FINAL REVISION

FINAL REVISION

Ericsson Indonesia retains its strong position in telecom market

Sweden-based Ericsson has maintained a presence in Indonesia
since 1907. Ericsson has not only been involved in the
development of the country's telecommunications infrastructure,
but equally important has supplied equipment, systems, solutions
and services to its customers in Indonesia.

Below is an excerpt of an interview with PT Ericsson Indonesia
president director Mitch Lewis.

Could you explain what Ericsson Indonesia can provide to its
customers?

We cover total solution for telecommunications: Mobile
systems. We are the only supplier to offer the two main 3G paths:
GSM/GPRS/EDGE/WCDMA and CDMA2000. Multiservice networks:
solutions that help operators transform existing networks or
build new multiservice networks for voice, Internet and
multimedia. Transport network: offers complete transmission and
transport solutions for mobile, fixed and dedicated networks.
Services: design, build, manage and optimize operators' networks.
Service layer: offering combined products, services and
partnerships to create solutions and evolutions toward 3G. Mobile
enterprise solutions: deliver secure convenient access to
corporate voice and data applications through PT Suria Solusi
Indonesia. Finally, with the support of Sony Ericsson, we are
providing cutting-edge mobile phones and multimedia
communications products.

With such a long presence in Indonesia, what are some of the
company's milestones?

Our earliest milestones include the introduction of Ericsson
products in Indonesia in 1907 and the utilization of the first
Ericsson Automatic Central Telephone by government offices in
1953. In 1994, Ericsson supplied infrastructure for the first
digital GSM 900 network for Telkomsel in Batam. In 1996, Ericsson
supplied infrastructure for the GSM 900 network to Excelcomindo.
In 2000, Ericsson supplied all infrastructure for the first
national GSM 1800 network and GPRS to Indosat Multi Media Mobile
(IM3). In 2001, Ericsson supplied the expansion of the Telkomsel
network (GSM 900/1800) in Sumatra. In 2003, Ericsson was awarded
a CDMA2000 contract from PT Telkom and today Ericsson continues
to assist customers in meeting their needs for network expansion.
In addition, with the new 3G licenses granted by the government,
we are actively participating in offering our solutions and soon
will introduce the first WCDMA call demo in Indonesia.

How can Ericsson maintain its leadership in the infrastructure
market in Indonesia? What strategy does Ericsson Indonesia have
for retaining its strong position?

First, we always try to deliver on our commitments and promises
to our customers. Second, we continuously try to invent leading-
edge technology in telecommunications. Last, but not least, we
also try to meet customers' needs; such as helping them develop
new types of services by understanding their customers'
(consumers) behaviors. Quite frequently, we help them to develop
new ways of earning more revenue.

What actually are the competitive advantages that Ericsson offers
to customers?

Ericsson helps to shape the future of telecommunications by
collaborating with customers and sharing its global experience
and best practices; new mobile services, enabled by our
technologies and based on our understanding of consumer needs,
are being taking up in many parts of the world. We are the
world's largest telecom services company; we have a complete
services portfolio and are growing our business in the areas of
consulting, systems integration and managed services. Ericsson
also holds a unique position in the service layer, which is
becoming more and more important as we move toward 3G and new
mobile services.

And that has made Ericsson Indonesia a preferred business
partner?

Yes, but we are also a preferred business partner because we
provide high quality products and services at the best possible
cost of investment. Therefore, we also maintain a good
relationship with our customers.

Mobile phone technology has experienced a considerable
evolution. What is Ericsson's role in this technology shift?

We have the edge in the technology shift from analog to digital
mobile telephony. Today, we are leading the way to third-
generation mobile communications. Our role is to help customers
maximize and migrate their networks seamlessly through different
phases of the technology shift, and, through R&D, to continue to
shape the future of telecommunications.

What advantages can customers gain from adopting 3G standard?

The 3G standard will enable customers to offer more multimedia
services, including video-to-video calling, high-speed Internet
access, entertainment, gaming and other services. The technology
will also provide operators with a lot more network capacity.

When will Indonesia be ready for 3G, do you think?

The readiness of any technology requires a process along the way,
as well as investments in technology, products, solutions and,
equally important, education of the market. After seeing the
rapid development of mobile communications over the past two
years, the collaborations between operators, vendors, government
and industry can stimulate the market to get ready for the 3G-
era. I believe it will start sometime next year, but we will make
the front WCDMA first call demo sometime this year.

What are the prospects for 3G?

They are promising. Today, Ericsson has commercial agreements
with 46 of the 91 operators of WCDMA networks around the world,
is the supplier for 11 of the 15 operators who have launched
EDGE, and 18 CDMA2000 customers. In Southeast Asia, 3G standard
has been deployed in Malaysia and Singapore. In Indonesia, the
deployment of 3G will depend on the licenses granted by the
government. Indonesia is expected to have the third largest
number of call users taking advantage of 3G networks after
Australia and New Zealand.

And to make it clear, what do you mean by offering total
solution?

We are not only supplying products to our partners, but also
offering services including telecom system management and
consultation services. Essentially, we work closely with our
customers in providing all the elements needed to bring to life
mobile communications and Broadband Internet for our customers'
customers. At the same time, working together with Sony Ericsson,
we are providing innovative multimedia products to the market.