Ericsson: Networks remain key to growth
By Li Weitao (China Daily)Updated: 2006-11-28 15:37
Svanberg said the network business will remain the key to Ericsson's future growth. But the firm is also pinning its hopes on professional services and the multimedia business, which are fuelling Ericsson's business growth.
Ericsson is now the world's largest provider of professional telecom services, such as network design, planning, optimization, software development and managed services where mobile telecom equipment manufacturers take over and run networks for operators.
In the third quarter of this year, Ericsson's sales from professional services surged 31 per cent year-on-year.
Multimedia businesses, such as mobile TV, have also been witnessing robust growth in recent years. Svanberg expects multimedia to be a major force in the global telecoms industry. To accelerate its multimedia growth, Ericsson recently restructured its global operations and established a new business division, the Multimedia Unit.
Ericsson's China operations are now also being restructured in line with its global realignment. Svanberg said Ericsson is open to acquisitions in the multimedia sector, including China.
The CEO said Ericsson is in a position to exploit business growth and maintain or even expand its leadership in China's future 3G (third generation) market, given the firm's strong technological know-how and marketing capabilities.
Below are extracts from a recent interview China Daily conducted with
Svanberg about how Ericsson will explore merger and acquisition (M&As)
opportunities and contribute to the growth of China's telecom market.
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