Ericsson: New business models possible for mobile broadband

STOCKHOLM, SWEDEN, Jul 14 (MARKET WIRE) —

* Telkomsel turns to Ericsson for cost-efficient data traffic management
Solution

* Better service offerings available to more than 86 million Indonesians,
based on their network use and needs

* Operator can handle traffic more efficiently, ensuring users get the
services they pay for, even during network peak hours

With more than 5 billion mobile subscriptions globally and traffic growth
skyrocketing, there is a critical need for operators to prioritize traffic
in the network and differentiate between subscribers so that each user
gets the speed, access and quality they are paying for. Now Indonesia’s
leading operator Telkomsel has taken action by being the first to
introduce a new Dynamic End-to-End Policy Control solution enabling
service differentiation for their 86 million subscribers. The solution
will be delivered by Ericsson (NASDAQ: ERIC).

Telkomsel’s efficient utilization of radio and transport networks will be
enhanced through deployment of the policy control solution. Ericsson’s
data traffic management solution design is based on the principles of
supply and demand where available capacity is shared according to
subscribers’ different policy agreements. Data traffic is prioritized so
that higher-paying subscribers get access, high speed and quality even
during network peak hours, while other users receive different priority.

Sarwoto Atmosutarno, President Director of Telkomsel, says: “As traffic is
growing with more capacity-demanding services and higher download speeds,
we must adjust to our users’ different expectations and needs. With our
new solution, subscribers will be able to choose a pricing option that
best suits their individual needs, depending on what services or
applications they’re using and how much they’re willing to pay.”

Johan Wibergh, head of Ericsson’s Business Unit Networks, says: “The
competition is intensifying, and operators need to ensure that users get
the quality of service that they expect and are willing to pay for. By
customizing the pricing plan for each specific user segment, Telkomsel
will improve their operations and business, and most likely attract even
more subscribers.”

Ericsson is the supplier and prime system integrator of the complete
Dynamic End-to-End Policy Control solution which is verified for a
multi-vendor core and radio network environment. Ericsson’s Dynamic
End-to-End Policy Control solution is compliant with the 3GPP standard
and allows for a smooth migration to the next generation of mobile
broadband, based on LTE technology.

Notes to editors:

Our multimedia content is available at the broadcast room:
www.ericsson.com/broadcast_room

Ericsson is the world’s leading
provider of technology and services to telecom operators. Ericsson is the
leader in 2G, 3G and 4G mobile technologies, and provides support for
networks with over 2 billion subscribers and has the leading position in
managed services. The company’s portfolio comprises mobile and fixed
network infrastructure, telecom services, software, broadband and
multimedia solutions for operators, enterprises and the media industry.
The Sony Ericsson and ST-Ericsson joint ventures provide consumers with
feature-rich personal mobile devices.

Ericsson is advancing its vision of being the “prime driver in an
all-communicating world” through innovation, technology, and sustainable
business solutions. Working in 175 countries, more than 80,000 employees
generated revenue of SEK 206.5 billion (USD 27.1 billion) in 2009. Founded
in 1876 with the headquarters in Stockholm, Sweden, Ericsson is listed on
OMX NASDAQ, Stockholm and NASDAQ New York.

www.ericsson.com
www.twitter.com/ericssonpress
www.facebook.com/technologyforgood
www.youtube.com/ericssonpress

FOR FURTHER INFORMATION, PLEASE CONTACT

Ericsson Corporate Public & Media Relations
Phone: +46 10 719 69 92
E-mail: media.relations@ericsson.com

Ericsson Investor Relations
Phone: +46 10 719 00 00
E-mail: investor.relations@ericsson.com

About Telkomsel:

Telkomsel is the largest cellular operator in Indonesia with more than 86
million customers and 31 thousands base transmitter towers spread
nationwide. Telkomsel is owned by PT Telkom (65%) and SingTel (35%).

In line with its focus to lead the Indonesian cellular telecommunication
industry entering the era of mobile broadband, Telkomsel has consistently
implementing technology roadmap of 3G, HSDPA, HSPA+, and is currently
testing the implementation of Long Term Evolution (LTE). At present,
Telkomsel HSDPA has been deployed in 24 cities across Indonesia.
www.telkomsel.com

[HUG#1431474] Press release in PDF:

http://hugin.info/1061/R/1431474/377894.pdf

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(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.

