Ekow Nelson, VP & Head of Global Customer Unit at Ericsson MEA, speaks with Teletimes International in an exclusive interview about Ericsson’s strategic approach towards key telecom trends
Khalid Athar: The first question related to the telecommunications industry in the Middle East and Africa over the next decade. What is your strategic perspective on its future?
Ekow Nelson: Certainly. The Middle East, particularly the Gulf countries, are key players in the development of their telecom industry. In our recent mobility report published in June, we forecast that 86% of subscribers in this market will transition to 5G by 2028. Currently, we have approximately 24 million subscribers in the Middle East and North Africa (MENA) region, with 15 million in the Gulf countries alone. We anticipate this number to grow to about 270 million subscribers. This would place the Middle East just behind North America and Northeast Asia, demonstrating significant progress. The UAE has laid a strong foundation for a top-tier telecom infrastructure, which we believe will foster innovation. This innovation-friendly environment, particularly through our global network platform strategy, which allows application developers to create solutions on top of the mobile network, facilitating further innovation by developers, enterprises, and device manufacturers. The Middle East is poised to be a hub for innovation, capitalizing on this robust foundation.
“The UAE has laid a strong foundation for a top-tier telecom infrastructure, which we believe will foster innovation.”
KA: How does Ericsson plan to distinguish itself in an increasingly competitive market in the region?
EN: In a mature industry like mobile telecommunications, differentiation based solely on commodities, products, or prices is challenging. However, Ericsson is pioneering a new approach through our global network platform, which we believe sets us apart. We see 5G as a catalyst for innovation, and to fuel this innovation, we aim to develop more applications. Just as 4G and smartphones paved the way for the app economy, 5G holds similar potential. Our global network platform is a federation of mobile networks that exposes global capabilities to application developers, whether it’s quality of service, location, or payment. This enables developers worldwide to create new applications on our network platform. We have initiated partnerships with operators worldwide, like Deutsche Telekom, to build this platform. We believe that 5G should offer more than what 4G did, and our approach is to expose the inherent capabilities for others to embed in their applications and devices. Ericsson’s differentiation lies in this unique strategy, which we don’t see replicated by others in the industry.
KA: What do you perceive as the most significant external challenges for Ericsson in this region, and how do you plan to address them?
EN: Ericsson has had a presence in this region for a long time dating back to the early 1980s. We’ve established a deep understanding of the local market. While global economic challenges affect everyone, our experience in navigating this market positions us well to address such challenges. It’s crucial to view challenges as opportunities, especially in this region. Initiatives like the Saudi 2030 vision and UAE 2031 vision showcase the ambition to transform and diversify economies. The digitalization journey presents significant opportunities for us to contribute to societal transformation and economic diversification. So, while global economic headwinds exist, I see the Middle East and Africa as a land of opportunity with visionary projects that encourage us all to work towards making it one of the best places to live in the world.
KA: How is Ericsson aligning its global vision with the unique opportunities and challenges in the Middle East and Africa?
EN: We have two key initiatives alongside our core products. Firstly, we aim to extend our mobile connectivity benefits to enterprises, much like we’ve done for consumers. This involves collaborating with our operator partners to provide advanced wireless technology to sectors like oil and gas, manufacturing, and healthcare. Secondly, we are building the global network platform to expose APIs that enable application developers to create globally available solutions. These initiatives are central to our strategy, and we are bringing them to the Middle East and Africa to support the ongoing digitalization journey.
KA: Given the diverse cultures and markets within the Middle East and Africa, how does Ericsson approach leadership to ensure cohesion and alignment across the region?
EN: Ericsson operates in over 180 countries, so we have substantial experience in dealing with diverse cultures. Our leadership team itself is a testament to this diversity, comprising individuals from various nationalities, including Africa, Sweden, the UK, and the Middle East. This diversity fosters a broad range of perspectives to address challenges effectively. Ensuring our leadership reflects the region and the people we work with is vital. Equally important is providing opportunities for local talent to rise through the ranks. We invest in programs like the graduate training program to develop local talent and ensure that leadership roles are accessible to them. Building local leadership is a core part of our strategy.
KA: Can you share an instance where your leadership philosophy was challenged, and how did you navigate the solution?
EN: While I can’t think of a specific instance where our leadership philosophy was directly challenged, our philosophy centers on investing in local talent. This philosophy can face ongoing challenges as it requires continuous investment in people to meet our standards. We must select the right individuals for the job and provide them with the necessary training. Failing to do so could lead to hiring expatriates for positions that local talent could fulfill. Therefore, the ongoing challenge lies in maintaining our commitment to growing local talent and ensuring they are prepared to assume leadership roles as we move forward.
KA: As a technological leader, what responsibility does Ericsson hold toward social development in the region?
EN: Ericsson takes its responsibility toward social development seriously. We focus on two key areas. Firstly, we emphasize the development of youth by investing in programs like the graduate training program. This investment in local talent contributes to skill development and job creation. Secondly, we prioritize sustainability and addressing climate change. We collaborate with our operator partners to reduce carbon dioxide emissions through innovative technologies and practices. We aim to reduce emissions and enable other industries like oil and gas, healthcare, retail, and banking to reduce their carbon footprint by leveraging our technology. This commitment aligns with our goal to leave a better world for future generations.
KA: Where do you envision Ericsson’s position in the Middle East and Africa’s technological ecosystem in five years?
EN: Having been a technology leader for around 140 years, we intend to maintain this position. We have recently been recognized as the 5G Innovator of the Year, and we will continue to invest in research and development to stay ahead. In five years, we expect to remain at the forefront of technology leadership.
“In terms of partnerships, we are increasingly collaborating with hyperscale cloud providers such as Google and Amazon. Cloud technology is becoming more prominent, and we see these partnerships as instrumental in bringing cost-effective solutions to our customers.”
KA: Are there any forward-thinking initiatives or partnerships that Ericsson is cultivating that you would like to highlight?
EN: We have made significant acquisitions recently, and we are working on maturing and leveraging them for growth. In terms of partnerships, we are increasingly collaborating with hyperscale cloud providers such as Google and Amazon. Cloud technology is becoming more prominent, and we see these partnerships as instrumental in bringing cost-effective solutions to our customers. Our ecosystem partnerships with device manufacturers also continue to be a focal point. These initiatives reflect our commitment to staying at the forefront of technology and innovation.
KA: What message or insight would you like to leave with aspiring leaders or entrepreneurs in the region?
EN: The Middle East and Africa represent a beacon of hope and opportunity. The transformation witnessed in this region over the past few decades is inspirational and sets an example for other developing countries. To emulate this success, focus on developing robust infrastructure, particularly in communications, as it underpins all aspects of modern life. Cultivate a forward-thinking mindset and embrace innovative technologies. Lastly, invest in local talent, as it is the key to sustainable growth and leadership for the future.
