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Ericsson CEO bullish on the future, predicts 3G will kick-start wireless telco sector

The telecommunications landscape may be littered with layoff notices, but that hasn't stopped the president and CEO...

November 5, 2002  

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The telecommunications landscape may be littered with layoff notices, but that hasn’t stopped the president and CEO of wireless giant LM Ericsson from making a bullish prediction about this sector’s future.

During a keynote speech today at the sparsely attended Expo Comm Canada conference in Toronto, Kurt Hellstrom predicted the introduction of mobile services based on third-generation (3G) wideband code-division multiple access (WCDMA) networks will kick-start the industry.

"In spite of the current state of the industry, we should not jump to conclusion," he said. "This is a growth industry and the growth will come back. Communication is a basic human need and we have only seen the beginning of what lies ahead."

The telco industry, he said, is moving to a phase where through 3G, voice, data and images will be able to be sent across wireless networks.

"With 3G we are cutting the wires to broadband, but the wires will still grow in importance," said Hellstrom. "This may sound like a contradiction, but it is actually quite logical. Basically, users want their information wherever they are. At home or in the office, they want a fast connection on their PC, the TV sets or other devices. On the move they want the same information on their mobile phone."

Because of that, the network architecture will change, evolving from a vertically integrated single service to being open and horizontally layered, he said.

In order for 3G network-based services to become pervasive, they must developed locally and adapted to specific markets, said Hellstrom.

He predicted that by the end of 2007, the number of mobile phone subscriptions worldwide will total 1.8 billion.

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