Ericsson ambitious on 5G deployment in China

Updated 2016-12-27 10:03:34 chinadaily.com.cn
A consumer experiences a virtual reality game device that applies 5G technology at a high-tech fair held in Shanghai in May last year.

A consumer experiences a virtual reality game device that applies 5G technology at a high-tech fair held in Shanghai in May last year.

As the mass deployment cycle of 4G technologies slows, we are preparing for 5G, or the fifth generation mobile communication technology, to take off, an Ericsson executive said.

Chris Houghton, Ericsson's senior vice president and head of region North East Asia, said the company is currently increasing its R&D resources to prepare for 5G in China.

The new generation of the internet will allow users to download massive digital content in seconds and execute tasks that are thrilling but remain difficult in the 4G era, such as operating driverless automobiles and implementing applications related to the Internet of Things.

Since the Sweden-headquartered telecommunications conglomerate will have been in China for 125 years by next year, Houghton believes it is a dynamic, challenging and highly competitive market and will increasingly drive the future of global communications.

Recently he spoke to China Daily about his vision and strategy and new opportunities for Ericsson in China.

The following are edited excerpts of the interview:

Chris Houghton, Ericsson's senior vice president and head of region North East Asia.

How do you view China's rapid economic growth and its recent slowdown? Will this affect Ericsson's development in the market? What are your business strategies as you readjust to new Chinese economic realities, like the New Normal?

China's growth over the past 30 years has been remarkable and the benefits are there for all to see -- people's lives have been improved tremendously.

A slowdown from such a rapid growth rate is to be expected but 6.5 percent GDP growth is still a comparatively high rate of growth in a low growth world and therefore highly attractive to global companies.

Mobile communication is one of the last areas to be affected by changes in growth rates. People still have the need to communicate even in lower growth times and it's not one of the portions of disposable income they tend to cut back on, so we don't see a dramatic change to our business from the slowdown.

In addition, the digitalization of our daily life continues at a rapid pace and there is a need for more advanced technologies. As the mass deployment cycle of 4G technologies slows, we are preparing for 5G to take off.

Chris Houghton, Ericsson's senior vice president and head of region North East Asia.

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