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What you need to know: This weblog captures key data points about the global telecoms industry. I use it as an electronic notebook to support my work for Pringle Media.

Wednesday, January 25, 2012

Ericsson Sees Slow Operator Spending

On a like-for-like basis, Ericsson said its sales rose 6% year-on-year in the fourth quarter to 63.7 billion Swedish krona. Ericsson said that the weak "sales development in networks is mainly related to North America and Russia, where the trend continued from the third quarter with slower operator spending after a period of high investments in capacity. In addition, we saw some increased operator cautiousness during the quarter due to uncertainties such as economic development and political unrest in some countries."

Ericsson said that software represented 23% (24% in 2010), hardware 40% (37%) and services 37% (39%) of its total sales in 2011.

While global connections have topped six billion, Ericsson said the number of global mobile "subscribers/users is likely around 4.1 billion, representing 60% of the world's population. Around 75% of the subscriptions, or 4.5 billion, are GSM while only 15% are WCDMA/HSPA subscriptions." The Stockholm-based company added that "out of the installed base of subscriptions worldwide only around 10% use smartphones."

"Global fixed broadband subscriptions grew by 17 million to reach 577 million by the end of the third quarter 2011," Ericsson said. "Massive deployments of DSL and FTTH/B (fiber to the home/building) in China alone accounts for around 50% of fixed broadband additions. DSL still represents more than 60% of all fixed broadband subscriptions globally but FTTH/B have caught up with DSL in net additions." source: Ericsson statement

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