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February 14, 2012
Chinese firm beats Ericsson to 4G deal
Published: 18 Dec 09 13:12 CET | Double click on a word to get a translation
Online: http://www.thelocal.se/23926/20091218/
Ericsson's Chinese competitor Huawei has made deep inroads into the Swedish company's home turf after securing a deal to deliver a major 4G network in Sweden.
- Ericsson shares nosedive on weak report (25 Jan 12)
- Ericsson and ZTE settle patent dispute (21 Jan 12)
- Sony Ericsson ends 2011 with massive loss (19 Jan 12)
"It has been a long procurement process in which we discussed both technology and price before settling on Huawei," Tele 2 Sweden CEO Niclas Palmstierna told the TT news agency.
"All actors in this process are strong on technology and have comparable offers. But we opted for Huawei because they met with all of our important parameters," he added.
Net4mobility aims for its high speed 4G mobile network to be available to 99 percent of the population by 2013, with work on the project set to start next year in the major Swedish cities.
Ericsson said it regretted the decision not going its way.
"We went as low as we possibly could in price during the negotiations but it wasn't enough," said Mikael Bäckström, head of Ericsson in the Nordic and Baltic regions, in a statement.
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Your comments about this article:
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so i think its a big achievement for Huawei.
If it succeeds then Huawei will be the preferred choice for 4G elsewhere in world.
Why are you asking me these questions you should be directing them to these morons........
Monica Bergström, Peter Bonfield, Kristina Davidsson, Börje Ekholm, Anna Guldstrand, Jan Hedlund, Katherine Hudson, Ulf Johansson, Per Lindh, Sverker Martin-Löf, Nancy McKinstry, Torbjörn Nyman, Anders Nyrén, Carl-Henric Svanberg, Michael Treschow and Marcus Wallenberg.
But since you took the bait I am happy to reply.
The original intentions of the SE deal was to act as a door opener for Ericsson in the network distribution market among other things.......the grand plan has failed....what next? I think I know but since you guys think you are so smart please tell me..........
The problem that Huawei is facing is that they now have to open offices in expensive countries just for their support network, so their personnel cost will probably skyrocket in a few years (if not already in 2010). And salaries in China are shooting up as well as employees run to a competitor for just a few bucks more.
I have seen a report where efficiency between companies was compared. For every R&D employee Ericsson has, Huawei has (and needs!) 3 employees, just to get the same job done. This works as long as Chinese salaries are more than 3 times as low, but as we have seen in India: this won't be the case for much longer.
It's just a case of hoping that Western telephony companies can sit it out and are still around when Huawei has to admit that they're just as expensive as Western companies. Unfortunately, they - or at least Ericsson - now choose to dump it's qualified and very knowledgeable personnel over here, and hire new people with no product knowledge whatsoever in low cost countries. By the time they're up to speed, they will no longer be low-cost, I'm sure.
they have very strict working hours, and no internet access for the employees, no external or whatsoever drive or disk can be brought into the Huawei office.
I agree with the most staffs you write, except that Huawei has (and needs!) 3 employees, just to get the same job done...
I guess the situation is the opposite, at least in the R&D area.
Ericsson is one company, SonyEricsson is another.
If SonyEricsson goes bankrupt, Ericsson will still be making 4G deals around the world.
Ericsson is still leading in both LTE and IMS. But worries are rising since more and more deals might be lost in the future.
By the way last year Ericsson made a huge profit on 3G and GSM deals in mainland China. It's business, this doesn't mean the company is going down, neither it does mean that it's going up. Simply a competition where Ericsson AB is still leading (so far).
http://www.thelocal.se/11100/20080414/
Ericsson on the other hand charge more for new sales systems and much less for upgrades/expansions than Huawei, which when you account for that technology is rapidly growing daily, and the amount of upgrades for 4G/3G even 2G systems still happen up to three times a year....bleh...im rambling on..
Moral of the story. Huawei is cheaper, Short term. I guess you could compare it to a crack addict. Give him a cheap score and once the addict is hooked, raise the prices. Ericsson is much cheaper in the long run and I believe have much better quality, although they have lots of improvements to make.
To those referring to SonyEricsson, I have NO idea why this venture still exists..Crap phones, bad management, a total waste of money. Just dont get the two companies confused with eachother.
>some things which i notced in the company was Management is not good in the sense that they make people work like machines
>The officials could understand the local problems coming in project roll out ...almost till the middle of the project
>They didnt hired enough higly paid professionals .. hence made alot of mistakes in implementation of network and increasing the rollout costs... (by reinstalling equipment again)
> There was not enough reseach made about the project by the huawei officals hence they faced alot of problems.. and the operator too ..
>The company which used huawei had been using Nortel as vendor... before...which had made the quality and made their sales high....but after the installation of huawei euipment the Qos was ruined..
>Its like even now if we have to make a call in pakistan using that operator its like 4 or 5 times of redialing (even after huawei expanded and doubled the network capacity)
> Hence in my opinion they have taken the project of 4G for telenor.. but i am 100% sure that they have made no proper feasibilty report..and will face many problems...even wil the operators....
> For the people being employed in huawei ...well hope so huawei understands how the employes should be treated.