May 08, 2009
Ericsson Leaders Explore Telecommunications' Future
By Susan J. Campbell, TMCnet Contributing Editor
Ericsson’s Capital Markets Day in Boston is proving to be a productive day. The company’s president and CEO, Carl-Henric Svanberg (News - Alert) spoke about Ericsson’s position, upcoming opportunities and about telecommunications going forward. Telecom is expected to play a role in transforming society until 2050. At the same time, broadband will be society’s new highways and telecom will contribute to sustainable society.
"Today broadband is at the turning point with infrastructure already widely available worldwide. However, we have not realized the full impact and potential that it will bring to society. Over the next 20 to 30 years, it will stimulate innovation across society and will lead to the deployment of completely new solutions," Svanberg said.
Svanberg highlighted how well the company is prepared for current market challenges and opportunities that focus on business growth. Ericsson (News - Alert) will also focus on advancing solutions in strategic market, such as the U.S., India, China and Japan.
The president was quick to remind all those present about Ericsson’s early introduction of cost-reduction programs in order to drive customer retention and safeguard its market positioning.
Sony Ericsson's President, Dick Komiyama (News - Alert), also contributed: "Despite the challenging economic environment, I am certain that Sony Ericsson will turn its business around and once again be an industry leader. In the past 12 months, we have taken many actions to streamline the organization and adapt to the new business reality. We are looking forward to exciting the market with new products and services in the months ahead."
Alain Dutheil, ST-Ericsson’s (News - Alert) CEO noted that the company has created a new and exciting industry leader in wireless platforms and semiconductors and was the first to consolidate in its industry in a challenging economic climate. The company has also put in place short-term plans to create a sustainable base for its operations and long-term success.
The management team present at Capital Markets Day emphasized network transformation to all-IP and the importance of Ericsson's presence in Silicon Valley, Ericsson's further strengthened position in services, and the growing multimedia business.
The anticipated growth in the telecommunications industry over the next 40 years is significant for not only Ericsson, but also other key players who are able to sustain profitability – or at least break even – during this economic downturn. It is those that anticipate and meet new challenges with innovative solutions that are likely to lead the market for the long term.
Susan J. Campbell is a contributing editor for TMCnet and has also written for eastbiz.com. To read more of Susan’s articles, please visit her columnist page.
Edited by Jessica Kostek