To: RocketMan who wrote (53811 ) 12/13/1999 1:58:00 PM From: ggamer Read Replies (1) | Respond to of 152472
biz.yahoo.com Ericsson eyes 15 pct mobile market in 2000 By Gillian Handyside PARIS, Dec 13 (Reuters) - Swedish telecoms equipment maker Ericsson said on Monday it hoped to regain 15 percent of the global mobile handset market in 2000 and extend gains thereafter. ``We had 15 percent a year ago. Now it has gone down to 12 or 13 percent. Our objective is to get back up to 15 percent in 2000 and that's just to start with,' Ericsson President Kurt Hellstrom told Reuters. Speaking on the margins of a Franco-Swedish conference on the Internet, he warned the European telecoms equipment industry could lose its world leadership to Japanese rivals if it did not swiftly roll-out ``third generation' mobile phones allowing wireless access to the Internet. His comments come less than a week after Ericsson announced it was teaming up with Microsoft (NasdaqNM:MSFT - news), the world's largest software maker, to develop Internet applications for mobile phones including Web browsers and e-mail. Hellstrom confirmed on December 9 that problems increasing handset output meant Ericsson would not reach its goal of a 10 percent operating margin in its mobile phone division in the fourth quarter of 1999. The news caused a temporary dip in Ericsson's share price but the stock recovered as a result of investor confidence that the deal with Microsoft, announced the previous day, would bear fruit. EXPLOSION IN DEMAND Hellstrom said on Monday all telecoms equipment makers were struggling to raise mobile phone output in the face of an explosion in demand. He said Ericsson was increasing its capacity to manufacture hadnsets week by week. ``The interesting thing is that there is more demand for our phones that we can supply. So it's a positive problem,' he said. Ericsson calculates there will be a billion mobile phone users worldwide buy late 2002 or early 2003. Hellstrom said that of this total some 400 million would use mobile technology to access the Internet. He warned that the European telecoms industry, which leads the world mobile phone market for voice telephony thanks to the introduction of the GSM standard, risked losing out to Japanese rivals in developing wireless Internet access. ``Our leadership is in no way granted. (The Japanese) are extremely determined not to miss the train this time,' he said. He pointed out that Japanese operator Nippon Telegraph and Telephone Corp planned to offer wireless Internet access from April 2001 and news subscribers to Japan's simplified multimedia service Internet-mode were increasing by 150,000 per week. Hellstrom said the absence of plans to issue licences in Sweden to operate mobile multimedia services could seriously undermine the country's IT industry. ``Licensing has to come or otherwise we'll see other countries, particulary Japan, taking the lead here,' he said. ``In Sweden there are no signs we will have licensing in the coming years. We will probably be the last in Europe... which is tragic.'