It is a complex answer. Let me try to explain. 5g is more than just another network. It is an even nation an evolution of 4g into a network that is much more responsive, much faster, built for machine type communication. In ericsson, we talk about a Network Society. And the Network Society is a society where everything that can benefit from having a connection will actually have one. We put a Vision Forward in 2009 in barcelona in the trade show going on there of the 50 billion connected devices in 2020, which has caught on very well in the world. And that, i think, open to many peoples minds that the mobile industry is not limited to the smart phones and devices we carry around personally. It also is a Great Technology to connect so many other things and to be able to build a Better Society based on those kinds of technologies. Host on ericssons homepage there was a post about a connected world is just the beginning. What does that mean . Ewaldsson if i should interpret it. I think the world of connections is something that we have been talking about for years. But the beginning means that we are building a platform. We are building a foundation for other industries to innovate on top of. Thats why the networks we are building now are becoming so much more in innovation platform for the whole society. I sometimes say that if you look at regulation in different countries, for instance, you come from a situation where voice was regulated by and competition was regulated on voice. Now we are moving into a regulator role being more of an enabler of innovation. Because you want to make sure that those networks are being built with that kind of technology that make other industries able to use them. And then they can grow their opportunity, transform their products. At c. E. S. , we can see so many connected cars. Ive just walked in the preshow. You can see cars everywhere. Most likely they are all being connected to or you can see a car becoming a softer product. And as the car becomes a software product, it has to be connected. So many things will be able to do with that software in the car. Its relying on that conductivity. Therefore, networks need to be reliable, very safe, and they also need to be able to compete storage and different applications. In that sense, that is an example of what i mean of innovation outside, on top of networks. Host what we have been calling the internet of things. Ewaldsson the internet of things is one of the words. I think that is really what is t is about. We will see the internet changed dramatically with this evolution. It was not built to do this. But we will see an internet where computing, storage security imaging those kinds of functions will move to the edge of the network, much closer to where the generation of data is being done and where the data is being consumed. In other words, we do not from a consumption points or the entire network up to the server that is standing in another country and wait for a result. We are going to see a network that is going to be transformed to do that computing, storage at the edge of the network. We need to make that is an industry simple enough for others to be using it. Host Ulf Ewaldsson. We have been talking about the cloud now for several years. Has it been a Successful Transition . Ewaldsson the cloud, technology is such has now many, many years on its terms and how long it has been in the market. The idea for the i. T. Industry, it has been a tremendous transformation. It removes a lot of the hardware and software from enterprises out into central locations. At the same time, that has led to a Big Technology change. So technologies like virtualization. It is a technology that is made these data center scary efficient. And that kind of technology we can now incorporate internetworks. So we will use Cloud Technology, and we are starting to use Cloud Technology to transform big networks into being much more efficient than in the past. I think just look at stm technologies. One of those very, very disruptive factors to networks that really will transform the way we introduce services. The way you test things. The way you roll out new software a very big change for many of our customers and for operators. Host is 5g being used anywhere yet in the world . Ewaldsson no, no. They were about five years ahead if you look at the way that these industry operates. If you go back to the 1g, 2 g. When we created 1g, we did not know it was 1g. After that, it takes is the number of years to be able to collaborate industry, to work at the innovation, to mdefine what the vision is for the next generation. We have an innovation regime that is creating a corporation, if cooperation between many competitors to be able to put in innovation proposals and we are basing that from an ipo origin which is helping us to cross between the Different Companies and to not build it on a nonproprietary platform. I think that is one of the reasons why the dsm has had this is enormous uptake as well as 3g and 4g where we have reached more than 7 billion subscriptions in the world. Host reporter as group chief Technology Officer for ericsson, are you thinking about 6g already . Ewaldsson one should say there will not be the next generation. The anticipation level we have put forward for 5g will last is a very long time. The ambition is that this will lead and we will be able to evolve it for a long time. The other thing that is new is that we are not going to make it a revolution. We are not going to build a new network on top of the older network. We are actually going to make it an evolution of the existing networks. You that lte technology, it will service very well in the lower frequencies and for quite a while. We will be able to evolve that forward and forward into reaching something that we will eventually be approved as 5g. I do not know if you know but the i. T. We see of this approval that the International Telecommunication union, part of the united nations, are the ones that set the final stamp and say that this is now 5g. So i think we will see an evolution into getting that stamp on the paper. Host from your perspective at ericsson, what are some of the trends that youre watching for and what are some of the changes