Ericsson aims to serve local 3G operators

       Ericsson is building its local professional services to grab emerging opportunities from the development of a local 3G mobile phone service.
       The Swedish telecom equipment manufacturer expects to see substantial growth in its local professional services next year. It hopes the new service will create a long-term revenue stream for the company over the next few years.
       The value of the professional services market exceeds the amount that needs to be invested over the next few years to develop a 3G network, said Peter Borjesson, vice-president of the network services division at Ericsson Thailand.
       The three major mobile-phone service providers - AIS, DTAC and True Move - plan to invest a combined 100 billion baht to set up local 3G networks.
       After establishing a strong footprint in the US and Europe, Ericsson is stepping up efforts in Thailand to bundle its professional services with sales of its 3G network equipment to position itself as a end-to-end 3G service supplier.
       The professional services unit covers management services, network deployment, systems integration and consulting.The company commands slightly more than 10% of the global professional services market. The professional services unit contributed 38% of total sales revenue last year. "The total number of subscribers in our managed operations is now 350 million, representing about 25% of total mobile phone users globally," said Mr Borjesson.
       "Given our competitive scale and skills, plus the local business presence, we are now ready to promote our services by working in partnership with network operators."
       More complex network architecture and the increasing trend for operators to outsource IT services, Mr Borjesson said the company would focus on its core businesses and trying to reduce costs for clients.
       Chinese firms are aggressively promoting their 3G network technology but this does not mean the business opportunity has closed for Ericsson, he said.
       Ericsson can draw strength from its global brand presence while smaller operators have yet to establish themselves. Ericsson won the first-ever agreement for a commercial end-to-end 3G system from Thai Mobile for a nationwide mobile network integrating GSM and 3G.