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Ericsson Malaysia Confident for more Contracts

Telecommunications equipment provider Ericsson (Malaysia) Sdn Bhd is confident of securing more contracts within the next three years, driven by the investments of telecom operators.

Its president and country manager Krishna Kumar said telecom operators were expected to increase their expenditure in both fixed and mobile sectors to meet customers’ need for speedy and affordable access.

He estimated the total telecom contracts to be tendered in the next three years at RM6 billion and the total addressable market that Ericsson could tap be worth between RM1.5 billion and RM2 billion.

“Therefore, Ericsson is aiming to secure contracts between 45 and 50 percent of that total value” he told reporters at CommunicAsia 2007, the region’s premier information and communications technology (ICT) show held in Singapore last week.

The target is achievable as broadband needs are not just a trend but a requirement” he said.

Krishna said to meet Malaysia’s broadband needs, especially in the low connection area, mobile operators would continue to invest in High Speed Packet Access (HSPA) and third generation (3G) networks to maintain coverage level.

He also said that households with personal computer are expected to grow by 52 percent in 2009, though broadband penetrations were still limited in the country.

“We are in a strong position to secure more contracts, supported by Ericsson’s market position as the largest services provider,” he added.

Ericsson Malaysia is a major player in the Global System for Mobile Communications (GSM) segment, according to Krishna who added that the company hoped to grow its market share on the fixed sector by providing services such as Internet Protocol Television (IPTV) and Fibre To The Home (FTTH).

Ericsson also planned to double the resources of its Global Service Delivery Centre (GSDC) to strengthen services capabilities to support global service activities, including South-East Asia.

Krishna said the GSDC based in Cyberjaya currently has 150 staff and Ericsson hoped to double the number to 300 by end of this year.

“The trend will continue as there is a niche market moving to services and looking for skills, especially in the area of network technologies consulting,” he said.

Krishna said the centre needed to add resources due to the significant growth in the Asia Pacific services market.

“Ericsson will double its expansion in terms of training, competence, staff and infrastructure cost, so that we can offer cost-efficient technologies to our customers,” he said.

Malaysia is a premium market for South-East Asia, Krishna said, adding that the country was set to become a base to export skills in telecom services.-Bernama

About Kugan

Kugan is the founder of MalaysianWireless. He has been observing the mobile industry since 2003. Connect with him on Twitter: @scamboy
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