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10 April 2013
| Mitch Sayers
Ericsson CEO Hans Vestberg said the company is looking toward long-term mobile broadband investment at its annual general meeting yesterday, despite not being satisfied with profitability during 2012.
The Swedish vendor posted net
sales of SEK 227.8 billion during 2012, compared to SEK 226.9
billion in 2011, reporting a small increase.
2012’s net profit as "flat" in comparison with
2011’s results, and he stressed the importance of
investing in mobile broadband going forward.
"The work to leverage our
strength in the growth areas mobile broadband, managed services
and operations and business support solutions (OSS and BSS) has
continued with both selective acquisitions and divestments to
enhance and streamline the portfolio," said Vestberg.
Ericsson and STMicroelectronics have planned to divest
ST-Ericsson, its joint wireless products venture, with
Ericsson taking design, development and sales of LTE, 2G, 3G
and 4G multimode modem products.
The Swedish vendor also partnered with MetroPCS in March to
supply equipment for the transformation of
MetroPCS’s evolved packet core network.
Vestberg revealed in the company’s annual report
that North America was one of the company’s
strongest regions for growth, largely driven by mobile
broadband investment and high demand.
The company first made huge strides in North America in July
2009 when it purchased the wireless equipment unit of Nortel
Networks for $1.13 billion.
Nortel had embarked on an LTE development operation in North
America prior to the acquisition, and Vestberg said the
acquisition had "paid off in spades" as a result.