Light Reading

Ericsson Denies $1.5B Korean Investment

Catherine Haslam
News Analysis
Catherine Haslam
7/13/2009
50%
50%

Ericsson AB (Nasdaq: ERIC) has denied reports it is set to invest $1.5 billion in research and development (R&D) in South Korea during the next five years and increase its headcount in the country by more than 1,000 percent.

The reports surfaced following a meeting between South Korean President Lee Myung-bak and an Ericsson leadership team headed by CFO and CEO in waiting Hans Vestberg. (See Ericsson Names New CEO and Ericsson Cooperates on Green.)

The two sides met in Sweden and agreed on areas of collaboration to develop technologies that would create a green ecosystem in Korea. These include mobile broadband technologies, such as LTE and 4G solutions, and machine-to-machine applications.

However, the two sides appear to have come away with different views on the specifics of their cooperation.

In an official statement from the Presidential office, the Korean government states that Ericsson plans to invest 2 trillion Korean won (US$1.52 billion) during the next five years, and increase its headcount in South Korea from 80 to 1,000. But this has been denied outright by Ericsson.

"The information is not accurate," an Ericsson spokeswoman tells Light Reading Asia. "We have no specific plans on investment," she continues, instead saying that the meeting was a high-level discussion to identify common thinking and establish areas of cooperation, and that the meeting had been successful in achieving that goal.

Ericsson is, however, establishing a new center in South Korea for the development and testing of new applications for a green economy.

The Korean government states that the R&D center will be used for joint research with local companies, with Ericsson using Korea as a test-bed for green technology and fourth-generation wireless developments.

The spokeswoman confirmed that Ericsson is looking to identify synergies with Korean companies, such as those that are highly advanced in chipset development and robotics, but could be no more specific on the details at this stage.

The Korean government statement concludes that cooperation between Korean WiBro technology developers and Ericsson's LTE (Long Term Evolution) R&D team will help the two sides lead in the development of 4G wireless.

WiBro is Korea's version of WiMax that has been deployed by the country's two major mobile operators, KT Corp. and SK Telecom (Nasdaq: SKM). However, both have struggled to attract customers for their WiBro services. (See KT Tightens Purse Strings and WiMax Deployments Hit by Downturn.)

By contrast, the two carriers' HSPA (High-Speed Packet Access) networks have been much more successful, attracting more than 19 million subscribers, about 41 percent of the total mobile market, by the end of the first quarter 2009, according to Wireless Intelligence .

This has led to retrospective attempts to converge the technologies, such as the development of an integrated WiFi, WiBro, and HSPA handset by KT, as reported by the Korea Herald.

— Catherine Haslam, Asia Editor, Light Reading

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
From The Founder
Light Reading sits down at CES with the head of Cisco's service provider video business, Conrad Clemson, to discuss how NFV and cloud security relate to video, the challenge of managing 4K/8K traffic, the global expansion of Netflix and virtual reality.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
Between the CEOs
CEO Chat With Level 3's Jack Waters

2|8|16   |   26:15   |   (1) comment


Light Reading CEO and founder Steve Saunders sits down with Level 3 Communications' CTO Jack Waters to discuss hot topics like virtualization, 4K and the future of telecom...
LRTV Custom TV
The Composable Telco

2|8|16   |   24:46   |   (0) comments


Heavy Reading's Principal Analyst Caroline Chappell presents the keynote at Light Reading's 2020 Vision Executive Summit in Dublin.
LRTV Custom TV
Join Us at the Digital Operations Transformation Summit

2|4|16   |   03:52   |   (0) comments


The Digital Operations Transformation Summit on February 21, 2016 at the Crowne Plaza Barcelona Fira Centre will bring together 50 senior executives to engage in a unique debate on the opportunities and challenges presented by the transformative evolving digital landscape. RSVP now at events@lightreading.com.
LRTV Custom TV
Making the Test: ADVA Ensemble Connector vs. Open vSwitch

2|4|16   |   01:28   |   (0) comments


Light Reading, in partnership with EANTC, recently tested ADVA's Ensemble Connector, which replaces open vSwitch and offers carrier-grade capability and interoperability. The test results strengthen ADVA's credibility as a provider in the virtualization space.
LRTV Custom TV
Bridging the Gap Between PoCs & Deployment in NFV

