Zibber Mohiuddin., President and Country Manager, Ericsson Pakistan (Pvt) Ltd.

Mar 03 - 09, 2008

Ericsson solutions enable mobile operators to meet the challenges of serving a growing proportion of lower-income users, while also increasing usage among new and existing higher-income users. Ericsson Communications Expander minimizes the time, investment and risk involved for operators looking to achieve their full potential in high-growth markets. The key challenges that operators face and Ericsson is fully equipped to address are discussed below.


Mobile communication has a positive socioeconomic impact both at a micro and macro level. At the micro level, mobile communication improves everyday life by increasing job opportunities and individual income, building stronger social networks, enhancing security and reducing the need for travel. At a macro level, mobile communication boosts efficiency, increases employment, enables leap-frog technology development in rural areas, stimulates GDP growth, and drives societal development overall.

The vast majority of subscribers predicted for GSM over the next few years will come from new high growth markets. These people may have lower purchasing power on average than todayís subscribers, but their sheer numbers mean they represent a substantial growth opportunity. Operators are thus looking for ways to address low-income subscribers successfully.

Addressing these new subscribers in high growth markets means serving more customers - with additional services - in existing coverage areas, as well as adding new customers by expanding coverage.


By maximizing network utilization - making existing assets work harder - operators can boost their profitability from existing coverage areas. For many operators, this means attracting new subscriber segments within these areas, for instance by stimulating traffic outside geographic and time-of-day peaks.

The challenge is also to address new lower-income segments, while still retaining the higher-ARPU customers. This can be addressed in four key ways: by having different brands for each customer segment; by having different pricing models for each segment; by setting different levels of service quality (which is technically possible, but not widely used); and by offering differentiated service distribution and customer care levels.


Research conducted through Ericsson Consumer Lab in high-growth markets has discovered the importance of the mobile phone to users as a way of investing in their future. People calculate that they have to spend money to make money - mobile communications is less for social calls and more a tool for securing a better livelihood. The research found that people can double or triple their income by being connected to a mobile phone network.

Ericsson Consumer Lab surveys also show that people in lower-income segments are willing to spend a higher portion of their income - 5-20 percent, compared with the average 2-10 per cent - on mobile communication because it opens up new income opportunities, especially for the self-employed and micro-businesses.


In high-growth markets, it is important that the mobile network can be scaled to meet growing demand cost-efficiently, and this means designing and building a network that provides lowest possible Total Cost of Ownership (TCO) from the start.

Both urban and rural networks need to be built out in a way that still enables them to make money on services provided to low-income segments. Operators in high-growth markets have the opportunity to leap-frog technologies and use best-in-class designs, based on all-IP technology. It is therefore to design and expand a network that is energy-efficient as a key contribution to low TCO. The next step is to deploy energy-efficient radio equipment to optimize the operation of each site, which also opens up opportunities to use alternative energy sources.


Ericssonís approach is to use cutting-edge technology, with large-scale efficiency. Our solutions are prepared for future needs, enabling operators to upgrade their initial voice networks with data capabilities, as well as to evolve to mobile broadband based on HSPA.

The Ericsson Communications Expander solution minimizes the time, investment and risk involved for operators looking to achieve their full potential in high-growth markets.

- Services such as Ericsson's Voice SMS, which lets subscribers exchange voice messages cheaply and simply, help operators increase traffic. Carriers can also develop airtime credits and transfers.

- International remittances from one mobile phone to another - a service Ericsson's platform supports - is yet another promising area for low-ARPU markets.

- Today, more than 200 million migrant workers send a total of USD 230 billion home each year to 800 million people. Globe Telecom of the Philippines is among a small but growing group of telcos that offer mobile remittances. The GSM Association and MasterCard recently launched a pilot program to help operators tap deeper into this budding market. According to GSMA estimates, the program could boost total international remittances to more than USD 1 trillion by 2012.

Ericsson continues to offer solutions for operators who must expand their networks efficiently. Capacity-growth solutions have been added to help customers in low-ARPU markets expand their existing networks. Our aim is to have a complete offering for low-ARPU users. Ericsson can provide technical solutions and professional services to ensure minimal operation and maintenance effort from the start.