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This is the year of TD-LTE - Ericsson CFO

Ericsson on Wednesday said the momentum behind TD-LTE will pick up further pace in 2011, with key markets expected to begin selecting equipment vendors for full-scale network rollouts later this year.

The Swedish kit maker was chosen earlier in April to participate in China Mobile's TD-LTE trial, and Ericsson's chief financial officer Jan Frykhammar is upbeat about the company's chances of participating in a broader network deployment.

"We're working hard in the trials, and hopefully later this year we will be selected as a vendor," he told Total Telecom.

He said he does not expect commercial services to be launched this year, but insisted that "there are some big important economies going in for TD-LTE."

Indeed, China and India are currently leading the way and what's more, according to Frykhammar, big markets further afield could follow suit, provided operators have the necessary spectrum available to them.

"This is the year of TD-LTE," he declared.

Meanwhile the overall growth of the LTE market also brings with it intensifying competition, as kit makers vie with one another for lucrative network contracts. Ericsson seems to have felt the impact – the company managed to grow its share of the 3G equipment market in 2010, but its share of the LTE market remained flat at just over 50%.

However, Frykhammar insisted that not surrendering any market share during a time of rising competition highlights Ericsson's success in this area.

"Maintaining 50% market share is actually quite good," he said.

Frykhammar's comments were made after Ericsson earlier on Wednesday reported an impressive set of first-quarter results.

The company's net profit surged 220% on-year to $670.35 million, from $209.32 million. Revenue grew 17% to $8.70 billion from $7.41 billion in Q1 2010, driven by ongoing demand for mobile broadband.

Frykhammar said he expects the momentum behind mobile broadband data traffic to continue throughout 2011, and reiterated Ericsson's long-term ambition to grow its business between 4% and 10% per year.

However, the company warned during its results announcement that the earthquake which struck Japan in March could affect the delivery of certain products, and estimated that it will likely experience component supply issues until the third quarter.

Meanwhile Ericsson's dispute with Chinese rival ZTE also rumbles on. The two companies filed lawsuits against one another earlier in April over alleged patent infringement.

Frykhammar was unable to provide an update on the proceedings, but insisted the action was necessary.

"We have been negotiating a licence agreement with ZTE for many years, but now it has become necessary for us to take this action," he said.

"We would like this resolved as soon as possible," he added.

Источник: Total Telecom

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