Ericsson (NASDAQ: ERIC) today initiated union negotiations to close down its telecom cables operation within business unit Networks.
As the market for copper cable has declined and the market for fiber cable has grown over the last years, the production has shifted towards Asia, where the majority of the business volumes for fiber cable are found. In Europe there is more production than demand for both copper and fiber cables.
Tomas Qvist, head of Special Products in business unit Networks, and head of Human Resources for Ericsson in Sweden, says: "It is a tough message to bring to our colleagues in the telecom cable operations in Hudiksvall and Stockholm today. The decision is based on the fact that Ericsson's production of telecom cables is small from a global perspective, and that we also have a small market share. There is overproduction on the cable market in Europe. Unfortunately, our production has not been operating at full capacity for a long time and has struggled with profitability."
The announcement primarily impacts the operations in Hudiksvall and Stockholm. A notice of reduction of 318 positions in Hudiksvall is given, and a dialog with the unions in Stockholm for how to close down 36 positions in Stockholm is initiated.
Net sales for telecom cables operations in 2012 amounted to approximately SEK 1 billion.
The current best estimate is that today's announcement will generate restructuring charges of about SEK 0.5 billion. With the current time plan, approximately half will impact of business unit Networks' operating income in the second quarter 2013. The rest will impact Networks' operating income in the third quarter 2013.
Ericsson invites members of the press today, May 21, at 4 pm CET to Kabelvägen 1 in Hudiksvall. Tomas Qvist will be available to answer questions.
Today's information does not impact the process for the divestment of the power cables operations to NKT Cables announced on May 3, 2013.
NOTES TO EDITORS
Download high-resolution photos and broadcast-quality video at www.ericsson.com/press
Ericsson is a world-leading provider of communications technology and services. We are enabling the Networked Society with efficient real-time solutions that allow us all to study, work and live our lives more freely, in sustainable societies around the world.
Our offering comprises services, software and infrastructure within Information and Communications Technology for telecom operators and other industries. Today 40 percent of the world's mobile traffic goes through Ericsson networks and we support customers' networks servicing more than 2.5 billion subscriptions.
We are more than 110,000 people working with customers in more than 180 countries. Founded in 1876, Ericsson is headquartered in Stockholm, Sweden. In 2012 the company's net sales were SEK 227.8 billion (USD 33.8 billion). Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ, New York stock exchanges.
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A smooth and seamless integration of Wi-Fi access is an increasingly important part of any mobile broadband service. Most smartphone users have experienced the frustration of being automatically connected to a Wi-Fi network only to face a noticeably slower connection speed.
To ensure users always get the best connection, Ericsson (NASDAQ: ERIC) today announces its 3GPP compliant Wi-Fi network access, control and management solutions. These enable mobile operators to easily incorporate Wi-Fi in their heterogeneous network strategy, while delivering a consistently high-performance user experience, even in high traffic areas. Incorporating Wi-Fi is a key focus of tier-one mobile operators.
Daryl Schoolar, Principal Analyst, Network Infrastructure at Ovum, said: "Ericsson has clearly differentiated its carrier Wi-Fi solution through tighter integration with mobile operator's 3GPP access, control and network management. This approach should yield a better end-user experience by preventing some of Wi-Fi's well-known bad habits from being imposed upon users. At the same time, operators should welcome the tight integration of Wi-Fi and mobile, as exemplified by Ericsson's solution, thanks to the benefits derived from improving network resource optimization and ease in implementing and delivering Wi-Fi service offerings."
Key to the user experience is an Ericsson industry-first feature that automatically selects the best connection: real-time traffic steering. Ericsson's real-time traffic steering is a software upgrade that constantly assesses key performance indicators in both the mobile 3GPP network and the Wi-Fi network before dynamically and seamlessly shifting the consumer's smartphone connection between networks. This ensures the best user experience and optimizes network resources. Real-time traffic steering is a network-driven feature requiring no user intervention or additional device software. Ericsson also now supports access selection, a self-optimizing network (SON) feature enabling load-balancing between Wi-Fi and 3GPP networks to optimize the average user experience.
Thomas Noren, Vice President and Head of Product Area Radio, Ericsson, says: "Heterogeneous network strategies among leading mobile operators are focused on delivering a great mobile broadband experience to their customers, wherever they are. By coordinating licensed small cells with the macro cell, as we announced earlier this year, and intelligently integrating Wi-Fi and 3GPP throughout the network, we're providing operators with the most effective way to deliver consistently high performance consumer connections."
With indoor areas increasingly prone to mobile network congestion, Ericsson has also developed the first 802.11ac access point designed to enable mobile operators to deliver supplemental small cell or standalone Wi-Fi coverage indoors. The 802.11ac standard is common on tablets and increasingly prevalent on smartphones.
Two new cloud-controller options, both featuring 3GPP-standard interfaces to the mobile core, make it easier and more cost-efficient for operators to add Wi-Fi to their existing mobile services. The Ericsson Evo Controller now features a Wi-Fi controller blade, the WIC 8030. A new standalone controller, the WIC 8100, supports up to 10,000 access points and 500,000 concurrent subscribers, allowing operators to consolidate multiple Wi-Fi networks from a centralized location in a cost-efficient way.
Ericsson is also introducing integrated management of Wi-Fi and 3GPP networks on a common platform, simplifying operations and reducing network costs.
These new Wi-Fi 3GPP integration products and features provide complementary and incremental benefits to emerging industry standard features that Ericsson supports, including: Access Network Discovery and Selection Function (ANDSF), IP session mobility (also referred to as IP address preservation) and Wi-Fi CERTIFIED Passpoint(TM) (based on the Wi-Fi Alliance Hotspot 2.0 Specification). Ericsson also offers Wi-Fi 3GPP integration solutions to optimize the user experience for operators targeting residential Wi-Fi coverage. At MWC 2013, Ericsson announced a new Wi-Fi Gateway application on the Smart Services Router (SSR) which also supports integration of Wi-Fi networks with mobile broadband infrastructure.
NOTES TO EDITORS
Ericsson heterogeneous network advantages confirmed in live networks:
http://www.ericsson.com/news/1680632?idx=60
New applications out on Ericsson Smart Services Routers
http://www.ericsson.com/news/1679116
White paper: Wi-Fi in Heterogeneous Networks
Ericsson Review: Achieving carrier-grade Wi-Fi in the 3GPP world
Download high-resolution photos and broadcast-quality video at www.ericsson.com/press
Ericsson is a world-leading provider of communications technology and services. We are enabling the Networked Society with efficient real-time solutions that allow us all to study, work and live our lives more freely, in sustainable societies around the world.
Our offering comprises services, software and infrastructure within Information and Communications Technology for telecom operators and other industries. Today 40 percent of the world's mobile traffic goes through Ericsson networks and we support customers' networks servicing more than 2.5 billion subscriptions.
We are more than 110,000 people working with customers in more than 180 countries. Founded in 1876, Ericsson is headquartered in Stockholm, Sweden. In 2012 the company's net sales were SEK 227.8 billion (USD 33.8 billion). Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ, New York stock exchanges.
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In order to raise awareness of the plight of refugees, and find new ways to reconnect refugee families in some of the most remote areas in the world, Ericsson (NASDAQ: ERIC) and Refugees United will run a series of developer competitions leading up to World Refugee Day, on 20 June 2013.
The number of forcibly displaced people around the world is measured now at 43 million. That is why it is urgent to reconnect families who have been separated due to conflict, war, and disaster. So far over 200,000 refugees have registered on the service, and the aim is to reach 1 million by the end of 2015.
The Global Hack for Good will galvanize the talent and skill of the developer community toward a solution for separated families. The unique series of "hackathons" - a weekend-long marathon of developing applications on mobile networks - will be held on three continents, on three separate weekends, but all are working toward the same goal of making re-connection easier.
For example, refugees may be reluctant to share data, or they face challenges such as illiteracy and lack of internet connectivity. Developers might find ways to make the platform more accessible from low-cost mobile phones, change interfaces or modify the built-in messaging application that allows refugees to exchanges messages without additional costs.
The first hackathon will be in Cairo, Egypt, on 31 May-1 June. Then, a new batch of developers will gather in San Francisco, USA, on 7-8 June, and the third part of the Global Hack for Good will be held in Nairobi, Kenya, on 15-16 June.
