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Will Ericsson Make Major Move This Year? Ericsson [Nasdaq: ERICY] isn't



RELATED SYMBOLS: (SNE)(LU)(ERICY)

Jan 21, 2003 (Communications Today/PBI Media via COMTEX) -- but the Swedish
company is likely to shed its stake in its handset joint venture with Sony
[NYSE: SNE] to have greater financial flexibility. Ericsson faces another
difficult year of cost cutting in order to reach profitability and regain
investor confidence, according to Technology Business Research (TBR) analysts.
Ericsson's earnings slump isn't from losing infrastructure customers, but from
mobile operators canceling or delaying deployment or upgrade plans while keeping
Ericsson as a key supplier. Ericsson continues to add contracts with existing
customers, such as the recent three-year extension of its contract with Canadian
operator Rogers AT&T Wireless under which it will supply 2G TDMA and GSM
infrastructure equipment as well as next-generation GSM technology.

However, the Sony Ericsson Mobile Communications handset venture is gaining
little traction in the marketplace. In order to recover its investment in the
venture while also exiting the handset market, Ericsson will sell off its Sony
Ericsson stake this year when the valuation of the venture increases, TBR
expects. Proceeds from that sale would allow Ericsson to make a major move, such
as bidding to acquire after Lucent Technologies [NYSE: LU] wireless network
business for its CDMA market share. For more on hot topics within the wireless
sector, be sure to read the latest edition of Wireless Data News. For
subscription information, visit the "newsstand" at http://www.TelecomWeb.com.
[Copyright 2003 PBI Media, LLC. All rights reserved.]

Communications Today, Vol. 9, No. 12 [Copyright 2003 PBI Media, LLC. All rights
reserved.]



Copyright 2003 PBI Media, LLC. All rights reserved.

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Daniel Nieves