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.