Christopher Mikkelsen, co-founder of Refugees United, says: "Everyone has the right to know where their family is. To separated refugee families, this for many years seemed impossible. Today, we're at a tipping point where technology can help them reconnect. Now it's up to us to act and help."
Elaine Weidman-Grunewald, Vice President of Sustainability and Corporate Responsibility, Ericsson, said: "We have a long-term commitment to the refugee cause, and have been working with Refugees United since 2010 to create a mobile platform for refugees to reconnect with family and loved ones. We now want to harness some of the new innovation and technology of the developer community with this Global Hack for Good, in order to scale and amplify the great work that is already underway.
"Increasingly we see developers wanting to apply their skills for a good cause - this is a true example of Technology for Good, and we hope to see the world's most talented developers create new ideas to serve more separated families," she said.
The jury, including experts from both Ericsson and Refugees United, will select two finalists at each location. On World Refugee Day, June 20, 2013, a winner from each location will be announced. The three winners receive a trip to Kenya and will be invited to test their prototypes in the Kakuma refugee camp in late 2013.
NOTES TO EDITORS
Invitations and location information: Global Hack for Good
Refugees United - Bahati's story (video)
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Ericsson is a world-leading provider of communications technology and services. We are enabling the Networked Society with efficient real-time solutions that allow us all to study, work and live our lives more freely, in sustainable societies around the world.
Our offering comprises services, software and infrastructure within Information and Communications Technology for telecom operators and other industries. Today 40 percent of the world's mobile traffic goes through Ericsson networks and we support customers' networks servicing more than 2.5 billion subscriptions.
We are more than 110,000 people working with customers in more than 180 countries. Founded in 1876, Ericsson is headquartered in Stockholm, Sweden. In 2012 the company's net sales were SEK 227.8 billion (USD 33.8 billion). Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ, New York stock exchanges.
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In further confirmation of its market leadership, Ericsson (NASDAQ: ERIC) was named the worldwide leader in telecom operations management by leading industry analyst firm Gartner (Market Share Analysis: Telecom Operations Management - BSS, OSS and SDP, Worldwide, 2011-2012, April 29, 2013).
According to the report, which profiles the top 5 telecom operations management market share vendors, Ericsson ranked first worldwide for OSS (Operations Support Systems), BSS (Business Support Systems) and Next-Generation Service Delivery and Provisioning solutions and services.
Per Borgklint, Head of Ericsson's Business Unit Support Solutions, says: "Over the past two years, Ericsson has made strategic acquisitions and investments to position the company as a market leader in telecom operations management. Today, we are very proud Ericsson has been named the worldwide leader in Gartner's telecom operations management systems report and believe this was a direct result of our strategy and efforts."
Borgklint adds, "Looking ahead, we anticipate that Ericsson's forefront position in the IP, LTE (Long Term Evolution) and self-organizing network technology domains will drive additional demand for telecom operations management system solutions and services, leading to prime involvement in major communication service providers' transformation programs."
Also notable, last year Ericsson was named a Leader in the Magic Quadrant in Operations Support Systems* by Gartner.
NOTES TO EDITORS
To learn more about the Ericsson's Operations and Business Support Systems, visit: http://www.ericsson.com/oss-bss/
Download high-resolution photos and broadcast-quality video at www.ericsson.com/press
*Gartner, Magic Quadrant for Operations Support Systems, Martina Kurth, October 23, 2012. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
Ericsson is a world-leading provider of communications technology and services. We are enabling the Networked Society with efficient real-time solutions that allow us all to study, work and live our lives more freely, in sustainable societies around the world.
Our offering comprises services, software and infrastructure within Information and Communications Technology for telecom operators and other industries. Today 40 percent of the world's mobile traffic goes through Ericsson networks and we support customers' networks servicing more than 2.5 billion subscriptions.
We are more than 110,000 people working with customers in more than 180 countries. Founded in 1876, Ericsson is headquartered in Stockholm, Sweden. In 2012 the company's net sales were SEK 227.8 billion (USD 33.8 billion). Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ, New York stock exchanges.
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The transaction is subject to relevant regulatory approvals.
NKT Cables is one of the largest power cable manufacturers in Europe. Ericsson (NASDAQ: ERIC) believes that the power cable operation that currently resides within business unit Networks has potential to realize greater leverage and scale within NKT Cables where it will be core business.
The net sales for the power cable operation in 2012 was approximately SEK 1.5 billion.
The current best estimate is that the transaction will generate a net loss of approximately SEK -100 million and will, with current time plan, negatively impact business unit Networks' operating income in the third quarter, 2013.
As a result of the agreement NKT Cables will take over a factory in Falun, Sweden.
NOTES TO EDITORS
Download high-resolution photos and broadcast-quality video at www.ericsson.com/press
Ericsson is a world-leading provider of communications technology and services. We are enabling the Networked Society with efficient real-time solutions that allow us all to study, work and live our lives more freely, in sustainable societies around the world.
Our offering comprises services, software and infrastructure within Information and Communications Technology for telecom operators and other industries. Today 40 percent of the world's mobile traffic goes through Ericsson networks and we support customers' networks servicing more than 2.5 billion subscriptions.
We are more than 110,000 people working with customers in more than 180 countries. Founded in 1876, Ericsson is headquartered in Stockholm, Sweden. In 2012 the company's net sales were SEK 227.8 billion (USD 33.8 billion). Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ, New York stock exchanges.
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Mobile satellite services operator Thuraya has selected Ericsson (NASDAQ: ERIC) as the sole vendor for its circuit-switched core network. Under the agreement, Ericsson will upgrade the Thuraya circuit-switched core network, implement an advanced billing mediation solution and provide support services for five years.
Ahmed Ali Al Shamsi, Chief Technology Officer at Thuraya, says: "As a global leader in mobile satellite services, we take pride in our network, which offers the best quality services in the industry. It is important that we can maintain a high level of network availability and can offer our customers the highest quality voice and data communication services. Ericsson's innovative solutions and our vision to provide customers with the best possible connectivity will help us achieve our long-term expansion goals. We have selected Ericsson as our partner to upgrade our circuit-switched core network and maintain our highly stable and reliable network."
Thuraya's satellite network has always provided consistent connectivity in remote locations. The core network upgrade - including a hardware upgrade of Thuraya's Mobile Switching Center (MSC), and hardware and software enhancements for the Home Location Register (HLR), Operation Support Systems (OSS) and Multi Mediation platform - will give subscribers greater access to telecommunication services wherever they are and provide Thuraya with additional capacity to handle future growth.
The integration and implementation of Ericsson's billing mediation solution will enable Thuraya to handle all customers, partners and services in a streamlined, convergent system, reducing network complexity. Ericsson support services ensure that the network will be running efficiently and smoothly for the next five years.
Rafiah Ibrahim, Executive Vice President, Region Middle East and Africa, Ericsson says: "The rapid expansion of Thuraya's satellite coverage demands a dynamic solution that will transform its existing infrastructure and maintain Thuraya's growing, market-leading footprint. Our services and solutions will equip Thuraya with the latest technology that will simplify operations and provide an unprecedented customer experience."
Ericsson's relationship with Thuraya began more than 15 years ago when Thuraya and Hughes International awarded the first network contract to Ericsson in 1997. Since then, Ericsson has worked closely with Thuraya, which is partly owned by Etisalat, while it made its mark as a leading mobile satellite service provider of voice, data, maritime, rural telephony, fleet management and other telecommunication solutions in remote areas, expanding into more than 140 countries around the world.
NOTES TO EDITORS
Download high-resolution photos and broadcast-quality video at www.ericsson.com/press
About Thuraya Telecommunications Company
Thuraya Telecommunications Company is an industry leading MSS operator and a global telecommunication provider offering innovative communications solutions to a variety of sectors including energy, broadcast media, maritime, military and humanitarian NGO.
Thuraya's superior network enables clear communications and uninterrupted coverage across two-thirds of the globe by satellite and across the whole planet through its unique GSM roaming capabilities. The company's diverse range of technologically superior and highly reliable mobile satellite handsets and broadband devices provide ease of use, value, quality and efficiency. Thuraya remains committed to serving humanity through delivering the essential tools for optimal connectivity, never leaving anyone out of reach. Visit www.thuraya.com
Ericsson is the world's leading provider of communications technology and services. We are enabling the Networked Society with efficient real-time solutions that allow us all to study, work and live our lives more freely, in sustainable societies around the world.