All reproduction for further distribution is prohibited.

Source: Ericsson via Thomson Reuters ONE

Copyright 2010, Market Wire, All rights reserved.

UPDATE 1-Indonesian telecoms firms lift subscriber forecasts

JAKARTA, July 14 (Reuters) – Two of Indonesia’s biggest telecoms firms PT Telkomsel and PT XL Axiata (EXCL.JK) on Wednesday lifted their forecasts for mobile subscribers in 2010, reflecting strong consumer demand growth in Southeast Asia’s biggest economy.

The bullish forecasts, after better than expected subscriber numbers for the first half of the year, may not translate into higher profits as firms splash out on advertising campaigns and low pricing packages amid fierce competition in the sector.

Telkomsel, a unit of Indonesia’s top telecoms firm PT Telekomunikasi Indonesia (TLKM.JK), saw 88 million subscribers by the end of June and lifted its full year forecast to 100 million, from a forecast of 91 million made just last month.

PT XL Axiata (EXCL.JK), Indonesia’s third biggest phone company, revised its full year target for subscribers to 38-39 million, after hitting its previous full year target of 35 million by the end of June.

“It’s beyond our expectation, especially XL that has beaten our full year forecast of 34.1 million subscribers,” said Harry Su, head of research at PT Bahana Securities.

“However, the subscriber growth doesn’t instantly relate to growth in profits as telco companies always spend huge amounts of money on advertising costs.”

XL Axiata’s president director Hasnul Suhaimi also revised up the firm’s 2010 revenue growth target to 17-18 percent from a forecast of 15 percent previously, but did not comment on profits.

Investors have been ploughing into Indonesia’s stock market .JKSE, which is close to a record high, and brokers say consumer stocks are attracting the most interest as they have outperformed the resources sector this year.

Shares in XL traded up 0.6 percent by 0656 GMT, while Telkom shares gained 1.3 percent, versus the index’s 0.7 percent rise. XL’s stock has more than doubled this year, outperforming the index’s 17 percent gain, though Telkom has lagged, falling 17 percent. (Reporting by Fathiya Dahrul and Janeman Latul; Editing by Neil Chatterjee)

Ericsson: New business models possible for mobile broadband

Telkomsel turns to Ericsson for cost-efficient data traffic management solution

*

Better service offerings available to more than 86 million Indonesians, based on their
network use and needs

*

Operator can handle traffic more efficiently, ensuring users get the services they pay
for, even during network peak hours

With more than 5 billion mobile subscriptions globally and traffic growth skyrocketing,
there is a critical need for operators to prioritize traffic in the network and
differentiate between subscribers so that each user gets the speed, access and quality
they are paying for. Now Indonesia’s leading operator Telkomsel has taken action by
being the first to introduce a new Dynamic End-to-End Policy Control solution enabling
service differentiation for their 86 million subscribers. The solution will be delivered
by Ericsson (NASDAQ:ERIC).

Telkomsel’s efficient utilization of radio and transport networks will be enhanced
through deployment of the policy control solution. Ericsson’s data traffic management
solution design is based on the principles of supply and demand where available capacity
is shared according to subscribers’ different policy agreements. Data traffic is
prioritized so that higher-paying subscribers get access, high speed and quality even
during network peak hours, while other users receive different priority.

Sarwoto Atmosutarno, President Director of Telkomsel, says: “As traffic is growing with
more capacity-demanding services and higher download speeds, we must adjust to our
users’ different expectations and needs. With our new solution, subscribers will be able
to choose a pricing option that best suits their individual needs, depending on what
services or applications they’re using and how much they’re willing to pay.”

Johan Wibergh, head of Ericsson’s Business Unit Networks, says: “The competition is
intensifying, and operators need to ensure that users get the quality of service that
they expect and are willing to pay for. By customizing the pricing plan for each
specific user segment, Telkomsel will improve their operations and business, and most
likely attract even more subscribers.”

