Arun Bhikshesvaran is VP of Strategy and CTO for Ericsson North America. He has been with Ericsson since 1995 and has more than 15 years experience in the wireless communications industry.
Q: It seems the infrastructure market has experienced some turbulence over the past several years. How do you view the strength of the infrastructure market today?
A: If we segment and then analyze the infrastructure market in two segments — wireless and fixed — we see exciting developments in each. Mobile data is just beginning to show its positive effects on the American lifestyle. Mobile networks have been substantially upgraded over the last three years and the power of these next-generation networks is just beginning to be harnessed in a manner that makes life simpler and richer. In addition, powerful new devices and applications are emerging. Multifunction mobile terminals together with the capacity offered by the networks will continue to drive demand for various network infrastructure components. On the fixed broadband side, on-demand consumption of next-generation TV experiences is in the early stage. Rich entertainment experiences are being offered by leveraging the broadband pipe to the home, which will drive the demand for optical access and transport infrastructure. The infrastructure market today is ideally positioned to ride on these developments during the next two to three years.
Q: How is Ericsson positioned along the technology front in North America as wireless carriers begin their transition from 3G to 4G networks?
A: Ericsson has been at the forefront of developing the infrastructure and device platforms for next generation wireless networks built on LTE. At the same time, we have led 3G deployments and the evolution of HSPA speeds both on uplink and downlink to 3.5G levels. This expertise positions Ericsson well in providing operators with a clear technology path from 3G to 4G. These transformations also require efficient solutions for RAN Backhaul — an area where Ericsson has unique expertise combining the best of our microwave, carrier Ethernet and routing platforms. Finally, the IP-oriented architecture is a sweet spot for Ericsson given our advanced SmartEdge routing platform and the IMS-based Services Platform in which we have pioneered.
Q: LTE, WiMAX, UMB. Is there a place in the industry for the bevy of next-generation technologies?
A: In today’s world, different needs are met by different technologies — e.g. iDEN pioneered push to talk, narrowband networks are used for voice while wideband networks are being used for high speed data. While these individual applications are good, offering them on different bands tends to fragment the market and makes the customer’s life complicated. This also complicates achieving attractive economies of scale for some platforms. What is exciting about the 4G opportunity is that for the first time in our industry, several if not all of these issues will be addressed in a single standard. LTE is emerging as a candidate that can unite multiple applications on a single standard effectively and has overwhelming industry support. The long-term viability of other technologies is dependent on what they can do that is different from existing offerings.
Q: Some carrier executives have recently called on a more unified approach to network evolutions that might include a variety of standards. What is Ericsson’s position on a move to a more unified approach?
A: Market momentum behind the spectrum, devices, investment capability and flexible technologies is determining a clear way forward. LTE currently enjoys significant momentum with operator trials and backward compatible solutions to HSPA, CDMA2000 and TD-SCDMA. For the first time in our industry, we’re facing the best prospect for a unified approach through LTE, which in many ways becomes an evolutionary pathway of the standards that represent the overwhelming majority of wireless operators, end-users and enterprise customers today.
Q: Where do you see a majority of Ericsson’s business coming from in the near-term?
A: We continue to see mobile broadband infrastructure expansion driven by new devices and applications as a major opportunity.
Expansions in the fixed broadband side will lead to business in the GPON space. Related transport network infrastructure and services to accompany all of the above will be significant.
Q: What impact if any do you expect from the 700 MHz auction on infrastructure business?
A: We have a good lineup of technologies that match the announced strategies of some of the key winners in the auction. The infrastructure business has opportunities to grow in this space in a strong manner. The pace will be determined by our customers’ deployment strategies.
