ERICSSON: SEEN TAKING GREATER FINANCIAL RISKS TO WIN ORDERS
(Nyhetsbyrån Direkt) - Ericsson is expected, just like its competitors, to have to bide its time regarding payment for the construction of 3G networks until the networks in question have become operational, according to Bloomberg News on Friday. France Telecom and other European operators have already invested 80 billion dollars in licenses to build networks that will be approximately 40 times the speed of the present systems. The operators now want the suppliers to help shoulder the financial risks involved by holding off on payments until the new networks have started generating profits. "The terms regarding the 3G contracts are tough on the suppliers," Johan Carlstrom, analyst at Handelsbanken told Bloomberg News, adding that "there are four important criteria to land an order: guarantees that the system works, quick delivery, price and financing".
Translating: The share of the market for UMTS infrastruture, is diretcly related to the depth of the vendors' pocket, right, Mika? |