Ericsson is the supplier and prime system integrator of the complete Dynamic End-to-End
Policy Control solution which is verified for a multi-vendor core andradio network
environment. Ericsson’s Dynamic End-to-End Policy Control solution is compliant with the
3GPP standard and allows for a smooth migration to the next generation of mobile
broadband, based on LTE technology.

Notes to editors:

Our multimedia content is available at the broadcast room:
www.ericsson.com/broadcast_room http://www.ericsson.com/broadcast_room

Ericsson is the world’s leading provider of technology and services to telecom
operators. Ericsson is the leader in 2G, 3G and 4G mobile technologies, and provides
support for networks with over 2 billion subscribers and has the leading position in
managed services. The company’s portfolio comprises mobile and fixed network
infrastructure, telecom services, software, broadband and multimedia solutions for
operators, enterprises and the media industry. The Sony Ericsson and ST-Ericsson joint
ventures provide consumers with feature-rich personal mobile devices.

Ericsson is advancing its vision of being the “prime driver in an all-communicating
world” through innovation, technology, and sustainable business solutions. Working in
175 countries, more than 80,000 employees generated revenue of SEK 206.5 billion (USD
27.1 billion) in 2009. Founded in 1876 with the headquarters in Stockholm, Sweden,
Ericsson is listed on OMX NASDAQ, Stockholm and NASDAQ New York.

www.ericsson.com http://www.ericsson.com/
www.twitter.com/ericssonpress http://www.twitter.com/ericssonpress
www.facebook.com/technologyforgood http://www.facebook.com/technologyforgood
www.youtube.com/ericssonpress http://www.youtube.com/ericssonpress

FOR FURTHER INFORMATION, PLEASE CONTACT

Ericsson Corporate Public & Media Relations
Phone: +46 10 719 69 92
E-mail: media.relations@ericsson.com mailto:media.relations@ericsson.com

Ericsson Investor Relations
Phone: +46 10 719 00 00
E-mail: investor.relations@ericsson.com mailto:investor.relations@ericsson.com

About Telkomsel:
Telkomsel is the largest cellular operator in Indonesia with more than 86 million
customers and 31 thousands base transmitter towers spread nationwide. Telkomsel is owned
by PT Telkom (65%) and SingTel (35%).

In line with its focus to lead the Indonesian cellular telecommunication industry
entering the era of mobile broadband, Telkomsel has consistently implementing technology
roadmap of 3G, HSDPA, HSPA+, and is currently testing the implementation of Long Term
Evolution (LTE). At present, Telkomsel HSDPA has been deployed in 24 cities across
Indonesia. www.telkomsel.com http://www.telkomsel.com/

HUG#1431474

Indonesia’s Telkomsel sees 2010 subscribers at 100 mln

July 14 (Reuters) – PT Telkomsel, a unit of PT Telekomunikasi Indonesia (TLKM.JK), said on Wednesday that it expects 100 million subscribers by the end of the year after reaching 88 million by June.

This was higher than Telkom’s previous forecast in June for 91 million subscribers for Telkomsel by the end of the year. (Reporting by Fathiya Dahrul; Editing by Neil Chatterjee)

UPDATE 1-Singtel’s CEO for international ops to retire

SINGAPORE, June 10 (Reuters) – Singapore Telecommunications’s (STEL.SI) CEO for international operations Lim Chuan Poh, one of the firm’s top executives, will retire at the end of this year, the company said on Thursday.

Lim, 55, joined SingTel in 1998 and was appointed CEO International in 2006. He is in charge of SingTel’s overseas investments, which includes a 32 percent stake in India’s largest mobile phone operator Bharti (BRTI.BO) and 35 percent in Indonesia’s Telkomsel.

SingTel did not give a reason for Lim’s early retirement.

Other firms that SingTel holds large stakes in include Philippines’ Globe Telecom (GLO.PS), Thailand’s Advanced Info Services, Pacific Bangladesh Telecom and Warid Telecom in Pakistan.

SingTel said it has initiated a search for Lim’s replacement, both within the firm and externally.

Lim is one of three CEOs reporting to SingTel Group CEO Chua Sock Koong. The other CEOs are Allen Lew, who is in charge of Singapore, and Paul O’Sullivan, who takes care of SingTel Optus, Australia’s second largest telecom firm.

(Reporting by Kevin Lim)