Ericsson, NSN Win Key 4G LTE Deals with TeliaSonera in Scandinavia

TeliaSonera has announced plans to extend its 4G LTE mobile broadband networks in Sweden and Norway, and has selected local vendors Ericsson and Nokia Siemens Networks (NSN) to supply the necessary infrastructure. Under the agreements, which will cover extensive roll out during 2010 and 2011, Ericsson will deliver the common 4G core network, while NSN will deliver the radio networks. The 4G/LTE system is based on 3GPP standards for LTE radio technology and System Architecture Evolution (SAE) core technology.
The Nordic region's biggest telecoms operator TeliaSonera says its 4G roll-out will now continue to Sweden's 25 largest cities and recreation areas, and to Norway's four largest municipalities, following the launch of the world's first commercial LTE services in the capitals Stockholm and Oslo at the end of last year (see Sweden: 14 December 2009: TeliaSonera Claims World First as LTE Network Goes Live).

Outlook and Implications

• Ericsson Bounces Back on its Home Turf: The contract marks a significant victory for Ericsson, as the world's telecoms equipment vendors go head-to-head to secure sales of the key emerging 4G technologies, as operators are expected to spend billions on LTE networks as demand for high-speed mobile broadband and data services explodes. The world number-one vendor Ericsson was left somewhat humiliated by the recent award of Tele2 and Telenor's Swedish LTE network upgrade to Huawei (see Sweden: 21 December 2009: Competition Heats Up in Vendor 4G LTE Market as Huawei Grabs Tele2/Telenor Swedish Order)—something the Chinese vendor considered a huge victory in Ericsson's home market. Huawei is winning its fair share of 4G contracts in Europe (see United Kingdom: 14 December 2009: O2 UK Announces Successful Trial of LTE with Huawei), and the decision of TeliaSonera to award its core network contract to Ericsson is a major win for the Swedish vendor, which will still be smarting from the loss of business to its key Chinese rival in the region.
  A Boost for Nokia Siemens LTE Offering: TeliaSonera had also previously selected Huawei to construct its LTE city network in Oslo—and the operator's decision to use NSN instead for the latest round of its Norwegian roll-out is a huge boost for the struggling European vendor. While Ericsson has been protected from the worst of the global economic slowdown by some key rolling contracts and its sheer size, NSN—a joint venture between Finnish handset giant Nokia and German engineering firm Siemens—has felt the sharp end as operator capex is cut and orders dry up, leading to some speculation concerning the very future of the vendor (see World: 17 December 2009: Nokia Refers to NSN Performance as "Insufficient" But Restates Commitment to JV—Report). NSN has itself previously stated that it believed their was only room for three or four global telecoms network vendors in the increasingly crowded market—and, along with key European rival Alcatel-Lucent, NSN is currently joint favourite to be the first to fall.
  TeliaSonera Puts the Nordics at the Forefront of 4G: TeliaSonera recently claimed the world's first commercial launch of mobile LTE services in Olso and Stockholm, as the operator says the use of mobile broadband in the Nordic countries is exploding and customers demand higher speeds and capacity. TeliaSonera was also the first operator to make a live 4G connection in Finland, and holds three nationwide LTE licenses in the key 2.6-GHz frequency band across the Nordics, in Sweden, Norway, and Finland. As the operator faces significant competition from local rivals Telenor and Tele2, who are snapping at its heels with their own LTE roll-out, healthy competition driven by demand for high-speed mobile broadband is driving development in the region. The latest roll-out will mean TeliaSonera has a widespread LTE network, not just one limited to a single, restricted urban area, meaning the operator—and the region—have once again scored a 4G first.