Ericsson moves to expand market reach
Ericsson has announced plans to revamp its organisational structure, and employ an additional 500 engineers. The new organisation will affect the current business units and the Stockholm headquarters. Under the new arrangement the Swedish company will now have three business units: Networks, Global Services and Multimedia.
The firm said in a release on it website on Monday that its move is due to its desire to take advantage of opportunities to further strengthen its market and technology leadership.
It noted that the development in mobile and fixed broadband capabilities and move toward next generation networks open up for richer multimedia services and accelerates opportunities for growth.
“Ericsson is therefore implementing a more customer-oriented organization with three business units, each optimized for its specific market segment,” the statement explained.
Ericsson’s President and CEO, Carl-Henric Svanberg, said: “We are stronger than ever and the time is right to accelerate the pace of business development and establish a market defining role in the integration of communications and media. We will leverage our position in mobile networks, services and transmission and expand our leadership in next generation converging IP-networks with a focus on multimedia applications and services. Multimedia is an area with obvious business opportunities and potentially a powerful driver for increasing network capacity and investments by operators.”
The integration of Ericsson’s network operations will enable a focused solutions offering, that support operators’ strategies towards converging and more cost efficient networks. The unit will include mobile and fixed access, core and transmission networks, as well as next generation IP-networks. Ericsson is the world leader in mobile networks and has a leading position in fixed networks.
The former business units Systems, Access and Broadband networks will be integrated into the new unit as well as Ericsson Power Modules and Ericsson Cables. The unit will be headed by Kurt Jofs, Executive Vice President and currently head of business unit Access. The new unit will have approximately 21,500 employees.
The unit, consisting of Professional Services as well as Network Rollout, will be unaffected by the new organization and, Executive Vice President, Hans Vestberg, will continue to lead the unit. Ericsson’s services organization has approximately 23,000 employees worldwide.
Svanberg continued: “In the multimedia business we have the content and application management, the technical excellence and execution resources as well as strong relationships with content providers and operators. And let’s not forget another strong asset, Sony Ericsson Mobile Communications, and our close relationship with Sony - which further strengthens our consumer perspective for superior end-to-end offerings.”
The new organization will be in effect as of January 1, 2007.
Business unit Networks will include radio access, core, transport and fixed networks, presently reported under segment Systems. Furthermore, the business unit Networks will include Cables and Power Modules, presently reported under segment Other Operations.
Business unit Multimedia will include Multimedia systems, presently reported under segment Systems and business units Ericsson Mobile Platforms and Enterprise, presently reported under segment Other Operations. Business unit Global Services remains unchanged.
The firm said in a release on it website on Monday that its move is due to its desire to take advantage of opportunities to further strengthen its market and technology leadership.
It noted that the development in mobile and fixed broadband capabilities and move toward next generation networks open up for richer multimedia services and accelerates opportunities for growth.
“Ericsson is therefore implementing a more customer-oriented organization with three business units, each optimized for its specific market segment,” the statement explained.
Ericsson’s President and CEO, Carl-Henric Svanberg, said: “We are stronger than ever and the time is right to accelerate the pace of business development and establish a market defining role in the integration of communications and media. We will leverage our position in mobile networks, services and transmission and expand our leadership in next generation converging IP-networks with a focus on multimedia applications and services. Multimedia is an area with obvious business opportunities and potentially a powerful driver for increasing network capacity and investments by operators.”
The integration of Ericsson’s network operations will enable a focused solutions offering, that support operators’ strategies towards converging and more cost efficient networks. The unit will include mobile and fixed access, core and transmission networks, as well as next generation IP-networks. Ericsson is the world leader in mobile networks and has a leading position in fixed networks.
The former business units Systems, Access and Broadband networks will be integrated into the new unit as well as Ericsson Power Modules and Ericsson Cables. The unit will be headed by Kurt Jofs, Executive Vice President and currently head of business unit Access. The new unit will have approximately 21,500 employees.
The unit, consisting of Professional Services as well as Network Rollout, will be unaffected by the new organization and, Executive Vice President, Hans Vestberg, will continue to lead the unit. Ericsson’s services organization has approximately 23,000 employees worldwide.
Svanberg continued: “In the multimedia business we have the content and application management, the technical excellence and execution resources as well as strong relationships with content providers and operators. And let’s not forget another strong asset, Sony Ericsson Mobile Communications, and our close relationship with Sony - which further strengthens our consumer perspective for superior end-to-end offerings.”
The new organization will be in effect as of January 1, 2007.
Business unit Networks will include radio access, core, transport and fixed networks, presently reported under segment Systems. Furthermore, the business unit Networks will include Cables and Power Modules, presently reported under segment Other Operations.
Business unit Multimedia will include Multimedia systems, presently reported under segment Systems and business units Ericsson Mobile Platforms and Enterprise, presently reported under segment Other Operations. Business unit Global Services remains unchanged.
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