Our offering comprises services, software and infrastructure within Information and Communications Technology for telecom operators and other industries. Today more than 40 percent of the world's mobile traffic goes through Ericsson networks and we support customers' networks servicing more than 2.5 billion subscribers.
We operate in 180 countries and employ more than 100,000 people. Founded in 1876, Ericsson is headquartered in Stockholm, Sweden. In 2011 the company's net sales were SEK 226.9 billion (USD 35.0 billion). Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ, New York stock exchanges.
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First quarter highlights
| SEK b. | Q1 2013 | Q1 20122) | YoY Change | Q4 2012 | QoQ Change |
| Net sales | 52.0 | 51.0 | 2% | 66.9 | -22% |
| Of which Networks | 28.1 | 27.3 | 3% | 35.3 | -20% |
| Of which Global Services | 21.5 | 20.6 | 4% | 28.0 | -24% |
| Of which Support Solutions | 2.4 | 3.0 | -19% | 3.6 | -33% |
| Gross margin | 32.0% | 33.3% | - | 31.1% | - |
| Operating income excl JV | 2.1 | 10.5 | -80% | 4.8 | -55% |
| Operating margin excl JV | 4.1% | 20.6% | - | 7.1% | - |
| Of which Networks | 6% | 6% | - | 8% | - |
| Of which Global Services | 3% | 6% | - | 6% | - |
| Of which Support Solutions | -1% | -1% | - | 8% | - |
| Operating income incl JV | 2.1 | 9.1 | -77% | -3.8 | - |
| Operating margin incl JV | 4.0% | 17.8% | - | -5.7% | - |
| Net income | 1.2 | 8.8 | -86% | -6.3 | - |
| EPS diluted, SEK | 0.37 | 2.76 | -87% | -1.99 | - |
| EPS (Non-IFRS), SEK1) | 0.99 | 3.14 | -68% | -1.40 | - |
| Cash flow from operating activities | -3.0 | 0.7 | - | 15.7 | - |
| Net cash, end of period | 32.2 | 37.1 | -13% | 38.5 | -16% |
| 1) EPS, diluted, excl. amortizations, write-downs of acquired intangible assets, and restructuring 2) Q1 2012 includes a gain from the divestment of Sony Ericsson of SEK 7.7 b. | |||||
COMMENTS FROM HANS VESTBERG, PRESIDENT AND CEO
"Sales showed positive development in the quarter with a growth of 2% YoY, despite currency headwind. Sales for comparable units, adjusted for FX and hedging, grew 7%," said Hans Vestberg, President and CEO of Ericsson (NASDAQ:ERIC).
"The sales increase was primarily driven by Networks and rollout services, following high project activities primarily in Europe and North America. North America remained the strongest region and showed a growth of 23% despite the decline in CDMA. North East Asia had a challenging quarter with lower sales in South Korea, which remains one of the most advanced LTE markets but without parallel 3G deployments as in Q112, continued structural decline in GSM investments in China and FX effects in Japan.
Looking at the areas of portfolio momentum, we see continued good development in Managed Services with 21 new contracts signed during the quarter. Within the Mobile Broadband area, the vendor selection processes for 4G/LTE in Russia and China have been initiated. We also see continued momentum for our SSR routing platform with 12 new contracts in the quarter. Within OSS and BSS demand continued to be strong.
At the Mobile World Congress (MWC) in Barcelona the trends in focus verify our belief that the Networked Society is coming to life. The growth in data traffic and video in the networks drives demand for mobile broadband and OSS and BSS. Other key topics at the MWC were software defined networks, cloud and machine-to-machine communications that will all be part of shaping the industry for the coming years.
Profitability improved YoY, adjusted for the restructuring charges related to the reduction of operations in Sweden concluded in Q1 and last year's gain from the divestment of Sony Ericsson. The improvement is mainly due to higher sales in Networks and a continued reduction in operating expenses, offset by negative operating income in Network Rollout and negative FX effects.
The underlying business mix, with a higher share of coverage projects than capacity projects, continued as anticipated during the quarter. With present visibility of customer demand, and current global economic development, we continue to believe that the underlying business mix will start to gradually shift towards more capacity projects during the second half of 2013.
We continue to execute on our strategy. During the quarter we announced the way forward for our JV ST-Ericsson and in April 2013 we announced our intention to acquire Microsoft's Mediaroom to strengthen our media position.
While macroeconomic and political uncertainty continues in certain regions, the long-term fundamentals in the industry remain attractive and we are well positioned to continue to support our customers in a transforming ICT market," concludes Vestberg.
You find the complete report with tables in the attached PDF or by following this link:
www.ericsson.com/res/investors/docs/q-reports/2013/03month13-en.pdf or go to: www.ericsson.com/investors
NOTES TO EDITORS
Ericsson invites media, investors and analysts to a press conference at the Ericsson Studio, Grönlandsgången 4, Stockholm, at 09.00 (CET), April 24, 2013. An analysts, investors and media conference call will begin at 14.00 (CET).
Live webcast of the press conference and conference call as well as supporting slides will be available at www.ericsson.com/press and www.ericsson.com/investors
Video material will be published during the day on www.ericsson.com/broadcast_room
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Helena Norrman, Senior Vice President, Communications
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Investors
Åsa Konnbjer, Director, Investor Relations
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Stefan Jelvin, Director, Investor Relations
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Rikard Tunedal, Director, Investor Relations
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Media
Ola Rembe, Vice President, Head of External Communications
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Ericsson discloses the information provided herein pursuant to the Securities Markets Act. The information was submitted for publication at 07.30 CET, on April 24, 2013.
With reference to the announcements made on March 18th 2013, STMicroelectronics and Ericsson (NASDAQ:ERIC) will include commentary on ST-Ericsson's first quarter 2013 earnings results in their respective quarterly earnings communications. No specific earnings release will be issued by ST-Ericsson.
Ericsson will release the results for the first quarter 2013 on April 24, approximately 07.30 CET.
NOTES TO EDITORS
Press release from March 18: Ericsson and STMicroelectronics agree on strategic way forward for ST-Ericsson
Download high-resolution photos and broadcast-quality video at www.ericsson.com/press
Ericsson is a world-leading provider of communications technology and services. We are enabling the Networked Society with efficient real-time solutions that allow us all to study, work and live our lives more freely, in sustainable societies around the world.
Our offering comprises services, software and infrastructure within Information and Communications Technology for telecom operators and other industries. Today 40 percent of the world's mobile traffic goes through Ericsson networks and we support customers' networks servicing more than 2.5 billion subscriptions.
We are more than 110,000 people working with customers in more than 180 countries. Founded in 1876, Ericsson is headquartered in Stockholm, Sweden. In 2012 the company's net sales were SEK 227.8 billion (USD 33.8 billion). Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ, New York stock exchanges.
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As one of Orange's key technology suppliers, Ericsson (NASDAQ: ERIC) started deployment of 4G/LTE to upgrade the operator's networks in June 2012. Ericsson is installing its RBS 6000 multi-standard 2G/3G/4G radio base stations to enhance the user experience in terms of quality and capacity for Orange subscribers in Greater Paris, as well as in the south-west and north-east regions of France.
Franck Bouétard, Head of Ericsson in France, says: "The brisk pace of 4G deployments for Orange demonstrates Ericsson's ability to support the customer's key strategic objectives and provide the capacity gains needed to manage the increase in data traffic while improving quality of service. Ericsson teams are totally engaged in ensuring that Orange can achieve its 4G service rollout goals in 2013."
At the same time as conducting this LTE deployment program, Ericsson has been transforming existing 2G and 3G networks at more than 15,000 sites in south-west and north-east France and the Paris region since 2010. Ericsson has set up a dedicated organization to manage these transformation and deployment programs, and is working on them with a large number of partner companies.
Ericsson is the market leader in the mobile-equipment market, and had a 35 percent global market share in 2012. Ericsson's global market share for LTE is twice as big as its main competitor, measured in terms of shipments for the whole of 2012.
