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26 Sept 2024
‘Ericsson to celebrate 90 year anniversary’ by Christer Nilsson from STEP Magazine Vol. 7/No. 1, March 1998
“This was just the beginning. The next 90 years will be even more exciting for Thailand," said Dr. Lars Ramqvist CEO of Ericsson when he met Thai press in Bangkok.
Ninety years after the first Ericsson switch, with a capacity of 2,400 lines, was installed in Bangkok, Ericsson's present CEO, Dr. Lars Ramqvist visited Thailand to celebrate the event.
Dr. Ramqvist told the audience that the currency unrest in Asia will have less effect on the telecom industry than on industry in general.
"That was also the case when Sweden faced a similar crisis in the early 1990's. Investment in telecommunications infrastructure went on even as banks and finance companies had to restructure. I believe this will be the case in Asia as well."
In his presentation Dr. Ramqvist also touched upon the next generation of mobile phones, which will be supported by a standard called WCDMA.
"WCDMA was approved by the world's leading telecom suppliers at a meeting in Paris last week. This technology will give you mobile phones with full motion video in a addition to perfect sound. Trial networks are rolled out this year in Europe and Asia," said Dr. Ramqvist.
Telecommunications operators in this region are not unhurt by the raging currency storm. Many operators have huge loans in US dollars to pay off. At the same time phone users have become more economical and cut down on talk time and other network usage.
"We have a long-term commitment to our clients. We will talk to those who have problems and we will help them to the best of our ability to get over this hard period," said Dr. Ramqvist who met with all Ericsson's major clients in Thailand during the visit. He also saw PM Chuan Leekpai at Government House.
There has been talk of cash-strapped Thai cellular operator TAC letting their supplier, Motorola from the US, help out by direct investments in TAC.
Would Ericsson consider such investments in a Thai operator, if asked?
"No. We are a supplier. Operators are customers and we will never compete with our customers. This is a firm Ericsson policy," emphasized Mr. Jan Kemvall, President of Ericsson Thailand Ltd.
"However we do of course have co- operation projects with Thai companies."
Despite the Asian unrest the Ericsson group posted its strongest result ever for 1997 with a 70 percent profit before tax increase to SEK 17,218 Million. Sales amounted to SEK 179,770 Million, up 30 percent.
The Thai company managed to increase sales up 53.5 percent to THB 10,068 Million. At the same time income before taxes sunk by 3 percent to THB 200 Million, mostly due to unfavourable currency fluctuations and the slowdown of the Thai economy.
"We expect flat growth in Asia this year. But that at a very high level," commented Mr. Bengt Forssberg, Chairman of Ericsson Thailand and Senior Vice President, Ericsson.
During his visit in Thailand, Dr. Ramqvist also presented some donations. Ericsson announced a THB 9 Million donation for Thai postgraduates to further their Master or Ph.D degrees. At another event, a 1,200 line MDI 10 private branch exchange was donated to the Dhammkaya Temple.
