Struer, a young town with 11.000 inhabitants, is the setting for one of Ericsson’s most important business ventures right now. This is where the company’s investment in broadband equipment for all the world’s telecom companies is taking place in an advanced development centre based on Danish technology.
’Today, Ericsson has sold broadband equipment to 60 telecom companies worldwide, including large corporations like TeliaSonera and China Telecom. And this technology has been developed here’, says Håkon Olsson, local Ericsson manager, with pride.
In short, this is where Ericsson during the crisis of 2001, where almost 60,000 employees were fired, realised that broadband Internet would not only boom, but that the tight economy would mean that telecom companies worldwide would demand cheaper broadband equipment. Ericsson was right on both points and this is why the investment in Struer is a success.
Struer was given a complex task by the Swedish telecom giant:
‘Find a way for telecom companies to build up broadband net, which can handle a massive increase in band width, but which at the same time allows them to save money.
The task was challenging for the people in Struer, but it was also a way out of the crisis for the department. Because, while Ericsson was firing employees all over the world, Ericsson in Sweden invested DKK 85 mio. in the project and the Danish section went to work.
For over a year the Ericsson factory in Struer was sealed off from the rest of the world. Without involving anyone in anything – let alone letting telecom companies test their own products – the Struer department of Ericsson was developing broadband equipment for the telecom companies based on the Ethernet technology, which has proven to cut costs for telecom companies to approximately 25%.
First Danish order
Last week, Ericsson announced its first Danish order on delivery of broadband equipment developed in Denmark based on Ethernet, where Telia in Denmark has bought in. And the success is expected to go global.
Whereas telecom companies for years have had their base in the so-called ATM technology, which is stable, but expensive, many are now changing to the more widespread Ethernet technology, which is widely used in the classic PC world. Therefore, the Danish development department has become one of Ericsson’s most important focus areas on a par with the company’s billion industry as the world’s largest producer of mobile networks.
Today the success of the development department is a reality and proves that Danish technology can still match the best.
The full news story was reported in Berlingske Tidende