NOTES TO EDITORS
LTE media kit
www.ericsson.com/thecompany/press/mediakits/lte
Download high-resolution photos and broadcast-quality video at www.ericsson.com/press
Ericsson is a world-leading provider of communications technology and services. We are enabling the Networked Society with efficient real-time solutions that allow us all to study, work and live our lives more freely, in sustainable societies around the world.
Our offering comprises services, software and infrastructure within Information and Communications Technology for telecom operators and other industries. Today 40 percent of the world's mobile traffic goes through Ericsson networks and we support customers' networks servicing more than 2.5 billion subscriptions.
We are more than 110,000 people working with customers in more than 180 countries. Founded in 1876, Ericsson is headquartered in Stockholm, Sweden. In 2012 the company's net sales were SEK 227.8 billion (USD 33.8 billion). Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ, New York stock exchanges.
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E.ON Elnät Sverige AB (E.ON), part of one of the largest private energy companies in the world, has chosen Ericsson (NASDAQ: ERIC) to provide a hosted solution including consulting and systems integration services, harnessing big data and smart grid solutions for its customers.
Ericsson's solution will gather data from energy meters and provide collected data to E.ON's internal IT environment. Data will be exported daily rather than monthly, increasing data delivery by 3000%. Ericsson will also provide E.ON with related field services. The agreement stretches over the next five years, and includes more than 600,000 metering points in northern Stockholm, Malmö, Örebro, as well as Norrköping and Skåne.
The Ericsson Smart Metering solution, provided as a service, helps providers like E.ON become more efficient. The solution combines managed services, consulting and systems integration services and includes meter reading and control, meter management, meter monitoring, Service Layer Agreement (SLA) management, work force management, asset management, business process management, as well as field services and an operations center.
The solution is an important step towards real-time big data measurements, supplying E.ON's customers with accurate and up to date information on energy consumption. The evolution of smart grids is a priority in a number of countries, including EU and the US, and will eventually create a smart energy network that manages a huge amount of data in 24-hour intervals.
This will open new opportunities for efficient grid and consumption management as well as a seamless integration of locally produced renewable energy into the infrastructure.
Currently regulations within the European Union require utilities, or Distribution System Operators, to deploy smart metering in order to ensure the first steps towards Smart Grids and more efficient energy usage.
Per-Olof Lindholm, Management Director at E.ON Elnät Sverige, said: "In the long term, we believe empowered consumers will be more efficient in their energy usage and this will result in a more sustainable society."
Robert Puskaric, Ericsson's President of Region Northern Europe and Central Asia, which encompasses Scandinavia, said: "As the Networked Society is coming to life, and we are on our way to 50 billion connected devices, we believe that a large part of machine-to-machine communication will come from Smart Grids and Smart Metering. With our global scale and expertise, operational excellence and commitment to standards, we can help E.ON and its customers realize great benefits."
Ericsson is currently supplying clients in Estonia and Italy with solutions and services for smart grids, supplying valuable experience from managed services to field support. In the Nordic region, Sweden has spearheaded the development of smart metering and grids.
NOTES TO EDITORS
Elektrilevi release
Ericsson wins European smart metering award
Smart Metering Case Study: Acea
Ericsson to supply Managed Services to Acea for Automatic Meter Reading
Ericsson smart utilities product catalog
Download high-resolution photos and broadcast-quality video at www.ericsson.com/press
Ericsson is a world-leading provider of communications technology and services. We are enabling the Networked Society with efficient real-time solutions that allow us all to study, work and live our lives more freely, in sustainable societies around the world.
Our offering comprises services, software and infrastructure within Information and Communications Technology for telecom operators and other industries. Today 40 percent of the world's mobile traffic goes through Ericsson networks and we support customers' networks servicing more than 2.5 billion subscriptions.
We are more than 110,000 people working with customers in more than 180 countries. Founded in 1876, Ericsson is headquartered in Stockholm, Sweden. In 2012 the company's net sales were SEK 227.8 billion (USD 33.8 billion). Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ, New York stock exchanges.
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At the OpenStack Summit, taking place from April 15-18, the OpenStack Foundation's Board of Directors approved Ericsson's (NASDAQ: ERIC) application to become a Gold Member of the cloud-computing organization, based its firm commitment to the community - a commitment it has demonstrated with its specific product offerings and R&D investment.
At Ericsson, cloud technology is regarded as one of the key enablers of the Networked Society. Telecom networks are soon to benefit from cloud technology and all the related business, which boosts innovation, efficiency and time-to-market.
Ericsson believes in open standards, which help to create a mass market and scope for open innovation. With networks built on open cloud standards, the road is open towards new ways of building networks. Such standards also enable the speedy introduction of new services. These are the reasons for Ericsson's commitment to OpenStack, and for its selection of the technology for product offerings.
OpenStack is the standard chosen for the virtualization layer of the Ericsson Cloud System. This solution will open up telecom networks for flexible application development where networks and data centers will share the same execution environment.
Jonathan Bryce, Executive Director of the OpenStack Foundation, says: "With a large, established customer base of telco operators and strong product and R&D commitment to OpenStack, we welcome Ericsson to the OpenStack Foundation as a new Gold Member. Companies like Ericsson have the ability to help drive adoption of OpenStack and expand our footprint of large scale carriers globally."
Jan Färjh, Vice President, Head of Standardization and Industry for the Ericsson Group, says; "Operator networks need to evolve to enable distribution of cloud capabilities across the entire network and to allow introduction of new functions in the network, in a flexible way. The OpenStack-based Cloud Execution Environment is our open platform for operators, which brings us closer to fulfilling our vision of the Networked Society."
Ericsson is the world leader in mobile network infrastructure, with a 35 per cent global market share in 2012. With its long experience and know-how in the network-operator market segment, Ericsson will bring new opportunities to OpenStack and increase its addressable market.
NOTES TO EDITORS
Ericsson defines the cloud evolution - Ericsson Cloud System
http://www.ericsson.com/thecompany/press/releases/2013/02/1677723
Download high-resolution photos and broadcast-quality video at www.ericsson.com/press
Ericsson is a world-leading provider of communications technology and services. We are enabling the Networked Society with efficient real-time solutions that allow us all to study, work and live our lives more freely, in sustainable societies around the world.
Our offering comprises services, software and infrastructure within Information and Communications Technology for telecom operators and other industries. Today 40 percent of the world's mobile traffic goes through Ericsson networks and we support customers' networks servicing more than 2.5 billion subscriptions.
We are more than 110,000 people working with customers in more than 180 countries. Founded in 1876, Ericsson is headquartered in Stockholm, Sweden. In 2012 the company's net sales were SEK 227.8 billion (USD 33.8 billion). Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ, New York stock exchanges.
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Telefonaktiebolaget LM Ericsson's Annual General Meeting ("AGM") was held on April 9, 2013 in Stockholm.
Dividend
The proposed dividend of SEK 2.75 per share was approved by the AGM. The record day for dividend was set to Friday, April 12, 2013. Payment from Euroclear Sweden AB is expected to take place on Wednesday, April 17, 2013.
Adoption of the Profit and Loss Statements and the Balance Sheets
The AGM resolved to adopt the Profit and Loss Statement and the Balance Sheet for the Parent Company as well as the Consolidated Profit and Loss Statement and the Consolidated Balance Sheet for the Group for 2012. The members of the Board of Directors and the President were discharged from liability for the fiscal year 2012.
Board of Directors
In accordance with the proposal of the Nomination Committee, Leif Johansson was reelected Chairman of the Board of Directors. Roxanne S. Austin, Sir Peter L. Bonfield, Börje Ekholm, Alexander Izosimov, Ulf J. Johansson, Sverker Martin-Löf, Hans Vestberg and Jacob Wallenberg were re-elected to the Board and Nora Denzel, Kristin Skogen Lund and Pär Östberg were elected new members of the Board of Directors.
Board of Directors' Fees
The AGM resolved, in accordance with the Nomination Committee's proposal, on a yearly fee to the Chairman of the Board of SEK 3,850,000 (previously SEK 3,750,000), and fees to non-employed members of the Board, elected by the AGM, of SEK 900,000 each (previously SEK 875,000 each). Fees for Committee work to non-employed members of the Committees, elected by the AGM, were approved as follows (unchanged); SEK 350,000 to the Chairman of the Audit Committee and SEK 250,000 to each of the other members of the Audit Committee, SEK 200,000 to each of the Chairmen of the Finance and Remuneration Committee and SEK 175,000 to each of the other members of the Finance and Remuneration Committee.