that you see coming in five to enten years . Ewaldsson i think the most important trend is really the mobility trend overall. I think we are amazed at ericsson being the leader in the mobile space of how Many Companies that have never thought mobility would be relevant to their products are now saying this is at the core of their strategy. I think that is one very important thing. We are measuring and following that clearly. We are publishing reports. One called mobility report where we publish about mobility. The level it reaches the numbers. How many smart phones were sold in the last quarter and so forth. Those are very that is a very important trend we follow. Apart from that, we are following consumer trends. Being here in las vegas at the Consumer Electronics show, we can see that many of the gadgets that are being launched our early prototypes of things that become normal. Wearables was very big here couple years ago. As an initial stage, i think many people all over the united states, all over the world are using wearables. It is nothing strange at all. It is connected through their mobile phone into the network, providing all kinds of data. Host is that an advantage or disadvantage to be in sweden . Ewaldsson i am very seldom in sweden, so how will i know . We are in so many countries all over the world. I spend a lot of time in the u. S. I think we are excited at ericsson to see also the Important Role that the u. S. Market is playing for us. First of all, we have done very well over here. We have great traction with the operators over here. We have seen leadership and many of the operators who are really using our technologies to the fullest. And where also very excited that the u. S. Has, the home of many leading Internet Companies. We can see that collaboration between the Internet Companies the over the top play, and the operators and the computer industry as well as the media which is a very u. S. Focused all over the world being exported. And that Technology Mix from a Technology Point of view is very important now as we are building into 5g. We are promoting and working hard to make sure that the u. S. Can take a leading position in the way o f guiding the rest of the world into 5g. Host but when it comes to telecommute acacia, aren c omes to telecommunication, arent a lot of the protocols becoming more and more international . Ewaldsson they absolutely are. But it is important to always have leading customers, to have leading visionaries if you will who are able to guide the industry and so forth. I think here many of the operators in the u. S. Have an Important Role to play. And i think that then other countries will pick up on that. Im glad to see that the ideas about the future, evolution of networks in terms of providing better services, more secure services, faster is happening here. Host Ulf Ewaldsson, one of the issues we have been hearing about recently is security privacy, hacking. Is this if this could get an International Response rather than a p ieceiece by piece response . Ewaldsson i think both. First of all, were really seeing change from just all the hacking being able to create Damage InternationalSecurity Issues between nations and whatever it might be. I think the security issue is of an utmost concern because it can limit the innovation that we are hoping to see in some industries here in las vegas. It can really damage innovation. It can really damage the opportunities of so many things that we wanted to happen if we cannot make it safe, if we cannot make it secure. Then on the privacy side, it is the same issue. I think many people say we have recent we have done research by Ericsson Consumer Lab where we have seen reports that more than 60 are concerned about privacy issues. Surveillance issues on the internet. At the same time, the usage just increases. I think its a dual edged sword. We need to be able to educate people make sure people understand their behaviors. But as well as operators and industries taking a responsible role in making sure that networks are safe, making sure that people should feel safe by using these applications on the networks and be able to gradually and here is back to your comment it is going to be a gradual approach. As it is in any security matters. Even on the safety of buildings. You increase the alarm levels. Host has the government of sweden taken a different approach to security and privacy issues than the u. S. Government . Ewaldsson i would not say that. I think there is a very strong global debate going on on Security Issues. And now we have World Economic forum in davos coming up where i think Internet Security and the ability to do business globally is going to be one very important topic. I think there is, this debate is very global today. I hope it can continue to be. So the response can be global because, after all, the Security Issues that are on the internet are not limited to nations in any way. They are certainly global. Host give us a snapshot of ericsson. Ewaldsson we are about 114,000 employees. And we spent 5 billion in r d every year. Heavy portion of our turnover. We turn over around 30 billion. We are the Global Leader in mobile networks, but also in services. We are also doing heavy investment in the media. We have become the Global Leader in systems, which is connected to our Strong Network position. We are a company who continues to thrive to make sure to provider customers with the very best solutions for the future. Host what is the importance of a show like this . Ewaldsson an increasing importance. We can see that what used to be an industry that was a bit more inward looking, where we were sitting down and standardizing the future of networks and thinking that we would innovate something great. Then people would use that. Use the Telecom Services of the past. Is moving to something where every industry in the world wants to use these networks to be able to provide their services to be able to benefit and build their new business on. As they do that they put the requirements of the futures of the networks. C. E. S. For us is becoming the most important show. It is here we can understand what the innovation power is on top of these networks we want to provide for the