CNME Editor Mark Forker managed to secure an exclusive interview with Patrick Johansson, President – Market Area Middle East, and Africa, at Ericsson, during Mobile World Congress in Barcelona last week, in an effort to learn more about how the Swedish ICT behemoth is helping operators monetize the network, their unique approach to the Open RAN space – and the opportunities emerging from the Middle East region.
Patrick Johansson is a hugely respected business leader in the telecommunications world, having spent almost 30 years at Ericsson.
In August 2024, he was appointed President of Ericsson Middle East, and has been tasked with the responsibility of driving their growth across a marketplace that is awash with opportunities, particularly in Saudi Arabia, where Johansson is now stationed.
CNME managed to catch-up with Johansson during one of the world’s biggest connectivity conferences in the form of Mobile World Congress in Barcelona.
COMING TO LIFE:
Johansson began the conversation by highlighting how technologies and products that we talked about for years are starting to come alive.
“At an event like MWC, and other major trade shows there are always technologies and solutions that you want to demonstrate and showcase to attendees. However, I think it’s very evident that some of the things that we have been talking about for years are actually happening now. The focus has shifted towards the question of how do you monetize the networks that have been built, and the importance of the ecosystem that has been built over time in terms of enabling that. At our booth we have the Meta glasses, and after so much hype over them, they actually exist now, these solutions and technologies that we have spent years talking about are real now, they are tangible, you can feel and touch them and that’s really exciting for the industry. You can’t go anywhere at MWC without hearing the word AI, and there have been some incredible examples of how AI is really coming alive, and how it is making organisations much more efficient,” said Johansson.
SHOW ME THE MONEY:
It has been well-documented for years that many global operators that made eye-watering investments in both 4G and 5G technology had failed to see a major ROI on those investments, and the need for 5G use-cases was pressing.
Now whilst there is still work to be done, there has been an upturn in the monetization of networks, which Johansson attributes to the fact that operators are now leveraging their networks as a ‘platform’.
“Look, we have fixed wireless access, which of course is one key aspect for us, but there are different advancements in networks. I do think the service providers that are now truly advanced with 5G standalone are driving huge transformation through what you can now do with slicing and mission critical activities and so on. They are capitalising on the opportunities that are out there, and they are being proactive and innovative, at the end of the day, it’s all about how the network can be a platform for new business development – and the operators that are doing that are having a lot of success,” said Johansson.
LET’S BE ‘OPEN’
For a number of years, there was a perception that Ericsson was opposed to the Open RAN movement, but as Johansson explained that was an unfair assertion made by others.
Ericsson has become a big player in the O2 interface, and has a key Open RAN collaboration with RedHat.
“A few years ago there was a perception that Ericsson was opposed to openness, but that wasn’t the case at all. It was misguided, and it was a view others had when assessing our approach. We were taking all of the information on board, and we were simply trying to make sense of it all. All the radios that you see out there are Open Ready, so instead of us competing in the traditional way, we pivoted towards a horizontal approach, and all the radios are compatible, and we want to connect other elements into this programmable network. From a stack point of view, you need RedHat, but it’s also important to note that you have to create flexibility for others to build, and then you compete on the elements, and I think that is shaping a much more innovative industry. At Ericsson, we don’t just talk about things we’d like to do, we go and do them. Actions speak louder than words – and I think sometimes we are accused of doing things slow, but once things happen it is through action,” said Johansson.
GOLDEN OPPORTUNITY:
It’s no secret that the Middle East region is become a prominent force in the global technology ecosystem, and that is evidenced by the sheer volume of investments being made in Saudi Arabia, Qatar and the UAE.
Johansson is based in Riyadh, so he is able to witness first-hand the appetite and demand for transformation.
He described the opportunities as hugely exciting, and described the Middle East as a ‘unique marketplace’.
“I am super excited by the opportunities emerging from the Middle East region. I believe that the Middle East region is at the forefront of technology. There is a technology-leading aspect at play across the Middle East, but if you peel back the layers the fundamental component that is driving the momentum across the Middle East region is transformation. The appetite and demand for transformation is off the scale. You can also see that many telecommunication operators are diversifying their businesses, and as I mentioned earlier, are using the network as a platform for building that. An example of this is e&, who very quickly turned into a delivery business in Dubai, in a very efficient way, and that was primarily down to the efficiency of the network and the reach they have with their subscriber base. There is also huge investments into the region, and I think the entrepreneurial spirit is very prevalent across the Gulf. It’s a very different market to other markets across the world in terms of the pace of change, and it is a very unique market. I think many other markets globally can learn a lot by looking at the transformation underway across the Middle East,” said Johansson.
YOU CAN TRUST US:
Ericsson has been in business for over 150 years, and rather inevitably like any business, has enjoyed good times and bad.
However, one element in their armour that has never really been chinked with their customers has been that of the trust in the quality of their networks and solutions, and Johansson believes that remains one of their key market differentiators.
“Ericsson has been able to sustain its success over such a long period of time due to our legacy and trust. Our founder took a decision very early on to go into the international market, and if you see telecoms anywhere, almost all of them at some stage have been with Ericsson. I think a key differentiator for us is security and trust. It’s in our DNA, there are other players in our market who may be considered more nimble than us, but businesses know that when Ericsson builds something, then it is robust and fully trusted across the industry. The importance of security and trusted networks is critical. The areas that you get into with businesses at times, is naturally sensitive, whether you are dealing directly with a government, or a private enterprise and you want to ensure that the information stays where it is supposed to be. In terms of trusted networks, not only can we talk about it, but we can actually deliver it,” said Johansson.
