Wednesday, April 16, 2008

Ericsson predicts exciting future

President, Ericsson, Mr. Carl-Henric Svanberg has predicted an exciting future in the Information and Communication Technology (ICT) sector globally, especially for the telco’s shareholders.

According to him, the telecoms market faces an exciting future with many possibilities, but that the market was occasionally affected by external factors, such as shifts in technology and other changes.

A press statement made available to Champion Infotel endorsed by the Head, Corporate and Marketing Communications, Ericsson West Africa, Mr. Olabode Sowunmi Jnr, quoted Mr. Svanberg as saying “It was therefore important to maintain a long-term perspective.”

He also disclosed that Ericsson sales for 2007 rose by five per cent to SEK 188 billion and the profit for 2007 was almost SEK 31 billion.

This, he said, means that Ericsson accounted for one-quarter of the industry’s sales and for more than two-thirds of the profits.

Mr. Svanberg also outlined the three business units’ operations, namely business unit networks, global service business and multimedia.

He explained that Business Unit Networks is the largest area and accounts for two-thirds of sales.

“In 2007, it delivered its millionth base station. Each month, 300 billion traffic minutes pass through Ericsson’s base stations,” Svanberg said, emphasising that it was vital for customers to have a major supplier that is on the cutting edge and first out with new products.

On Ericsson’s Global Services business, he said, it has doubled turnover in the past five years and now represents a quarter of the group’s sales.

“All the new advanced technology means that network complexity is increasing; as a result, so is the need for systems integration, an area that is growing particularly quickly,” he said.

Ericsson, he said, manages more than 800 networks, with 1 billion subscribers - a third of the world’s subscribers. Ericsson also runs networks with 185 million subscribers, on a level with the world’s largest operators.

Equally on Multimedia, he said, that the unit formed over a year ago is an area for the future in which Ericsson is investing heavily on research and development. He pointed out that services such as YouTube are expected to increase the use of mobile networks significantly over the next few years, creating exciting business possibilities for Ericsson’s Multimedia business unit.

“This means operators will have to invest in both capacity and software from Business Unit Networks so that they can cope with the increased traffic,” he said.

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