future. Host so many telik medications Companies Work with other companies soe many telecommunication Companies Work with other companies. It is not just ericsson doing its own thing. Ewaldsson on watermark over industry is the good Innovation Cooperation that there is. And then we compete as much as we possibly can on building this equipment. And the reason why we have to do that is that a certain level of standardization is needed to be able to reach the global sector. A phone that comes from australia or from china or from any other, korea works on any networked globally. I think that is very important. We will continue to defend that origin that makes that possible. Host Ulf Ewaldsson in your view, what could impede Telecommunications Advancement . Prevent or slow down telik medications advancement . Could it be government relic prevent or slow down Telecommunications Advancement . Ewaldsson one thing that could slow it down is that we get very big fragmentation. Fragmentation would be that we are not able to standardize things, if it becomes proprietary technology, and the opportunity of using this Global Mobility platform that we have built is fragmented and becomes challenged by a number of smaller, smaller scale things that does not build this big innovation platform. That will slow down the industry dramatically. It will make it less of a possibility a for the innovation power that many other companies here at c. E. S. Are expecting. Host are people doing that . Is it becoming more proprietary . Are companies cooperating . Ewaldsson im very cooperative. If i look at the way we are working with 5g, we can see that there is a big willingness to cooperate and work around putting together a global standard. As i said, it needs leadership. Particularly with markets that are very advanced, like the u. S. Markets. It is also to make sure that other nations adopted. We need frequencies that are global. Otherwise, that would fragment industries and people would not be able to roam with their devices. Host Ulf Ewaldsson, Senior Vice President , group chief Technology Officer of ericsson. This is the communicators on cspan. Ewaldsson thank you. Host we want to introduce you to kelly ahuja who is with cisco. What is your position and what do you do . Ahuja i am the Senior Vice President for Service Provider products and solutions. Host what does that mean . Ahuja within a company i own a strategy for the entire Service Provider business. I drive the portfolio in terms of where we invest, what Service Providers. Work with them globally and work with these partners, our Service Providers to help them achieve their business objectives. Host what is a Service Provider . Ahuja traditionally a Service Provider has been one that has a physical infrastructure. For example, a traditional telco or wireless operator, but more and more we are starting to see Cable Operators are also Service Providers, but even now, they are starting to emerge a new breed of providers, providers of services who dont necessarily have their own infrastructure. You could probably argue that netflix is a provider of service. Or others like that. Uber. They are all Offering Services but without owning if a structure. Host if some but he has comcast at their home or they have netflix, or a cell phone do they have a cisco product somewhere in that line . Ahuja i am happy to say absolutely. Anywhere you go in the world and the operator you speak to whether they are cable, mobile or a wireline carrier, typically they will have cisco somewhere in the network. This is because we have known to be the internet company, the company that built out the internet. We have been responsible for the last 30 years. We just celebrated our 30th anniversary as a company and we started by interconnecting networks that were desperate to talk to each other. And we made those bridges, calling the internet. Host so, is that becoming archaic, to have something connected via the internet . Ahuja if you think where the internet has been. It started with this thing that people needed to get to somewhere by dialup connections. We brought the internet from that thing somewhere to your home. We brought that internet from being your home to be with every device to carry around, the mobile internet. The next stage is about taking it from all these mobile devices to things, to information and connecting not just people but things with people, information with people. And processes with people and things so we can create a whole internet of everything. I think we are at the early stages of building that out. Host as the senior vp of cisco, talk about how you live the internet of everything. Ahuja that is an interest in question. If you take a look at we were walking over and jim was laughing because i am caring for devices with me. Two mobile phones, and ipad, and my handy dandy watch. Just to name a few. My laptop and other things are in the hotel. Now, how what i use the internet of everything . We have got demonstrations for our customers we are showing how a connected life could work for what could change from having their home being connected to a persons mobile device. Something that we are working with operators on called digital life. And not only that, connecting that two mobile devices as well. We can connect not just a family, but to your kids. Imagine this. If mom is at work. She knows that johnny who is on his way to on the school bus to home gets dropped off at home to she can unlock the door for or johnny can unlock the door. He can get inside the home. Mom can figure out she needs to pick up pizza on the way. And if johnny has brought a friend home, mom knows that johnny has brought a friend and she knows this person is allergic to maybe lactose intolerant, she can bring in a gltenuten free pizza. Get it home in the same time she is coming home. All of that can happen with people, information, things being connected to the internet. Host do you feel burdened by carrying for devices and wearing one on your wrist . Ahuja every time you turn around, there is a new device. Look at this show. Im excited to figure out what is new. Its going to be great for us to find more devices that connect to the internet. We are finding that in 2108018, there will be for billion Global Internet uses, which is 2. 