Despite seeing a year on year decline in net sales, Swedish vendor Ericsson has announced a 41 per cent year on year increase in net income for the first quarter of 2014. Net income for the firm stood at SEK1.7bn for 1Q14, compared with SEK1.2bn in 1Q13, while net sales dropped from SEK52bn in 1Q13 to SEK47.5bn in 1Q14.
Ericsson has announced Rima Qureshi, a 20-year veteran of the company, as its new chief strategy officer, following the resignation of Doug Gilstrap earlier in April. Gilstrap joined Ericsson in 2009.
Swedish vendor Ericsson has reorganized its networks division, splitting it into two new business units; Radio and Cloud & IP. The Cloud & IP unit will drive Ericsson’s work on virtualization, an area in which the firm has ground to make up on its competitors. Executive VPJohan Wibergh will continue to lead the Networks segment, although Ericsson has yet to name the heads of the two new business units.
Network Functions Virtualization (NFV) is set to become one of the defining trends of the era in the mobile network. Spanish incumbent Telefónica is the first operator to lay out its approach to NFV and its plans are both detailed and aggressive. Mike Hibberd met with Global CTO Enrique Blanco ahead of Telefónica’s NFV announcement, to learn of the changes in store.
Operator group Telenor has called on infrastructure vendor Ericsson to provide network equipment and managed services for its network in Myanmar. The two firms have signed a five year contract which sees Ericsson implementing equipment in a multivendor environment as well as provide managed services for the network.
Spanish multi-national operator Telefónica has unveiled a wide-reaching Network Functions Virtualization programme that it says will see it have more than 30 per cent of new infrastructure virtualized by 2016. The initiative, which will launch in June this year and has been named Unica (which is Spanish for ‘unique’), provides a framework for Telefónica’s “global, end-to-end virtualisation deployment,” the firm said.
Facebook turned ten in early February and, like all ten year olds, it is prone to over sharing. The Informer has long lurked on Facebook, a silent voyeur struck by an often morbid curiosity to click on the banal and fatuous items in his newsfeed. And if your newsfeed looked anything like the Informer’s in early February, it was chock full of people sharing their ‘life story’—Facebook’s gift to the world after a ten-year social bender.
Telecoms trade association the GSMA has announced that it has joined the Alliance for Affordable Internet (A4AI), a coalition with 50 members, including Google, Alcatel-Lucent, Ericsson, Facebook, Intel and Microsoft, committed to bringing down the cost of internet access in developing nations.
European network vendors Ericsson and Nokia Solutions and Networks have both announced new LTE customers in key Asian markets. Sweden’s Ericsson has won a supply deal with Japan’s KDDI, while NSN has a contract with China Telecom.
Leading infrastructure and solutions vendor Ericsson has reported a 38 per cent increase in net profit year on year for the third quarter of 2013, despite sales dropping by three per cent on the same period in 2012. Profit for the quarter stood at SEK3bn ($472m), while sales were at SEK53bn.
New Zealand will soon have a choice of LTE service providers as Telecom New Zealand gears up to launch 4G services in November this year.
US operators will begin trials of an indoor coverage solution provided by Ericsson in Q2 next year, based on a small cell product that weighs just 300 grams. While it has not officially named a first trial partner, a comment provided for the product’s launch release puts AT&T squarely in the frame. Sebastian Tolstoy, head of business development and strategy for Ericsson’s radio division told Telecoms.com: “As you can see from the release the first operators we’ll go to market with are American operators.”
Half of China Mobile’s LTE infrastructure contracts have been won by local suppliers Huawei and ZTE, according to a report from Reuters that cites industry sources. The report suggests that Ericsson, Alcatel Lucent and NSN have picked up around ten per cent of the business each with their Chinese competitors bagging 25 per cent apiece. The combined value of China Mobile’s LTE contracts is $3.2bn, Reuters said.
facebook-bigFacebook has created an initiative—Internet.org—to bring internet connectivity to the poor and underserved, recruiting a number of telecoms industry vendors as partners. But while the new group cites the importance of mobile operators in bringing connectivity to the unconnected, there are none among the founders.
South Korean operator SK Telecom has announced two deals with European kit vendors as it looks to expand and develop its network services. The operator has expanded its LTE-Advanced service across South Korea using equipment supplied by Ericsson and signed a Memorandum of Understanding with German radio test and measurement equipment manufacturer Rohde & Schwarz to develop next-generation antenna technologies.
Marketing Director, TV & Media, Ericsson: “The growth of mobile network traffic has created a significant challenge for mobile operators”
Following the successful LTE Awards 2013, we speak to Alexander Sem, Marketing Director, TV & Media, Ericsson, winners of the Most Innovative LTE Application/Service category.
Infrastructure vendor Ericsson has reported year on year flat sales in 2Q13, generating SEK 55.3bn. Operating income grew from SEK 2.1bn in 2Q12 to SEK 2.5bn, while operating margin grew from 3.8 per cent to 4.5 per cent.
European operator VimpelCom has launched LTE services in Moscow. The firm’s LTE FDD services are now accessible within the central Sadovoye Ring area of the city. The operator expects LTE services to be available throughout the Russian capital by the end of 2013.
Ericsson’s first quarter profits fell year on year to SEK1.2bn (€139m) from SEK8.8bn for the same period in 2012, largely due to the boost given to 1Q12 numbers by the firm’s exit from the Sony Ericsson device JV. While the vendor recorded a two per cent uptick in sales to SEK52bn it was hit by currency fluctuations and a disappointing performance from its network rollout business.
Telecoms.com met with Ericsson CEO Hans Vestberg at Mobile World Congress in February. He shared his thoughts on the evolution of the operator and vendor markets and explained that managing the pace of change is his greatest challenge.