MWC 2012 Preview: Ericsson outlines new strategy for its multimedia business

Manufacturer renames multimedia business unit as Support Solutions, which will focus on OSS/BSS, TV and media and M-Commerce

MWC 2012 Preview: Ericsson outlines new strategy for its multimedia business

Ericsson has announced that it is to focus its multimedia business unit on Operations Support Systems/Business Support Systems (OSS/BSS), TV & Media and M-Commerce. The division will now be called Business Unit Support Solutions.

Per Borgklint, Head of Ericsson's Business Unit Support Solutions, said: ‘With the new strategic focus, we will strengthen our leadership as we build on our installed base and competence. We will capture the growth momentum in the selected areas and leverage on our acquisition of Telcordia. We already have a leading position in key areas such as charging and billing, where we serve 1.6 billion people with our solutions.

‘The new name Business Unit Support Solutions reinforces our commitment to support our customers' business growth through value creating solutions for customer experience, content management and delivery and mobile payments,’ said Borgklint.

The company said that with the increased need for operators to rapidly respond to changing consumer demands and the need for increased efficiency and innovation, operations and business support systems is a key element of any operator's network and business strategy.

With the completion of the Telcordia acquisition that was announced on 12 January 2012, Ericsson consolidated its position as a leading player in the OSS/BSS market with key positions in service fulfillment, assurance, network optimization and real-time charging, as well as significant capabilities to support operators from end-to-end.

At a briefing in London yesterday (21 February 2012), Jaco Fourie, Head of Business Development and Strategy, Business Unit Multimedia, said: ‘We discovered that what customers want the most help with from operators is when they change their package. They want to avoid hidden clauses, recommendations on cost savings and deals and they want to be in control of their package and their spending.

‘We need to help service providers be more proactive: to be able to contact the customer first if there is a problem, rather than the customers having to contact the service provider. If the service provider can tell the customer there is a problem but it is being addressed and here is a compensation offer, then the customer feels looked after and that helps retention and stickiness.’

He added that customers want to change things all the time, so service providers need to have the flexibility to respond to this.

TV & Media
Within five years, 90% of the network traffic will be video content. In TV and media, Ericsson said it was committed to enabling operators and content owners to monetize video content through truly blended, multi-screen TV services remains. As the increase in global broadband connectivity enables consumption of more video content on more devices, the challenges and opportunities in this growth sector continue.

Ericsson predicts the m-commerce industry to process more than US$800 billion globally by 2016. In this market Ericsson said its ambition remains unchanged; to accelerate access and interconnection between the m-commerce eco-system and the existing financial world. Ericsson's evolved M-Commerce strategy reflects the understanding that a focus on fast-tracking access to the eco-system rather than scaling an Ericsson branded consumer service is the most effective way to bring our experience as a technology enabler to our partners. In line with this strategic evolution, on 3 April 2012, Ericsson will close its consumer Money Service.

In this way Ericsson said it can offer its eco-system partners a faster route to provide their consumers with more m-wallet and platform independent services and greater payments choice.

Borgklint added: ‘1.6 billion subscribers are served by Ericsson's charging and billing solutions. Our new solution Ericsson Converged Wallet allows telecom service providers to easily offer pre-paid customers m-wallets accounts. We believe our M-Commerce strategy will equip our partners - operators, financial institutions, online entertainment companies or merchants - to optimize all the opportunities this predicted market growth will offer with their consumers.’

Written by Wireless magazine
Wireless magazine

Leave a Comment