The AGM approved the Nomination Committee's proposal to enable payment of part of the fees to the members of the Board for the Board assignment, in the form of synthetic shares.
Auditor
The AGM elected PricewaterhouseCoopers AB auditor for the period up until the end of the AGM 2014.
Guidelines for Remuneration to Group Management
In accordance with the Board of Directors' proposal, the AGM resolved to approve the Guidelines for remuneration to Group Management.
Long-Term Variable Remuneration Program (LTV)
In accordance with the Board of Directors' proposals, the AGM resolved as follows:
LTV 2013 and transfer of treasury stock
The Company has approximately 3.3 billion shares in issue. As per today, the Company holds approximately 82,193,250 million shares in treasury. The 32.2 million B shares allocated for LTV 2013 now correspond to approximately 1 percent of the total number of outstanding shares.
Transfer of treasury stock for previously resolved LTV programs
Proposal to amend the articles of association
The AGM resolved not to approve Carl Axel Bruno's proposal to add wording to the articles of association that at least one fourth of the Board members shall be men and at least one fourth of the Board members shall be women.
Proposal on voting rights
The AGM resolved not to approve Einar Hellbom's proposal to delegate to the Board of Directors to review and present to the next AGM how the shares are to be given equal voting rights.
Resolution on delegations to the Board of Directors
The AGM resolved not to approve the proposals from Thorwald Arvidsson to delegate to the Board to take action to create a shareholders' association in the company, to write to the Government of Sweden, requesting a commission to investigate changed legislation regarding abolishment of voting power differences, and to prepare a proposal regarding Board representation for small and midsize shareholders.
NOTES TO EDITORS
Download high-resolution photos and broadcast-quality video at www.ericsson.com/press
Ericsson is a world-leading provider of communications technology and services. We are enabling the Networked Society with efficient real-time solutions that allow us all to study, work and live our lives more freely, in sustainable societies around the world.
Our offering comprises services, software and infrastructure within Information and Communications Technology for telecom operators and other industries. Today 40 percent of the world's mobile traffic goes through Ericsson networks and we support customers' networks servicing more than 2.5 billion subscriptions.
We are more than 110,000 people working with customers in more than 180 countries. Founded in 1876, Ericsson is headquartered in Stockholm, Sweden. In 2012 the company's net sales were SEK 227.8 billion (USD 33.8 billion). Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ, New York stock exchanges.
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E-mail: investor.relations@ericsson.com
Ericsson (NASDAQ: ERIC) President and CEO Hans Vestberg presented an overview of the company's 2012 financial performance, key business developments and governance framework at the Annual General Meeting of Shareholders in Stockholm, Sweden.
Vestberg said: "Our sales in 2012 were basically flat compared to 2011. We reported sales of SEK 227.8 billion for the year, which is more than 600 million per day. We saw variation in growth for the different segments, but overall we are not satisfied with profitability."
For two of Ericsson's three business segments, Global Services and Support Solutions, business grew and Vestberg highlighted a new acquisition within IPTV.
"We help our customers create and deliver TV and video services with the best picture quality and end-user experience for interactive TV services. Our TV solutions now have over 2000 customers globally. Yesterday we announced the acquisition of Microsoft's IPTV solution, called Mediaroom, which will make Ericsson the leading provider of IPTV and multi-screen solutions with a market share of over 25%," he said.
From 2011 to 2012, sales grew 16% for Global Services. The segment, with 60,000 employees, represents more than half of Ericsson's global workforce. Key deals within Managed Services were highlighted during the shareholders' meeting and Vestberg said that customers are seeking more consulting and systems integration capabilities.
Within Networks, Ericsson remains market leader with 35% of mobile network equipment market and has twice the size of installed base as the number two and three-ranked players combined. While 2011 was stronger than 2012 for Networks, the segment represents 51% of the company's sales, and during the year, Ericsson won key deals for LTE delivery in North East Asia, Brazil, and North America.
Illustrating how the world is moving toward a Networked Society, Vestberg reviewed business deals from 2012 with industries such as shipping, utilities, and IT. "We stand strong in the transformation toward Information and Communications Technology, successfully reshaping our business while not losing sight of our unique competitive advantages," he said.
Wherever Ericsson works in the world, making a positive impact and conducting business responsibly is prioritized. Vestberg invited Elaine Weidman-Grunewald, head of Sustainability and Corporate Responsibility, onstage to outline the highlights of the newly-released 2012 Sustainability and Corporate Responsibility report.
Weidman-Grunewald said: "The theme of our report is Technology for Good, which summarizes our firm belief that mobile broadband is a transformational technology that can help address global sustainability challenges.
"Our 2012 performance can be briefly described in three key focus areas: The positive impact of mobile broadband, energy continued. and climate change, and conducting business responsibly," she
She covered specific activities that Ericsson is driving in the areas of human rights, and anti-corruption. She said: "We have updated our Code of Business Ethics to reflect the new UN Guiding Principles for Business and Human Rights as well as initiated a two-year business learning program on human rights and business.
"Our Zero tolerance for corruption sets a high bar for responsible business and during the year we joined the Partnering Against Corruption Initiative, PACI, established by members of the World Economic Forum, to counter bribery and provide a platform for corporate anti-corruption programs," Weidman-Grunewald concluded.
Vestberg wrapped up his presentation to shareholders by awarding three Ericsson employees the title "Inventor of the Year." Together, the three engineers are behind 292 patent applications, related to antenna and radio technology within HSPA and LTE.
Vestberg said: "We continuously aim to create a culture where our colleagues can be creative and contribute to Ericsson's ability to always be on the cutting edge, and create new technologies as well as invent new solutions.
"Bo Göransson, George Jöngren, and Henning Wiemann are some of the many fantastic examples of the unique competence, experience and professionalism that our 110,255 employees bring to work every day. Their work is extremely important to ensure Ericsson's leadership," Vestberg concluded.
NOTES TO EDITORS
Ericsson's 2012 Sustainability and Corporate Responsibility report
Press release on the sustainability report
Download high-resolution photos and broadcast-quality video at
www.ericsson.com/pressEricsson is a world-leading provider of communications technology and services. We are enabling the Networked Society with efficient real-time solutions that allow us all to study, work and live our lives more freely, in sustainable societies around the world.
Our offering comprises services, software and infrastructure within Information and Communications Technology for telecom operators and other industries. Today 40 percent of the world's mobile traffic goes through Ericsson networks and we support customers' networks servicing more than 2.5 billion subscriptions.
We are more than 110,000 people working with customers in more than 180 countries. Founded in 1876, Ericsson is headquartered in Stockholm, Sweden. In 2012 the company's net sales were SEK 227.8 billion (USD 33.8 billion). Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ, New York stock exchanges.
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In its Sustainability and Corporate Responsibility report 2012, Ericsson (NASDAQ: ERIC) summarizes the performance and achievements of its global sustainability initiatives, which use connectivity to make a positive socio-economic and environmental impact throughout the value chain.
Ericsson President and CEO Hans Vestberg says: "Many of the world's major challenges - such as urbanization, climate change, and poverty - could benefit from solutions offered by mobile broadband. Sustainability is a competitive differentiator and is high on our agenda, as well as that of our customers. Throughout the value chain and wherever we do business, we are creating value for ourselves and for our stakeholders by striving to be sustainable and responsible in all that we do."
Ericsson has long been engaged in the global conversation on sustainability and continues its leadership in several bodies to further dialogue on the role of Information and Communications Technology and sustainable development. Vestberg is personally involved in the Broadband Commission for Digital Development where he led the working group on climate change, and recently agreed to chair the Commission's task group on the post-2015 agenda and future Sustainable Development Goals. He is also a member of the Leadership Council of the UN Sustainable Development Solutions Network, a multi-stakeholder initiative launched in 2012 by the UN Secretary-General.
Elaine Weidman-Grunewald, head of Sustainability and Corporate Responsibility, says: "Our aim is to make mobile communications more affordable and accessible, as well as work to demonstrate the positive role of technology, where it can shape low-carbon economies, increase access to education, and support other humanitarian issues such as refugees, peace and conflict resolution, and disaster response."
