Johannesburg, 14 Sep 2009
International technology business Ericsson has been spending on wireless telecommunications infrastructure across Africa.
Incoming global CEO and president Hans Vestberg says it would have been unreasonable for the company not to see an impact on capital expenditure layouts for investments in infrastructure.
Vestberg is travelling across Africa to visit Ericsson's local customers to gauge exactly what impact is being felt on the African continent.
He says Africa also provides the company with annuity revenue through service contracts, which keeps the company on a good footing on the continent.
Despite the slowdown, there are still heavy investments in 2G network upgrades, and the company says there are now increased discussions about implementing mobile broadband. “We have a good opportunity in the region,” says Vestberg.
Ericsson has close ties with local mobile business, MTN, giving it access to several key African markets. It has also been involved in several projects and deals across the continent since the beginning of the year.
The company signed a five-year outsourcing partnership with Zain, in Nigeria, in which it will manage most of the network and field operations for Zain's wireless networks and operational support systems. The deal will see Ericsson serve almost 4 000 sites across Nigeria.
The company has also been working on initiatives that are expected to see reductions in base-station power consumption. Ericsson is using the low-powered, battery-operated base-stations on Lake Victoria as a pilot project to help keep fishermen safe on the lake.
According to Vestberg, the company is still committed to these African initiatives and plans to roll-out more of them in the future.
Vestberg is currently CFO and executive VP, and will take up his role as CEO and president at the beginning of next year.
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