5 more than what we have today. It is tremendous growth that still has to happen in all of these things that are getting connected is going to be massively beneficial to the industry and the economy. Host your boss the ceo of cisco, john chambers, said that mobility and i. T. Will be everywhere in all areas and that Companies Like allstate, walmart will start calling themselves technology companies. Ahuja absolutely. They are going to be calling themselves technology players, and they are going to embrace technology to either drive productivity inside their company or be able to drive growth for their companies. Every company is becoming a digital company. If you talk to anyone of the ceos, they are focused on becoming digital. And they see the internet of everything as a way for them to connect to their employees but also their customers. And drive loyalty, drive growth but also lower their costs to serve and improve productivity. Host we are in las vegas at the c. E. S. International show. What a cisco unveiling here . Ahuja we are clearly focused on driving exactly that with our customers, who are Service Providers. We are talking to them about internet of everything. Or ioe. Secondly, we are talking about what opportunities lie with them with iot. For example, video. Video services have evolved from being just inside the home to your settop boxes television to something you take everywhere. So video scape. Video being delivered from the clouds to any device, whether it is mobile, an ipad or tablet, or even a laptop. Not just your television. Cloud based solutions for video. How cloud can be leveraged to deliver new services but lower the cost structure. Also talking about mobility solutions. Business services. Host what are the things that cisco has been working on is the intercloud. What etc. Is that . What exactly is that . Ahuja 30 years ago, cisco emerged to be the company to build the internet which was taking multiple networks and interconnecting them together. We realize that the world of clouds is emerging very rapidly but is not going to be one cloud. It is going to be public and private clouds all coexisting. So it is going to be a hybrid environment. So we thought what was needed as a way to internet those to interconnect those clouds. We are doing connections of these clouds together with the intercloud. It is catching on really fast. We found that 50 partners today who have global for for it data centers. And now it is more like the escalation i can give you is it is almost like an airline, ill use the star lines analogy. With a bunch of airlines coming together and offering a Global Service to their end customers. Much like that answerl intercloud does that for our Service Provider and partners in enterprises coming together and be able to offer services. Host risley we talked to a guest about the future of the internet. Recently. One of the thing she said was that companies and corporations are overbuilding the internet. Theyre becoming over the top providers. For more security. Is that something that cisco is involved in . Ahuja absolutely. As you think about the internet of everything, where people, devices, information and process are all going to be requiring a connection privacy and security become absolutely essential tools. We have been making big moves and security. We acquired a Company Called sourcefire. If you look at the trends in terms of how we are doing in our security business, growing quite rapidly. So we are moving into this area because our customers are saying that is going to be pivotal for the success of the internet of everything. Host now if you have a government contract, do you, does the government Push Technology or does it follow . Ahuja that is an interesting thing, because in many areas the government innovates in technology. In many areas it follows. I think they do both. Host is the government a Major Contract for cisco . Ahuja a percentage of our business, yes, but not significant. Host in washington, one of the issues that is being talked about in congress is the issue of intellectual property. Is that something cisco would like to see action on . Ahuja we believe that to be able to innovate, to be successful as a company, you have to innovate. If you innovate, you have to build an intellectual Property Portfolio p we have been building our portfolio for many years, over 30 years. Filing patents every month and every day as our engineers innovate. So building that patent portfolio more to be able to protect our assets than anything. It has been a great effort for us and our engineers are doing a great job. Host couple final questions. Moving into an international platform, less u. S. Influence. Is that something cisco takes a position on . Ahuja im sure we have teams that look at it. I am not for money with it. Host it is not when you work on. Ok. Are we in a tech boom now . Ahuja well, i can tell you that the industry is changing quite rapidly. And theres multiple Technology Tech transitions that are affecting the entire industry. Everyone from enterprise or business to consumer to a Service Provider. And there are multiple technology and business transitions that are happening. Does that create a cboom . For some areas. For other areas, you may consider it to be a good disruptive force. So depending upon which le youn looks at, you can determine whether it is a boom. But i leave that to the industry pundits. Host are we in a disruption . Ahuja we are definitely in a disruptive time. This a perfect time for cisco because cisco thrives on market transitions. If you look at our history every time there has been a market transition, that is when bend and place to our favor. Because this is where enterprises and businesses that will be able to become Digital Companies and working with Service Providers be able to connect that, that is the area we have a strengthened. Thank you. The communicators is on location in las vegas for the annual International Consumer technology show. The largest trade show in the world. If youre interested in seeing more of our programming to meet conducted cspan. Org you can go to cspan. Org. Cspan, created 35 years ago and brought to you