2|4|16   |   31:50   |   (0) comments


Charlie Ashton of Wind River presents the keynote at Light Reading's 2020 Vision executive summit in Dublin.
Between the CEOs
CEO Chat With Mike Aquino

2|3|16   |   17:34   |   (0) comments


The former CEO of Overture Networks, Mike Aquino, discusses why truly open virtualization solutions provide service providers with the greatest choice.
Shades of Ray
MWC: Buckle Up for 5G & the IIoT

2|2|16   |   02:28   |   (0) comments


This year's Mobile World Congress looks set to be a 5G land grab and a chance to get down and dirty with the Industrial Internet of Things (IIoT) – but what will the 5G discussions actually be about?
LRTV Custom TV
Case Study: Building China's Next-Gen TV Networks

2|2|16   |   5:01   |   (0) comments


With over 2 billion viewers worldwide, Shenzhen Media Group is one of China's largest content producers. By partnering with Huawei and Sobey, SZMG was able to modernize media operations with the Converged News Center, a production studio that is a model for next-generation workflows.
LRTV Custom TV
Quad Channel Modulator Driver with 46 Gbaud Capability from MACOM

1|28|16   |     |   (0) comments


MACOM's MAOM-003427 is the industry's first surface-mount modulator driver with 46 Gbaud capability to support next generation 200G and 400G applications.
LRTV Custom TV
Video Infographic: Validating Cisco's NFV Infrastructure

1|26|16   |   02:24   |   (1) comment


We all know that the network of the future will be virtual, but when will virtual become a reality? This video infographic covers the four key areas in which Light Reading, in partnership with EANTC, tested Cisco's NFV infrastructure: performance, reliability, multi-service capabilities and single pane of glass management.

For the full report, see

Between the CEOs
CEO Chat With Phil McKinney, CableLabs

1|22|16   |   13:36   |   (1) comment


At CES in Las Vegas, we met with Phil McKinney, CEO of CableLabs. Phil provides an update on the rollout of DOCSIS 3.1, his views on the future of open source and how consumer interest in virtual reality could affect network traffic.
Between the CEOs
Ericsson CTO on the Changing Telecom Market

1|21|16   |   10:26   |   (0) comments


At CES 2015, CTO of Ericsson, Ulf Ewaldsson, sits down with CEO of Light Reading, Steve Saunders, to discuss the changing telecom market, the new partnership with Cisco and the future of the telecom industry.
Upcoming Live Events
March 10, 2016, The Cable Center, Denver, CO
April 5, 2016, The Ritz Carlton, Charlotte, NC
May 23, 2016, Austin, TX
May 24-25, 2016, Austin Convention Center, Austin, TX
All Upcoming Live Events
Hot Topics
Google's 5G Radio Ambitions Are Expanding
Dan Jones, Mobile Editor, 2/5/2016
Cincinnati Bell Joins Weight Watchers Club
Alan Breznick, Cable/Video Practice Leader, 2/5/2016
Vodafone: Flexible Work Policies Boost Profits
Sarah Thomas, Editorial Operations Director, 2/8/2016
It's Time to Integrate OTT Video
Alan Breznick, Cable/Video Practice Leader, 2/8/2016
WiCipedia: Faulty Feminism, Worthy Women & Peculiar Perks
Sarah Thomas, Editorial Operations Director, 2/5/2016
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Light Reading CEO and founder Steve Saunders sits down with Level 3 Communications' CTO Jack Waters to discuss hot topics like virtualization, 4K and the future of telecom...
The former CEO of Overture Networks, Mike Aquino, discusses why truly open virtualization solutions provide service providers with the greatest choice.
Animals with Phones
Retro Is the Way to Be Click Here
Some animals are too cute for smartphones.
Live Digital Audio

Broadband speeds are ramping up across Europe as the continent, at its own pace, follows North America towards a gigabit society. But there are many steps to take on the road to gigabit broadband availability and a number of technology options that can meet the various requirements of Europe’s high-speed fixed broadband network operators. During this radio show we will look at some of the catalysts for broadband network investments and examine the menu of technology options on offer, including vectoring and G.fast for copper plant evolution and the various deployment possibilities for FTTH/B.