A Lesson for the Future

As the telecommunications industry stabilizes, Ericsson's CEO reflects on
the value of SOM ties in good times and bad.

by Paula Felps


As the economy -- and the telecommunications industry -- rebound, one thing
is clear: key players have learned from the boom-to-bust period and will
turn it into a lesson for the future.

"The downturn was beyond what anyone envisioned," says Angel Ruiz,
president and CEO of Ericsson Inc. "We would not want our industry to go
through that again. If we can be successful in conveying [what we learned]
to the next generation, it becomes a fantastic lesson."

The recession of the past few years created an environment that Mr. Ruiz
acknowledges was a "tough place to do business," but the partnership
between industry and education has been beneficial to both Ericsson and
School of Management students at The University of Texas at Dallas.

"The kind of input and feedback we're able to give and get is invaluable,"
he says. "If both environments are secluded from one another, you can't
incorporate what is happening in the business world into your day-to-day
teachings.

"And, it becomes a great resource pool for us. We see a school full of
potential leaders."

Ericsson, a global leader in mobile and broadband Internet communication,
is headquartered in Stockholm, Sweden, but its North American headquarters
are in Plano. The prime location in the Telecom Corridor has bolstered the
company's relationship with The University of Texas at Dallas (UTD), a
union that began years ago with the university's engineering program and
has flourished with The School of Management. Like many locally based
industry leaders, Mr. Ruiz sits on development boards for UTD and sees the
partnership with the school as a key contributor to the company's
successful recovery as well as its long-term success.

"When you go through the kind of transition that [telecom] has been
through, the management piece of the puzzle becomes very important," Mr.
Ruiz notes. "Even though the industry and the market were going through a
downturn, Ericsson in North America has tripled its customers in the last
two-and-a-half years and has shown steady revenue gains. That has to be
attributed to management and to the dedication of our employees."

He says that he has a "cautiously optimistic" vision for the future of
telecommunications. Mr. Ruiz is a veteran of the industry, having spent 13
years guiding operations for Ericsson, building on the decade of
experience he already had when he joined the company.

"It's still a competitive industry," Mr. Ruiz says. "I think there still
has to be some [additional] consolidation, such as we've just seen with
Cingular and AT&T Wireless." In mid-February, Atlanta-based Cingular
Wireless announced plans to acquire Redmond, Washington-based AT&T
Wireless. It has been estimated that, if joined, the new company would
have 46 million customers and $32 billion in annual revenues.

"We have seen an upturn in telecommunications in the last three to six
months," Mr. Ruiz observes, "but there are still probably too many players
in the supplier and operator space."


Excited About the Possibilities

As the change in leadership takes place at UTD, Mr. Ruiz says he and his
colleagues are excited about the possibilities that await both the school
and the industry.

"[UTD President] Dr. [Franklyn] Jenifer and his staff have been very
receptive to our thoughts and our ideas," he says, noting he is hopeful
that the university's new administration will continue the initiatives,
begun with Dr. Jenifer, to expand even further the interaction between the
telecom industry and the university. (Dr. Jenifer, who turned 65 in March,
announced his retirement last October but will remain at UTD's helm until
the U.T. System Board of Regents appoints his successor.)

Meanwhile, says Mr. Ruiz, The School of Management continues to train "the
best possible candidates" for telecommunications jobs, "and that's
important for both the community and for companies like Ericsson who are
based here."