Ericsson Goes in with Zain for Broadband Services in Developing Countries

| Feb 17, 2009 | Consumer Broadband Services - Europe | Show Update

| Analyst: Bernt Ostergaard

Current Perspective: Positive/Neutral Vendor Importance: High Market Impact: Moderate

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Event Summary

February 16, 2009 - Ericsson announced a wide variety of services and products at the Mobile World Congress, but spent a large part of its press conference discussing the importance of global telecoms development and the role of developing economies in pulling us all out of the global recession. This has led Ericsson to a partnership with Zain, recognising that the mobile industry is now on the verge of another significant wave of investment, which will bring affordable mobile broadband services to all.

Analytical Summary

• Current Perspective: Slightly positive on Ericsson’s focus on bringing affordable mobile broadband to emerging markets in developing countries as they will be the regions where the next billion mobile subscribers are to be found.

• Vendor Importance: Moderate to Ericsson in that it is still focused on its high-end HSPA and LTE initiatives, but also needs to have a compelling broadband message to emerging markets. Working with a multi-country, but still ‘local’ operator such as Zain gives Ericsson the opportunity to replicate solutions across many emerging markets.

• Market Impact: High on communications providers in emerging markets, because it demonstrates the business value for European vendors and operators of investing in infrastructure and enhanced broadband communications in developing regions. Once profitability is demonstrated, private investors can move a lot faster than traditional development aid projects – with a much greater impact.

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Current Perspective

Competitive Positives and Concerns

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