At the 2018 World Mobile Congress, where the 5G gunpowder flavor was strong, Ericsson CEO Bao Yikang expressed his views on topics such as 5G. Let's take a look at the related content with Xiaobian.
Although 5G is the hottest topic of this year's show, operators are generally faced with the challenge of how to invest 5G efficiently. Bao Yikang said that the telecom industry is currently facing the problem of stagnant revenue and a surge in traffic. Operators need to strive to control costs while ensuring user experience, and cannot afford to skyrocket. "Under this premise, we believe that the earliest 5G use case will be enhanced mobile broadband, which operators can use to cope with traffic growth without reducing the user experience."
For example, Bao Yikang said that a site compatible with 4G and 5G networks is equivalent to one-tenth of the cost of transmitting basic data in gigabytes. It is precisely because 5G has a prominent cost advantage that global operators will show more and more interest in it. "Ericsson has already begun to receive orders for 5G commercial use." Bao Yikang said, "Operators' interest in 5G is not currently coming from a specific commercial use case, and more is the need for operators to cope with the cost control of traffic surge."
At the Pakistan exhibition, Ericsson issued an initiative of “5G sits on the ground and does not work as wellâ€, suggesting that operators are now ready for the network to evolve from 4G to 5G, including network virtualization, new core network, new The billing system, etc., only in this way can have the opportunity to grasp the benefits brought by 5G.
Bao Yikang said that Ericsson wireless systems can now provide 5G-ready hardware devices, and operators can upgrade their 4G networks to 5G through software upgrades. This is a very efficient and forward-looking investment for operators, and it is also a matter that operators should focus on now.
Although operators in various countries are now moving very much on 5G, the investment can be compatible with 5G network hardware, virtualized core network, etc., but Bao Yikang believes that scale deployment will not happen until 2020. “Europe has too many uncertainties from regulation, and it is difficult for operators to determine their investment intentions. Northeast Asia and North America are leading the 5G deployment, which is very clear.†Bao Yikang said.
According to Ericsson's observations and research, European operators have not yet obtained spectrum, and the cost of spectrum and the time limit for possessing spectrum are not clear, so the willingness to invest in Europe is indeed very unclear. In other parts of the world, such as Africa and Latin America, and other parts of Asia outside Northeast Asia, because data traffic is not growing as fast, operators have no urgent 5G investment demand. Only in Northeast Asia and North America, policy and market demand are relatively clear, and operators' willingness to invest in 5G is also very strong.
There is no doubt that the development of 5G will be full of competition, but Ericsson is determined to become the leader of this market.
Bao Yikang said that Ericsson has increased its development in China since last year and successfully increased Ericsson's market share in China. Although China's 4G market has already passed the peak of investment, Ericsson has regained some market share through leading technology solutions. “This is what I think is the most important winning factor – continuous innovation, providing our customers with the lowest total cost of ownership (TCO),†says Bao Yikang.
Next, Ericsson will continue to increase its investment in 5G. To date, Ericsson has signed a cooperation memorandum of understanding on 38 network tests with operators. More importantly, Ericsson has also signed several commercial contracts and will deliver products to customers by the end of the year. “We will also increase our efforts in the Chinese market to ensure that we can provide the most competitive technologies and products for the Chinese market. This is evident from our continued investment in research and development in China. Ericsson’s R&D center in China is Sweden. The biggest research and development force outside," said Bao Yikang.
Regarding Ericsson's poor financial performance in 2017, Bao Yikang said that Ericsson carried out a series of strategic restructuring within the company last year to reduce business risks, including giving up some areas with poor earnings. At the same time, Ericsson's cash flow performance is gradually improving. “The financial situation of Ericsson at the end of 2017 is much stronger than that at the beginning of the year, so we not only have to see the figures in the annual financial report, but also to see the performance in the real world.†Bao Yikang said, “The reality is that we have regained the technical leadership. , expanding our market share, making our operations more efficient, and thus gaining a stronger financial position."
Speaking of his work in the past year, Bao Yikang said that in the past year, Ericsson has carried out a strategic restructuring, increased investment in research and development, and improved customer relationships. “Customer relationships will be an important criterion for measuring the effectiveness of these restructuring efforts.†Bao Yikang said, “Customers are always the most important, and financial performance is the natural result of whether we provide our customers with the best service.â€
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