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Peggy Sito

Leading mainland and Hong Kong telecommunications companies have expressed interest in adopting Ericsson's multi-service infrastructure network for the Internet, which could cut operating costs by as much as 50 per cent according to Ericsson China president Michael Ricks.

China Telecommunications (Group), China Mobile Telecommunications (Group) and China Network Communications are negotiating with Ericsson over the advanced infrastructure network, while Cable & Wireless HKT is also interested.

Mr Ricks said half a dozen Ericsson customers had expressed interest in the Engine project.

Engine is designed to migrate operators' circuit-switched networks into a single next-generation ATM and IP packet switching network.

ATM and IP are infrastructure-enabling broadband services, designed for real-time services and large-volume traffic.

In January last year, Ericsson secured a contract to provide the infrastructure to British Telecommunications. Other customers include Telefonica.

Mitch Lewis, general manager and director of marketing for Ericsson's wireline system, said the company was facing competition from many companies such as United States firms Lucent Technologies and Cisco Systems.

Ericsson is also expanding its Internet mobile-access activities globally with a particular focus on the mainland.

Mr Ricks expected the mainland was ready to switch on to the Internet through mobile media and estimated more people would access the Internet via mobile phone than through a fixed-line connection by 2002.

This compares with the company's estimation of 2003 in the global market.

He estimated mobile phone subscribers in the mainland would reach 70 million this year from 43 million last year.

He expected about 30 to 35 per cent of mobile phone users would access the Internet through their phones within 18 months.

Mr Ricks said Ericsson was concerned by Beijing's intention to issue new rules regarding non-stable investment in telecommunications, including the Internet, and maintained regular contact with authorities to keep abreast of developments.



Ericsson entices firms with Internet Engine network project