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4-Traders Homepage  >  Equities  >  NASDAQ OMX STOCKHOLM  >  Telefonaktiebolaget LM Ericsson    ERIC B   SE0000108656

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Ericsson : heterogeneous network advantages confirmed in live networks

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02/23/2013 | 06:04pm CET
  • Comprehensive tests in live networks prove benefits of Ericsson's solution for building high-performance heterogeneous networks

  • Superior mobile broadband experience relies on improving and densifying the macro layer, then strategically adding coordinated small cells based on 3GPP access technologies and Wi-Fi

  • Measurements confirm a 100 percent capacity gain and significantly lower connection drop-rate when using coordinated small cells compared to an uncoordinated approach

Ericsson's (NASDAQ: ERIC) has provided comprehensive testing of heterogeneous networks solutions in live networks for operators around the globe. Advantages of Ericsson's approach for expanding mobile broadband coverage and capacity have been quantified and proven to address demands in the most challenging situations, while providing users and operators a seamless and effortless experience. In city centers, transport hubs and business parks, these network solutions will provide subscribers with a truly mobile lifestyle.

Ericsson's solution for building high-performance heterogeneous networks is based on three pillars: improve performance of existing macro base station sites, densify the existing network by adding macro sites at strategic locations, and add small cells based on HSPA, LTE, and Wi-Fi technologies.

Results of Ericsson's heterogeneous network testing have shown the following benefits, among others:

Capacity gain, lower TCO - The highest capacity and best user experience in a heterogeneous network are achieved by fully coordinating macro cells, small cells, and access technologies. Confirmed by recent measurements in live networks, a capacity gain of 100 percent or more is obtained by reusing the scarce macro frequency spectrum in the small cells - a significant improvement in comparison with uncoordinated solutions that require separate frequency spectrum. This reduces the number of small cells needed in the network, resulting in lower total cost of ownership.

·Higher data rates - Coordinated small cells further ensure a superior and seamless user experience throughout the network as spectrum can be reused in all cells. Peak data rate is available in all cells, and the uplink data rate experienced under challenging load and radio conditions can be increased up to 10 times.

·Lower drop-rate - Another important advantage is that seamless handovers, such as Soft Handover in HSPA, can be used instead of inter-frequency handovers that cause more connection drops and interruptions. Tests using separate frequency carriers for small cells resulted in a four-time increase in connection drop rate, even after extensive optimization.

Thomas Noren, Vice President and Head of Product Area Radio, Ericsson, says: "Operators with dense urban environments need to offer a superior consumer experience, even under heavy traffic. Ericsson has developed a complete heterogeneous network solution based on coordination between all cells and access technologies, including 3GPP technologies and Wi-Fi. It is very rewarding to see the potential of our high-capacity heterogeneous network confirmed in live networks."

Ericsson will showcase its complete set of solutions for heterogeneous networks in Hall 2 at Mobile World Congress 2013 in Barcelona.

During 2013, Ericsson further strengthens its offering for heterogeneous networks, including new base stations, radio access network features, flexible backhaul, and Operation & Maintenance support for a plethora of use cases.

NOTES TO EDITORS

During Mobile World Congress 2013 in Barcelona, Ericsson showcases its combined technology and services leadership for the Information and Communications Technology industry. Our solutions deliver superior network performance in the field, enable complete customer experience management, simplify and automate operations workflows thereby leading to operational excellence. We show how the Networked Society comes to life - what it will mean for the industry and how it will enable our customers to capture growth opportunities.

Download high-resolution photos and broadcast-quality video at www.ericsson.com/press

Ericsson is the world's leading provider of communications technology and services. We are enabling the Networked Society with efficient real-time solutions that allow us all to study, work and live our lives more freely, in sustainable societies around the world.

Our offering comprises services, software and infrastructure within Information and Communications Technology for telecom operators and other industries.Today more than 40 percent of the world's mobile traffic goes through Ericsson networks and we support customers' networks servicing more than 2.5 billion subscribers.

We operate in 180 countries and employ more than 100,000 people.Founded in 1876, Ericsson is headquartered in Stockholm, Sweden. In 2011 the company's net sales were SEK 226.9 billion (USD 35.0 billion). Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ, New York stock exchanges.

FOR FURTHER INFORMATION, PLEASE CONTACT

Ericsson Corporate Communications
Phone: +46 10 719 69 92
E-mail: media.relations@ericsson.com

Ericsson Investor Relations
Phone: +46 10719 00 00
E-mail: investor.relations@ericsson.com

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Financials ( SEK)
Sales 2016 217 870 M
EBIT 2016 12 018 M
Net income 2016 5 995 M
Finance 2016 2 976 M
Yield 2016 5,48%
P/E ratio 2016 26,85
P/E ratio 2017 21,50
EV / Sales 2016 0,72x
EV / Sales 2017 0,74x
Capitalization 158 863 M
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Mean consensus HOLD
Number of Analysts 28
Average target price 49,5  SEK
Spread / Average Target 3,8%
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Jan Magnus Frykhammar President & Chief Executive Officer
Leif Valdemar Johansson Chairman
Carl Mellander Chief Financial Officer
Ulf Ewaldsson Senior VP, Chief Strategy & Technology Officer
Jan Ulf Sigvar J. Johansson Independent Director
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