecom operators in more than 180 countries around the world, has found that operators are also exploring "a path of success under mobile Internet development".

Vestberg believes that telecommunications operators should have the best network, provide the most outstanding services, and on this basis to develop new business models to ensure revenue growth. As a telecommunications equipment provider, Ericsson will always aim at the forefront of ICT development trends, and constantly increase the strength of research and development, with telecom operators to meet the challenges of new technologies, and to help telecom operators to achieve maximum market value.

At the same time, with a richer solution in the BSS field, Ericsson can assist telecom operators to meet the needs of the large data age network, and to help telecom operators achieve accurate and stable revenue sources in terms of pricing and charging systems.

According to the introduction, in the past two years, Ericsson acquired ConceptWave, Telcordia and other assets to enhance the strength of the BSS area, coupled with a relatively good pricing and billing system, Ericsson to assist operators to provide quality user experience has a certain degree of technical advantages.

"In addition to providing network construction and BSS support solutions, Ericsson also has a professional management service team of about 65000 people." Vestberg said that because Ericsson can provide high-quality telecommunications professional services, more and more telecom operators are willing to choose Ericsson to provide them with real-time professional services to ensure the smooth network and achieve the best user experience.

It is understood that the telecommunications equipment market in the long-term stability of Ericsson, has chosen to focus on the business from a single telecommunications equipment sales, to mobile broadband, professional management services, support solutions three business direction to extend to cope with the rapid growth of network society and the resulting industry changes.

The extension of the above three operations, as predicted by Ericsson, will drive the continued growth of Ericsson in the future. At present, the growth of strong management services and BSS support solutions two major business, Ericsson has become an important source of revenue growth. (Chen)