Ericsson looks towards mobile broadband investment
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.
Vestberg described 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.