In 2009, Ericsson set a five-year target to reduce its carbon footprint intensity by 40%. That goal has been reached within four years, largely thanks to systematic improvements across the portfolio and by improving product energy efficiency, and focusing on Ericsson's own internal operations.
Weidman-Grunewald continues: "Achieving the target a year ahead of schedule shows that we embrace the responsibility we hold as the industry leader, to continually raise the bar in our performance and offerings."
Corresponding improvements in 2012 include reduction in absolute emissions with regard to business travel, down 16%; product transport, down 12%.
The Ericsson Mobility Report estimates that by 2017, 85% of the world's population will have 3G coverage. To address the growing demand for cost-effective and energy-efficient build out of coverage, Ericsson offers solutions including: Psi coverage, which reduces power consumption by up to 40%; AIR, Antenna-Integrated Radio, a family of products that reduces energy consumption also by 40%; and Managed Rural Coverage, which bundles a managed service with a cost-efficient solar-powered 2G, 3G, or LTE mini-site solution, designed to connect people in areas without voice and data communication.
The report describes in detail Ericsson's Technology for Good projects and the milestones achieved in 2012. Connect To Learn, the global education initiative, has now been launched at 33 schools ranging from Brazil to Ghana. More than 185,000 refugees are now registered on the Refugees United mobile platform to help re-connect missing family. Ericsson is the technology partner to the PeaceEarth Foundation, which launched its Youth Peacemaker Network in Uganda and South Sudan.
The report covers Ericsson's strengthened focus on ways of conducting business responsibly. The Code of Business Ethics, summarizing the key group policies and directives governing relationships in the company and with stakeholders, was updated in 2012 to reflect the new UN Guiding Principles for Business and Human Rights, and Ericsson's commitment to respect human rights throughout its operations. To support implementation of the principles, the company launched a two-year business learning program on human rights. Ericsson has also joined the World Economic Forum Partnering Against Corruption Initiative (PACI).
Ericsson's first environmental report was published in 1993. Read the full 2012 report at www.ericsson.com/sustainability.
NOTES TO EDITORS
Weidman-Grunewald will join Vestberg onstage for the company's Annual General Meeting of Shareholders on April 9 in Kista, Sweden to launch the report.
Backgrounders on Technology For Good programs are available at www.ericsson.com/press
Vodafone Egypt Tests Psi-Coverage Solution from Ericsson
Photos are shareable at www.flickr.com/ericsson_images
Download high-resolution photos and broadcast-quality video at www.ericsson.com/press
Ericsson is a world-leading provider of communications technology and services. We are enabling the Networked Society with efficient real-time solutions that allow us all to study, work and live our lives more freely, in sustainable societies around the world.
Our offering comprises services, software and infrastructure within Information and Communications Technology for telecom operators and other industries. Today 40 percent of the world's mobile traffic goes through Ericsson networks and we support customers' networks servicing more than 2.5 billion subscriptions.
We are more than 110,000 people working with customers in more than 180 countries. Founded in 1876, Ericsson is headquartered in Stockholm, Sweden. In 2012 the company's net sales were SEK 227.8 billion (USD 33.8 billion). Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ, New York stock exchanges.
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technology for good, carbon footprint, communication for all, corporate responsibility, emerging markets, energy consumption, energy, Ericsson, Hans Vestberg, ICT, ICT Industry, innovation, low carbon, Millennium Villages, mobile broadband, mobile money, Networked Society, sustainability, wireless
Ericsson (NASDAQ:ERIC) has reached an agreement with Microsoft (NASDAQ:MSFT) to acquire its TV solution Mediaroom business. This will make Ericsson the leading provider of IPTV and multi-screen solutions with a market share of over 25%. Closing expected during the second half of 2013. Mediaroom is situated in Mountain View, California and employs more than 400 people worldwide.
Per Borgklint, Senior Vice President and Head of Business Unit Support Solutions at Ericsson said: "Ericsson's vision of the Networked Society foresees 50 billion devices to be connected via broadband, mobility and cloud. Future video distribution will have a similar impact on consumer behavior and consumption as mobile voice has had. This acquisition contributes to a leading position for Ericsson with more than 40 customers, serving over 11 million subscriber households. In addition, Ericsson will be powered with senior competence and some of the most talented people within the field of IPTV distribution."
The global IPTV market is estimated to reach 76 million subscribers in 2013 with revenues of 32 BUSD, growing to 105 million subscribers and 45 BUSD in 2015.
"Mediaroom is the leading platform for video distribution deployed with the world's largest IPTV operators. This strategic acquisition positions Ericsson as an industry leader thanks to the skills and experiences of the talented people of Mediaroom combined with Ericsson's end to end service capabilities" Borgklint concluded.
The total media solution portfolio of Ericsson in the TV and video space combined with a further increased focus on consumer needs will be the foundation for providing services to end users. The importance of video distribution capabilities for the customers and their consumers will be increasing as more and more LTE networks are deployed and filled with smartphone users.
"We are proud of the number one IPTV market position that we have achieved with Mediaroom. Ericsson's complementary portfolio of TV and networking services will help drive the future growth and development of Mediaroom," said Tom Gibbons, Corporate Vice President of Microsoft Corporation. "Ericsson is positioned to be a valuable strategic partner for operators and TV service providers around the world as the IPTV market evolves."
Microsoft Mediaroom is the TV technology behind many of the world's leading television service providers like AT&T U-verse®, Entertain of Deutsche Telekom, Telefonica, TELUS Optik TV(TM) and Swisscom. Mediaroom-powered TV services are offered on more than 22 million set top boxes deployed throughout the Americas, EMEA and APAC.
Ericsson already sees that the ever-changing behaviors of TV consumers are evolving faster than ever. Speed of innovation and intelligent solutions drive consumer propositions in TV anywhere. This development will continue to fuel the industry as convergence becomes reality. The development requires content owners, broadcasters, TV service providers and operators to re-think their propositions.
This move builds on Ericsson's triple Emmy award-winning leadership in the media industry, providing its customers with a truly unique experience in TV anywhere spanning the entire media value chain from camera to consumer.
The agreement is subject to customary regulatory approvals and other conditions. Mediaroom will be incorporated into Business Unit Support Solutions.
NOTES TO EDITORS
Photo and bio of Per Borgklint
Ericsson has pioneered innovation within the TV and video area for over 20 years, enabling the entire media value chain from content acquisition through to delivery of premium content and enhanced TV experiences to the consumer.
Our multimedia content is available at the broadcast room:www.ericsson.com/broadcast_room
Download high-resolution photos and broadcast-quality video at www.ericsson.com/press
Ericsson is a world-leading provider of communications technology and services. We are enabling the Networked Society with efficient real-time solutions that allow us all to study, work and live our lives more freely, in sustainable societies around the world.
Our offering comprises services, software and infrastructure within Information and Communications Technology for telecom operators and other industries.Today 40 percent of the world's mobile traffic goes through Ericsson networks and we support customers' networks servicing more than 2.5 billion subscriptions.
We are more than 110,000 people working with customers in more than 180 countries. Founded in 1876, Ericsson is headquartered in Stockholm, Sweden. In 2012 the company's net sales were SEK 227.8 billion (USD 33.8 billion). Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ, New York stock exchanges.
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Ericsson (NASDAQ:ERIC) has announced that it successfully tested Psi-Coverage, a first-of-its-kind energy-saving solution in the Vodafone Egypt Network. Psi-Coverage will provide end users with mobile broadband (3G) coverage, while enabling considerable energy and cost savings for the operator.
In the First Field Implementation (FFI), Psi-Coverage lowered energy consumption by 40 percent as a result of reducing the amount of radios used for a 3G base station (from 3 to 1) within the network. By rolling out the solution, Psi-Coverage brings high quality coverage to less densely populated areas. Eliminating excess power consumption creates a more energy efficient network.
Tony Dolton, Chief Technology Officer at Vodafone Egypt, said: "Psi-Coverage proved to be successful during testing, it reduced power consumption substantially and helped in saving OPEX/CAPEX costs. We are pleased to have partnered with Ericsson yet again on this opportunity to demonstrate technology leadership."
