- Ericsson has transformed the industry for modules providing mobile broadband access, taking them from a niche-market product to the mass market and lowering the barriers for PC and tablet OEMs so that connectivity can be included at a reasonable cost
- The market for modules providing mobile broadband access is now well established and Ericsson has decided to phase out its mobile broadband modules business and continue focusing on enabling wireless connectivity through its network infrastructure business and the joint venture ST-Ericsson
Ericsson (NASDAQ:ERIC) entered the market for mobile broadband modules in 2007 by developing and selling modules for building in mobile broadband into PCs. The company’s strategy was to drive the industry towards mass-market products, enabling wireless connectivity from any device at a reasonable cost. Since then, most PC manufacturers have launched products with mobile broadband capabilities. More recently, Ericsson and others have also become part of a new trend: tablets with mobile broadband capabilities.
“Our entry and investments on the market for mobile broadband modules have changed the industry for these modules, making it possible for a number of device manufacturers to include connectivity affordably. However, our position on the market does not provide the scale we need to achieve the desired profitability. We have therefore decided to phase out the business,” says Johan Wibergh, Head of Business Unit Networks at Ericsson.
Ericsson will fulfill its delivery commitments to existing customers.
A total of nearly 160 employees, of whom about 140 are based in Sweden, will be affected by the decision. Those based in Sweden will be offered new positions within Ericsson, and the ambition is to help all affected Ericsson employees to secure new positions within the company.
Ericsson is the world’s leading provider of technology and services to telecom operators. Ericsson is the leader in 2G, 3G and 4G mobile technologies, and provides support for networks with over 2 billion subscribers and has the leading position in managed services. The company’s portfolio comprises mobile and fixed network infrastructure, telecom services, software, broadband and multimedia solutions for operators, enterprises and the media industry. The Sony Ericsson and ST-Ericsson joint ventures provide consumers with feature-rich personal mobile devices.
Ericsson is advancing its vision of being the “prime driver in an all-communicating world” through innovation, technology, and sustainable business solutions. Working in 175 countries, more than 90,000 employees generated revenue of SEK 203.3 billion (USD 28.2 billion) in 2010. Founded in 1876 with the headquarters in Stockholm, Sweden, Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ New York.