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Wei Hans Ericsson CEO says no large-scale acquisitions - Ericsson-IT industry - underground drillin by asdcvbm, hjyee





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Wei Hans Ericsson CEO says no large-scale acquisitions - Ericsson-IT industry - underground drillin by
Article Posted: 02/24/2011
Article Views: 89
Articles Written: 1055
Word Count: 640
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Wei Hans Ericsson CEO says no large-scale acquisitions - Ericsson-IT industry - underground drillin


 
Business,Business News,Business Opportunities
Beijing on March 29 morning news, according to foreign media reports, Ericsson CEO Wei Hans (HansVestberg) Friday, said he expects the telecommunications equipment industry will be further consolidation, but said Ericsson will not

Wireless Network Contact any acquisition equipment business. Guardian Hans said: "Our internal growth is good." Ericsson to 1.13 billion U.S. dollars last year to buy Nortel

Network Part of the wireless business assets, but Ericsson is unlikely to bid for other big industry, companies such as Motorola's network equipment business.

Wei Hans said that Ericsson will continue to strengthen through the acquisition of multimedia services and service business, but the main acquisition targets will not be big companies. He also said he does not believe that to enter new markets through acquisitions, he was more inclined to buy a small scale to enhance the existing business.

Ericsson is working to enhance existing business, to grasp the opportunities brought by mobile Internet development. Wei Hans is expected in the next few years will be 500 million mobile devices, including

Mobile , Electronic Reader and Notebook The use of cellular network. Mobile operators are by large-scale investment to meet the user data Communicate Needs. Wei Hans said some U.S. operators, network equipment has been "very close" to meet the demand, including China, other parts of the world's carriers will reduce capital expenditure. Wei Hans Chinese carrier refused to comment on the level of expenditure, but also said that the telecommunications equipment industry is a "rise or fall" of the industry.

Wei said Hans Ericsson back in 1890 in the Chinese telecommunications equipment and services market, the current position in the Chinese market is very strong. He said that at present the Chinese market for Western companies no backlash.

Ericsson, Huawei and other Chinese competitors are facing the pressure, leading to decreased bargaining power. Wei Hans said that the price of telecommunications equipment in the past period of time the situation is very serious, but Ericsson need to adapt to this environment.

Gartner Friday said Ericsson in 2009, the share of the global telecom equipment market is still leading, but the Chinese competitors have been closing the gap. Including mobile, fixed network and the routers and switches, including the global carrier equipment market in 2009 has shrunk to 79 billion U.S. dollars, down from 93 billion U.S. dollars in 2008.

Gartner data show that Ericsson's share in this market last year, from 2008, 18.7% to of 20.8%, but the share of Huawei and ZTE, respectively from 11.5% and 4.1% to of 14.2% and 6.7%. Wei Hans said he did not change the Ericsson deal with competition policy, but will work to strengthen Ericsson's technological advantage.

In response to declining revenues for the network equipment business, Ericsson gradually expand its services business. In the U.S. market, Ericsson in October last year, took over the SprintNextel network. Ericsson's services business revenue last year contributed 13%, and health services business, said Hans future contribution will generate stable revenues.

In a report Friday, Deutsche Bank, Ericsson's stock will be downgraded to "sell," said Ericsson's networks and services in the new contract lost market share, while the beneficiaries, including

Nokia Siemens Communications and Alcatel-Lucent. Deutsche Bank believes that Ericsson's future results may be disappointing.

Deutsche Bank, said Ericsson's mobile backhaul business behind its competitors. Last week, Alcatel-Lucent won the Verizon Wireless 4G network backhaul infrastructure support contract. Wei Hans said on Ericsson's mobile backhaul service is very important to the business last year and growth, while Ericsson has recently carried out a number of related acquisitions.

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