Ericsson to enlarge plant in Brazil
Valor Econômico
Ericsson invested R$ 10 million (US$ 6.25 million) in the enlargement of its plant in São Jose dos Campos (SP) to meet the growth of the demand that in the last four years caused the production to increase ten times, from 4 thousand radio base stations (RBS) of mobile broadband to 40 thousand by the end of the year. In 2010, according to the President of the company, Sergio Quiroga, the Brazilian Unit produced 19 thousand RBSs. The plant is the only of Ericsson in the Americas and it also has no competition to manufacture such equipment in Brazil. With earnings of R$ 1.7 billion (US$ 1.1 billion), Brazil accounts for 3% to 5% of the global income of Ericsson, and the Executive estimates growth above 10% in 2011.
The unit of São José dos Campos exports half of its production to countries of Latin America and Africa. The Executive said there is room for greater growth in the businesses of the company in Brazil in the coming years, due to holding of events like the FIFA World Cup and the Olympics, besides projects of digital inclusion of the Government. "In 2020, Brazil will have a total of 2 billion broadband connections, voice and data, which represents ten connections for each person", he said. The President of Ericsson recalled the plant of São José dos Campos is prepared for new expansions and to cater to projects of the government, such as the projects of rural telephony and broadband for remote areas of the country, mainly in the Amazon: "We need to provide frequencies in the range from 450 megahertz to attract investors and new operators willing to invest in those regions".
To take broadband to remote areas of the country that do not have optical fiber cables, the Government studies as an alternative the use of geostationary telecommunications satellites. According to Carlos Nobre, Secretary of Policies and Programs of Research and Development of the Ministry of Science and Technology, the project is under feasibility studies and the forecast is that it be concluded in four years. The project of digital inclusion of the Federal Government, according to the Minister of Communications, Paulo Bernardo, attending the event, aims to reach 69 million users and accelerate the spread of low-cost internet among low-income families. The company is preparing to launch the production of 4G radio units in six to eight months.