Ericsson has got ready for the 3G era and will not scale back investment in China due to the global financial crisis. Instead it is likely to bet more in this fast growing economy in the coming years, according to vice president of Ericsson China. 
Johan Bergendah, chief executive officer of Ericsson, says that so far the impact posed by the financial turmoil on the telecom industry is still unpredictable. But one thing is for sure: everybody is shifting their focus from the West to Asia Pacific, especially toward China and India.

In the face of the faltering demands overseas and the slowing export, the Chinese government is hoping to spur domestic consumption with a series of big economic stimulus plans. And investment in telecom fixed assets is expected to hit new highs, which will give sales of telecom carriers a big lift. Each year, Ericsson spends about USD 1 billion in research facilities in China.

Now Ericsson is working together with China Unicom, the second largest mobile telecom carrier in China, on construction of WCDMA trail network in the city of Wuxi, Jiangsu province, according to a high executive from Ericsson China.

At the moment, the two parties are putting the priority on technical tests and optimization of network functions. In the meanwhile, the working group founded jointly by the two partners is working out network designs for over 200 Chinese cities.

Thus far, China Unicom is building up WCDMA trial networks in seven major cities around the country, including Shanghai, Shenzhen, Foshan, Liuzhou, Zhengzhou, Baoding, and Wuxi. Each city is designed to have some 100 WCDMA base stations.

Ericsson joins hands with the Chinese partner with a goal of gaining more orders on WCDMA equipment from China Unicom than it gets from its GSM networks.

By making cooperation of Chinese telecom equipment maker ZTE, Ericsson will be buffered against the global recession next year by expansion of wireless networks in China.

China, the world's fastest-growing market for wireless phones, will probably start 3G services next year, driving investment in networks from companies including ZTE.

Ericsson, the world's biggest maker of mobile-phone networks, may increase 2009 profit 19% to USD 2 billion.

China Mobile, an Ericsson customer and the world's biggest mobile telecom carrier in terms of users, will continue to increase network spending in rural areas. Investment in villages may drive a 31% gain in China Mobile's capital expenditure to USD 20 billion this year.

Source: dycj.ynet.com