The Ericsson-unique solution eliminates the need for three radios in a coverage area, and instead uses one radio unit that connects three antennas together to provide high quality coverage without the power usage that is necessary in larger cities. The name of the solution is symbolic, as PSI in Greek has the shape of a fork with three teeth, representing the innovative set-up of the network.
Anders Lindblad, President of Region Middle East and Africa, Ericsson, says: "This is an example of innovating with our customers to try new and sustainable ways of bringing mobile broadband to the masses. Our continued partnership with Vodafone Egypt has allowed us to take a huge leap in deploying solutions for more sustainable mobile networks. Psi-Coverage allows operators to reduce carbon footprint while maintaining quality of services to their customers."
Ericsson and Vodafone recognize the increasingly important role of the mobile industry in helping to achieve sustainable development. Psi-Coverage helps achieve more energy efficient networks through better resource consumption. As Egypt transforms into a highly connected market, mobile users will enjoy benefits of data with less strain on energy consumption.
NOTES TO EDITORS
Download high-resolution photos and broadcast-quality video at www.ericsson.com/press
Ericsson is a world-leading provider of communications technology and services. We are enabling the Networked Society with efficient real-time solutions that allow us all to study, work and live our lives more freely, in sustainable societies around the world.
Our offering comprises services, software and infrastructure within Information and Communications Technology for telecom operators and other industries. Today 40 percent of the world's mobile traffic goes through Ericsson networks and we support customers' networks servicing more than 2.5 billion subscriptions.
We are more than 110,000 people working with customers in more than 180 countries. Founded in 1876, Ericsson is headquartered in Stockholm, Sweden. In 2012 the company's net sales were SEK 227.8 billion (USD 33.8 billion). Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ, New York stock exchanges.
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FOR FURTHER INFORMATION, PLEASE CONTACT
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Phone: +46 10 719 69 92
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Phone: +46 10 719 00 00
E-mail: investor.relations@ericsson.com
On November 7, 2012, Ericsson (NASDAQ:ERIC) informed its employees about a change in operations in Sweden, which also included reduction of positions covering all job areas, including sales, general and administration, R&D, supply and service delivery.
Ericsson in Sweden has reduced its operations by 1,399 positions by adapting the organization, in cooperation with the unions. This has resulted in 919 employees being given notice.
As announced previously, in absolute numbers, the majority of the reductions are in Ericsson's Networks unit, but all parts of the organization in Sweden are to some extent affected, impacting all its Swedish sites except Falun, Hudiksvall, Kalmar and Katrineholm.
Actual employees made redundant per site: Borås (24 employees), Gothenburg - Lindholmen and Mölndal (100), Karlskrona (30), Kumla (89), Linköping (78), Luleå (7), Lund (14), Malmö (8), Stockholm (569).
Expected restructuring costs associated to these actions estimated to approximately SEK -1.5 b., impacting Group results in Q1, 2013.
NOTES TO EDITORS
Total number of employees in Sweden was 17,712 on December 31. Ericsson has sites in: Borås (approx 1,100 employees), Falun (approx 230), Gothenburg - Lindholmen and Mölndal (approx 2,200), Hudiksvall (approx 300), Kalmar (aprox 20), Karlskrona (675), Katrineholm (approx 400), Kumla (approx 650), Linköping (approx 1,300), Luleå (approx 50), Lund and Malmö (approx 100), Stockholm (approx 10,700).
Photos of Tomas Qvist attached.
Ericsson reduces operations in Sweden: www.ericsson.com/thecompany/press/releases/2012/11/1655718
Download high-resolution photos and broadcast-quality video at www.ericsson.com/press
Ericsson is a world-leading provider of communications technology and services. We are enabling the Networked Society with efficient real-time solutions that allow us all to study, work and live our lives more freely, in sustainable societies around the world.
Our offering comprises services, software and infrastructure within Information and Communications Technology for telecom operators and other industries. Today 40 percent of the world's mobile traffic goes through Ericsson networks and we support customers' networks servicing more than 2.5 billion subscriptions.
We are more than 110,000 people working with customers in more than 180 countries. Founded in 1876, Ericsson is headquartered in Stockholm, Sweden. In 2012 the company's net sales were SEK 227.8 billion (USD 33.8 billion). Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ, New York stock exchanges.
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FOR FURTHER INFORMATION, PLEASE CONTACT
Ericsson Corporate Communications
Phone: +46 10 719 69 92
E-mail: media.relations@ericsson.com
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Phone: +46 10 719 00 00
E-mail: investor.relations@ericsson.com
In response to Chile's data traffic growth and increasing demand for mobile broadband coverage, Entel has extended its strategic partnership with Ericsson (NASDAQ:ERIC) to supply its 2G, 3G and end-to-end IP network for 4G/LTE and will continue joint efforts to enhance customer experience.
Antonio Büchi, CEO of Entel, says: "At Entel, we value innovation and the skills to provide excellence in service; we have made huge efforts in delivering an unbeatable customer experience on mobile broadband and now on 4G. Together with Ericsson, we will be able to provide our customers with superior mobile broadband services and performance, based on a complete end-to-end 3G-LTE solution,"
Nicolas Brancoli, Vice President of Ericsson Latin America, says: "This contract marks another significant milestone for Ericsson and further consolidates our network leadership in the region. Entel's continued trust in us is demonstrated by their selection of Ericsson as the sole supplier for their 2G, 3G and 4G/LTE networks. We're proud and happy to extend our partnership and support Entel's launch of its territory-wide LTE network. Consumers will benefit from an optimal mobile broadband user experience."
Entel and Ericsson have a long-term partnership since 1997, which is based on a common commitment to enhance telecom experience for customers in Chile.
Under the three-year agreement, Ericsson will be the sole supplier of Entel's 2G, 3G and 4G network. The new LTE network includes a multi-standard radio access network supported by RBS 6000 base stations, Evolved Packet Core (EPC) with Evolved Packet Gateway on the SSR 8000 family of Smart Services Routers and SGSN-MME based in the latest MKVIII architecture. The agreement also includes network rollout, integration and support, deployment services, and network management with Ericsson's Operations Support Systems for Radio & Core.
Ericsson is the world leader in LTE and today has more than 130 commercial LTE contracts on six continents, of which over 60 networks have already gone live. LTE commercial networks worldwide currently cover 455 million people, of which 305 million people are covered by LTE networks delivered by Ericsson. Once currently awarded contracts have been deployed, Ericsson will have a more than 50 percent share of the Latin American LTE market in terms of volume.
NOTES TO EDITORS
LTE Media Kit www.ericsson.com/thecompany/press/mediakits/lte
Download high-resolution photos and broadcast-quality video at www.ericsson.com/press
Ericsson is a world-leading provider of communications technology and services. We are enabling the Networked Society with efficient real-time solutions that allow us all to study, work and live our lives more freely, in sustainable societies around the world.
Our offering comprises services, software and infrastructure within Information and Communications Technology for telecom operators and other industries.Today 40 percent of the world's mobile traffic goes through Ericsson networks and we support customers' networks servicing more than 2.5 billion subscriptions.
We are more than 110,000 people working with customers in more than 180 countries. Founded in 1876, Ericsson is headquartered in Stockholm, Sweden. In 2012 the company's net sales were SEK 227.8 billion (USD 33.8 billion). Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ, New York stock exchanges.
www.ericsson.com
www.ericsson.com/news
www.twitter.com/ericssonpress
www.facebook.com/ericsson
www.youtube.com/ericssonpress
FOR FURTHER INFORMATION, PLEASE CONTACT
Ericsson Corporate Communications
Phone: +46 10 719 69 92
E-mail: media.relations@ericsson.com
Ericsson Investor Relations
Phone: +46 10 719 00 00
E-mail: investor.relations@ericsson.com
4G, lte, 3G, mobile broadband
At the MPLS & Ethernet World Congress in Paris, Ericsson (NASDAQ: ERIC) today announced two key developments that reinforce its commitment to developing 4th Generation IP networks: a powerful in-house ASIC, the Ericsson SNP 4000 network processing chipset, and extension of the Ericsson IP Operating System as the common platform across the entire IP portfolio.
