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Two goals of Ericsson in China market: increase the share of LTE and promote operator transformation

Updated:2014/9/26 09:48

Although the commercialization of LTE has just started in China, but the large scale network and user base make China LTE market a tasty target for various telecommunication equipment vendors. However, as a near 100-year old enterprise in  telecom equipment market, Ericsson didn’t obtained an ideal share in TD-LTE bidding in China market, but whether this will affect Ericsson’s confidence and investment in China LTE market?

In this regard, Chang Gang, the CMO of Ericsson in China, made it clear in an interview with C114, "the previous results will never affect Ericsson’s confidence and investment in China market, especially the LTE market. Ericsson will always stick to the LTE market in China, and also we hope we can improve our share in the LTE market based on these two years."

"Ericsson has two main goals in China Market in this year: one is to enhance telecommunication operators’ confidence in Ericsson by the excellent performance of our products in the commercial LTE network, and actively expand our market status and share in LTE development in China; at the same time, we will support the operation transformation of telecom operators by our rich experiences in operation support fields, and successfully practice the operation of value."

Opportunities in domestic market are still great

How big is China LTE market? The "mobile market report" newly released by Ericsson shows, China will become the world's largest LTE market in 2019, the sustained and rapid deployment of LTE network in China will make subscribers of this technology exceed 700 million by the end of 2019. This means that, China will account for more than 25% of the global LTE subscribers, making one of four LTE subscribers are Chinese.

In order to seize the initiative in the 4G era, deployment of mass LTE base stations becomes the key strategy for operators in the 4G era. Therefore, the three major operators will deploy LTE base stations in a large scale, only China Mobile alone plans to build more than 500,000 TD-LTE base stations by the end of 2014.

But after two rounds of China Mobile TD-LTE tender,shares of foreign equipment vendors gradually decline. For equipment vendors after the two rounds of centralized purchasing of China Mobile TD-LTE, the shares of equipment vendors in China Mobile 4G markets will also be set. Chang Gang said frankly, "there are many factors in competition in China market, different vendors are faced with different pressure, the share of Ericsson is not big in China LTE market, therefore we feel heavy pressure in this situation."

However, although the largest LTE projects in China, the first and second round of tender in China Mobile TD-LTE, have come to an end, there is still a long way to go in the future. "By the end of this year, China Mobile will complete deployment of 500,000 TD-LTE base stations, and expansion of more base stations may be needed in the future. In addition, FDD LTE licenses in China haven’t been officially issued yet, the large-scale construction and extension of China Unicom and China Telecom LTE network have not been officially launched, which are great opportunities for Ericsson in China LTE market." Chang Gang said.

 Source:c114
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