Mobile content the key for Ericsson

Brian Phillips says a third mobile network is the next big telecommunications opportunity. Picture / Paul Estcourt

These are interesting times in telecommunications infrastructure land.

Politicians are fired up about improving consumer and business access to technology services. Telecom is planning a $1.4 billion new phone network but says the investment won't be worth its while if its "local loop" is thrown open to all comers.

On the other hand, internet provider ihug has committed to spending $20 million on improved services if the loop is unbundled.

TelstraClear has changed its mind about building the country's third mobile network, leaving that to long-time self-proclaimed contender Econet.

Closely watching all this jostling are the telecoms service companies - multinationals such as Ericsson, which consult, build and manage networks.

Ericsson New Zealand's customers include Telecom, Vodafone and TelstraClear, so it's not surprising that managing director Brian Phillips comes over a little circumspect when asked for his thoughts on whether the Government should regulate to unbundle the local loop, and what that could mean for Ericsson's business.

"At the end of the day, from an Ericsson perspective I just want to see our customers have certainty around their investments, certainty around the market environment in which they play and to be as successful as possible because then we can help them deliver their services with our services or infrastructure as well," Phillips says.

"Any debate or any position [on local loop unbundling or other regulatory issues] by Ericsson is a no-win situation. Some customers will benefit and some will be negatively impacted," he says.

Phillips says Telecom's stance against unbundling is an example of how even the possibility of regulation takes away telco companies' incentive to invest in new infrastructure.

"The potential for Ericsson, in my view, is greatest when the operators have certainty, when their investment choices can be made and they know they won't be disrupted, changed and then it's not a good business case."

He says the next big business opportunity for telco service companies will be around the development of a third mobile network, although again he keeps his answer diplomatic.

"That is without a doubt the opportunity. Who it's built with, when it's built, and what it is - that's still going through the mincer at the moment. It's a tricky area to talk about. I'm not gong to jump into that space."

Ericsson just announced a whopping 21-year supply and support deal with the New Zealand Police, and is looking for opportunities for its mobile content service, IPX, which is already established in Australia.

IPX (Internet Payment Exchange) sources content such as ringtones, games and mobile applications from developers and packages it for sale by network operators. Optus is an IPX customer in Australia.

"If we get sufficient interest in New Zealand we could do the same here," Phillips says.

While content provision becomes an increasingly important revenue generator for mobile network operators, Phillips said there was no particular "killer app" - breakthrough application - on the horizon.

Present popular downloads such as music files will increase in popularity as the proliferation of 3G handsets and increased network speed attract more users, he says.

"I think it's just more and more bandwidth, more and more capability, richer, cleaner multi-media capability. And the easier it is to use the more it gets used."

But don't ask Phillips to sell you a phone.

While Ericsson New Zealand's Swedish parent company jointly owns handset manufacturer Sony Ericsson, the two businesses are run separately.

* Who: Managing director, Ericsson New Zealand.

*Favourite gadget: "I'm a fairly practical person so remote controls, whether its opening the garage door, changing the TV or central locking on the car."

* Next big thing: Proliferation of mobile broadband.

* Alternative career: To shoot off and do an IT start-up with a Trade Me outcome.

* Spare time: Family, travel, jet skiing, water skiing.

* Favourite sci-fi movie: Star Wars or The Matrix.