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Technology Stocks : Ericsson overlook? -- Ignore unavailable to you. Want to Upgrade?

To: P2V who wrote (2068)	10/5/1998 10:20:00 AM
From: Terry D	Read Replies (1) \| Respond to of 5390

China and CDMA We believe the recent misgivings from China's Minister, Wu Jichuan, jeopardize, at least for the near-term, opportunities to deploy a CDMA network that would have ultimately competed against China Telecom. At present, GSM comprises more than 95% of the Chinese wireless market, largely controlled by China Telecom. Speculation of pressures by China Telecom to slow down China Unicom's CDMA efforts have existed for some time prior to this now, more openly negative sentiment. A large issue spurring this sentiment appears to be the wide belief that 3G wideband CDMA (W-CDMA) solutions are near. We believe that Asian W-CDMA development efforts outside of China, including those of NTT DoCoMo (Japan) and SK Telecom (South Korea), confirm the propinquity of 3G network deployments. While measures-the ban of CCF-style financing-have been taken to reduce GSM deployment plans for China Unicom, subsequently limiting financing and equipment opportunities for some suppliers, we believe that the Chinese government is not likely to curb foreign involvement in the supply of GSM equipment to China Telecom. In other words, we believe that China has developed little GSM technical expertise, thereby reducing the risk that local Chinese manufacturers will be awarded infrastructure equipment order mandates. We estimate that Chinese network sophistication remotely competitive with Ericsson, Nokia, Lucent and Nortel network solutions will likely require two to three years. Meant not only to inject competition to China Telecom's near- monopoly position in the Chinese wireless market but ss an additional measure to prevent against capacity and coverage constraints, a delay or cancellation of either China Unicom/Great Wall's planned CDMA network deployment or China Unicom's GSM expansion would, in our opinion, place excessive burden on China Telecom. However, this pressure could create positive demand fundamentals stemming from China Telecom and other Chinese carriers such as MPT, of which Ericsson, Lucent, Motorola, Nokia and Nortel all supply in varying degrees. Since Ericsson and Nokia maintain dominant positions as suppliers to many of the tier-one providers, we believe they are most capable of withstanding-and even leveraging their extensive relationships with other operators-any temporary delays in GSM network deployments. Conclusion We believe that these circumstances will positively affect the more entrenched suppliers such as Ericsson and Nokia who have little exposure to China Unicom and strong relationships with tier-one carriers, who will most likely now be confronted with additional capacity constraints. We reiterate our bullish position on the wireless telecom equipment industry, with the belief that, the possibility of economic instability aside, wireless fundamentals, supported by vigorous subscriber growth and aggressive network expansion schedules, remain in place. Underpinning the positive growth dynamics in nearly every region are markets characterized by deregulation, privatization, and market liberalization that fostered an increasingly competitive telecom environment. We believe that these forces continue to drive wireless network proliferation in China, as well as set the landscape for a spate of infrastructure order announcements in Latin America, following the privatization of the Brazilian telecom company, Telebras.

To: P2V who wrote (2068)	10/5/1998 10:33:00 AM
From: P2V	Respond to of 5390

Ericsson and Rogers Cantel developing OSS solutions for D-AMPS IS-136 Ericsson and Rogers Cantel Inc., Canada's largest wireless network operator will collaborate in the development of Operations Support Systems (OSS) for wireless networks based on the D-AMPS IS-136 standard. The two companies have signed a cooperation agreement covering the collaboration, and will initially concentrate on new techniques for analyzing fault and performance data from D-AMPS networks. The term OSS denotes computer-based systems that support a network operator design, implement and optimize the operation of their networks. Typical OSS functions include network configuration, performance management, fault and security functions. Ericsson offers OSS solutions on an open platform, based on TMN (Telecom Management Network), an industry standard for OSS. This cooperation reflects the fast-changing nature of the wireless communications industry, and the need for suppliers and network operators to work even more closely together as competition for mobile services intensifies, and network and service requirements become more complex. New network and service management solutions developed through this cooperation will subsequently be marketed internationally by Ericsson as fully tested, benchmarked solutions. There are nearly 90 million subscribers using D-AMPS/AMPS networks worldwide. D-AMPS was the first technology to be commercially available as a dual-band (800/1900 MHz) and dual-mode (analog/digital) technology. Nearly 16 million subscribers are already using D-AMPS digital services. Ericsson's 100,000 employees are active in more than 130 countries. Their combined expertise in fixed and mobile networks, mobile phones and infocom systems makes Ericsson a world-leading supplier in telecommunications. FOR FURTHER INFORMATION, PLEASE CONTACT Dominique Jodoin, Vice President Sales & Market Operations Ericsson Radio Systems, Cellular Systems - American Standards Phone: +46 8 757 2311 Heather Armstrong, Director Corporate Communications Rogers Cantel Inc. Phone: +1 416 935 6379 Johan Wiklund, Press Relations Manager Ericsson Business Area Mobile Systems Phone: +46 70 560 0134; E-mail: johan.wiklund@era.ericsson.se