Trust enables change. Change that enables more sustainable societies. Change that helps bridge the digital divide. By contributing to social, environmental and economic development and holding ourselves to high ethical standards in everything we do, we gain the trust of our stakeholders. As a responsible corporate citizen, Ericsson is better positioned to drive change. This commitment starts from the top and is shared by our employees, who feel pride in working for a company in which the core business contributes to a better world.

Ericsson's commitment to corporate responsibility is closely linked to our vision to be the prime driver in an all-communicating world. In fact, our industry offers countless opportunities to create more sustainable societies, as this report demonstrates.

With our strength in both fixed and mobile broadband solutions, we are well positioned to deliver enhanced communication that improves quality of life and increases productivity and efficiency in society. In the future, technology will be ingrained in our daily lives in ways that we can't even imagine today; for instance, through e-conferencing, e-health, e-learning and e-government. These innovations, made possible by Ericsson products and services, can substitute physical transportation, reduce carbon emissions and provide a platform for smoother, more accessible national infrastructures.

The explosive pace of growth in mobile communications is paving the way for technology to bridge the digital divide. It is the mobile phone rather than the computer that is triggering this development. Today there are more than 2.7 billion mobile subscriptions in the world. We expect that number to surpass three billion by the end of 2007, fueled by high-growth markets. As most of these markets have limited fixed-line networks, mobile networks will be the way that many new subscribers gain access to advanced communications. We see this as both a business opportunity and as a way to enable people in emerging markets to gain greater social and economic benefits.

The use of Information and Communication Technology (ICT) is critical for society's ability to handle difficult global challenges, such as climate change. In 2006, we saw the world waking up to climate change as never before, creating a sense of urgency to act. And we have a part to play. We create value for our customers by offering solutions that help them meet their own strategies for sustainable growth - growth that conserves energy. Energy consumption represents one of the most significant costs of operating a telecommunications network. Ericsson has been an industry leader in Life-Cycle Assessment (LCA) for more than a decade, weaving a systems approach through the design of products and services, the use phase and ultimately disposal. This is just one tool that we use to help our customers to better understand their impacts - environmental as well as cost - and to optimize their energy efficiency. As part of our drive to be energy lean, we are also investing in alternative sources of energy such as biofuels, solar and windpower.

Trust is synonymous with good governance. Corporate responsibility is fully integrated into the way Ericsson does business. This is not just a matter of having the right policies in place but also about having an ethical approach that is embedded in how our employees do their job, how we work with suppliers, and how we engage with our many different partners to create a more sustainable society. Leadership is about vision. It is also about responsibility. As a leader in communications, Ericsson is driving change that helps create opportunities for billions of people around the world.