The Ericsson SNP 4000 brings to the market industry-leading packet processing capacity with an ASIC solution that integrates thousands of processing cores to enable products that can scale from 100Gbps to 1Tbps and applications that support millions of subscribers. With its innovative hyper-threaded run to completion architecture running the Linux OS with full support for GNU based C/C++ tool chain, the SNP 4000 will herald a new era of feature velocity and power efficiency in IP products.
Ericsson IP Operating System, that currently runs on the flagship SSR 8000 family of Smart Services Routers, will be extended to cover all Ericsson IP products. The MINI-LINK SP 415 and MINI-LINK SP 420 running Ericsson IP Operating System are being showcased at the MPLS World Congress in Paris.
Michael Howard, principal analyst of carrier networks at Infonetics Research, says: "The announcements Ericsson made today are noteworthy. With rapid growth in smart devices and personalized services, one of the biggest challenges presently facing operators is to keep up with bandwidth demand while simultaneously delivering complex services. While service provider SDNs will greatly simplify functions like dynamic service chaining, these SDN capabilities will still rely on packet processing. I'm sure service providers will be interested in the service capabilities that the SNP 4000 enables, since it is based on a new hyper-threaded architecture, running thousands of "run-to-completion hardware threads" or "cores." It is an industry first to support this many cores. These cores will enable functions such as service isolation and virtualization, which can be used to support multiple high-touch applications simultaneously."
Jan Häglund, Vice President, Head of IP and Broadband Networks, Ericsson, says: "Since 2011, when we first outlined our vision of the fourth generation of IP Networks, we have consistently made investment decisions that ensure our IP portfolio builds networks that not only give consumers an amazing experience, but also ensure profitable growth for our customers in an era of rapidly growing video traffic and Cloud and OTT applications. A common operating system and high-touch packet processing capabilities are incremental steps towards the broader Service Provider SDN architecture that will be a key enabling technology for 4GIP going forward. SNP 4000 sets a new benchmark as it increases the feature velocity by ten times and is twice as energy efficient as available network processors."
Ericsson is participating in the co-located MPLS & Ethernet World Congress, V6 World Congress and SDN Summit 2013 in Paris, running from March 19-22. On March 21, Ericsson and Telstra will present a joint keynote session at the SDN Summit. Visit us at booth 105 for live demonstrations of the SNP 4000 and Service Provider SDN use cases of Virtualized Aggregation Networks and Dynamic Service Chaining.
NOTES TO EDITORS
MPLS & Ethernet World Congress, V6 World Congress and SDN Summit
http://www.uppersideconferences.com/index.htm
Download high-resolution photos and broadcast-quality video at www.ericsson.com/press
Ericsson is a world-leading provider of communications technology and services. We are enabling the Networked Society with efficient real-time solutions that allow us all to study, work and live our lives more freely, in sustainable societies around the world.
Our offering comprises services, software and infrastructure within Information and Communications Technology for telecom operators and other industries. Today 40 percent of the world's mobile traffic goes through Ericsson networks and we support customers' networks servicing more than 2.5 billion subscriptions.
We are more than 110,000 people working with customers in more than 180 countries. Founded in 1876, Ericsson is headquartered in Stockholm, Sweden. In 2012 the company's net sales were SEK 227.8 billion (USD 33.8 billion). Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ, New York stock exchanges.
www.ericsson.com
www.ericsson.com/news
www.twitter.com/ericssonpress
www.facebook.com/ericsson
www.youtube.com/ericssonpress
FOR FURTHER INFORMATION, PLEASE CONTACT
Ericsson Corporate Communications
Phone: +46 10 719 69 92
E-mail: media.relations@ericsson.com
Ericsson Investor Relations
Phone: +46 10 719 00 00
E-mail: investor.relations@ericsson.com
Ericsson (NASDAQ:ERIC) and STMicroelectronics (NYSE:STM) today announced an agreement on the way forward for the joint venture (JV) ST-Ericsson. As communicated by the parent companies in December 2012, both have been working together toward a strategic solution for the JV. After months of intensive joint work, the parent companies have selected the strategic option which maximizes their respective future prospects and growth plans.
The main steps agreed upon to split up the JV are the following:
The formal transfer of the relevant parts of ST-Ericsson to the parent companies is expected to be completed during the third quarter of 2013, subject to regulatory approvals.
After the split up it is proposed that Ericsson will assume approximately 1,800 employees and contractors, with the largest concentrations in Sweden, Germany, India and China.
It is also proposed that ST will assume approximately 950 employees, primarily in France and in Italy, to support ongoing business and new products development within ST.
Today, it is also announced that Carlo Ferro is appointed President and Chief Executive Officer of ST-Ericsson, effective April 1, 2013. Ferro is currently Chief Operating Officer of ST-Ericsson and succeeds Didier Lamouche who, as previously announced, will pursue opportunities outside the company. Ferro will lead the work in securing both business continuity of ST-Ericsson and effective completion of the transition phase.
Hans Vestberg, President and CEO, Ericsson and Chairman of the Board of Directors, ST-Ericsson said: "I welcome Carlo Ferro as the new President and CEO of ST-Ericsson. Carlo has over twenty years of experience in the semiconductor industry and a strong track record in driving and managing complex transformation projects. He has been a contributor to the solid progress ST-Ericsson has made the past year in terms of strategy execution and significantly lowering the breakeven point."
"Ericsson continues to believe that the thin modems hold a strategic value to the wireless industry. With this move Ericsson will create a highly focused "thin modem only" operation - an area in which both parents have invested significant amounts to establish industry leading technology and Intellectual Property," said Hans Vestberg. "Initial customer contacts give support to the belief that our modems will meet the requirements of the manufacturers in the rapidly growing smartphone and tablet market."
As previously communicated, Ericsson has made provisions of SEK -3.3 b. in 2012 which will cover costs related to the implementation of the strategic option. Once the multimode thin modem business has been fully integrated into Ericsson in Q4 the operation will be reported as a standalone segment. Our current best estimate is that it will generate operating losses of approximately SEK 0.5 b. in Q4, 2013, primarily related to R&D expenses.
The thin modem technology developed within ST-Ericsson has evolved into a unique architecture for low power, highly integrated multimode multi-band modems covering GSM/GPRS/EDGE, TD-SCDMA, HSPA+, LTE (TDD/FDD), LTE-Advanced, the widest array of frequency bands and a feature set that includes Single RF Chip Carrier Aggregation, VoLTE and IMS.
An LTE/HSPA+/3G/2G modem based on this evolved architecture was recently demonstrated at Mobile World Congress in Barcelona and has received its first global operator certification.
CONFERENCE CALL FOR ANALYSTS, INVESTORS AND MEDIA
The conference call for financial analysts, investors and media will begin at 14:00 CET (13:00 UK time, 09:00 Eastern Daylight Time in the US, and 22:00 local time in Japan). CFO Jan Frykhammar and Chief Strategist Douglas Gilstrap, will comment on the announcement and take questions.
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(Participants will have to enter the confirmation number when dialing into the conference.)
Please call in at least 15 minutes before the conference call begins. As there are usually a large number of callers, it may take some time before you are connected.
A live audio webcast of the conference call will be available at www.ericsson.com/investors and www.ericsson.com/press.
NOTES TO EDITORS
Download high-resolution photos and broadcast-quality video at www.ericsson.com/press
Ericsson is a world-leading provider of communications technology and services. We are enabling the Networked Society with efficient real-time solutions that allow us all to study, work and live our lives more freely, in sustainable societies around the world.
Our offering comprises services, software and infrastructure within Information and Communications Technology for telecom operators and other industries. Today 40 percent of the world's mobile traffic goes through Ericsson networks and we support customers' networks servicing more than 2.5 billion subscriptions.
We are more than 110,000 people working with customers in more than 180 countries. Founded in 1876, Ericsson is headquartered in Stockholm, Sweden. In 2012 the company's net sales were SEK 227.8 billion (USD 33.8 billion). Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ, New York stock exchanges.
www.ericsson.com
www.ericsson.com/news
www.twitter.com/ericssonpress
FOR FURTHER INFORMATION, PLEASE CONTACT
Ericsson Corporate Communications
Phone: +46 10 719 69 92
E-mail: media.relations@ericsson.com
Ericsson Investor Relations
Phone: +46 10 719 00 00
E-mail: investor.relations@ericsson.com