To: Ruffian who wrote (70294 ) 4/7/2000 12:10:00 AM From: LBstocks Respond to of 152472
Ericsson's Persson on CDMA Systems Business: Company Comment By Scott Lanman San Diego, April 6 (Bloomberg) -- Following are comments by Ake Persson, president of Ericsson AB's CDMA Systems division in San Diego, during an interview after briefing analysts on the division's business and strategy. Ericsson bought the division from Qualcomm Inc. last year as part of settling a two-and-a-half- year legal dispute. Qualcomm developed the code-division multiple access, or CDMA cell-phone technology that's now used by more than 50 million people. On progress since Ericsson acquired the money-losing wireless- phone network equipment business almost a year ago: ``We have improved our relationships with the customer base. We have spent a lot of time on improving the products that we acquired, and we have been very successful in doing that. And in the meantime, we also have developed a complete new systems offering from Ericsson that we will be launching within the next few months.' On using Qualcomm chips in the equipment: ``We are doing what makes commercial sense for us. At this moment, we're using Qualcomm chipsets. Traditionally we have always been designing our own ASICs (application-specific integrated circuits, or custom chips) at Ericsson. That's what we're doing for Wideband CDMA, for instance. CDMA, we are not doing that, simply because we are a new entrant to the market and Qualcomm is a good supplier. But there are also other sources. So it's just a matter of what's commercially sensible for us.' On employee morale after reports some were unhappy over a settlement Qualcomm offered workers in a class-action lawsuit: ``There are certain pockets of people within the company that is more concerned about this than others are. ... We do have an attrition level which is somewhat higher than we would like to have. It's not dramatic, though, and we are hiring people all the time. I think that over time, people will forget about the history and go forward when they understand the challenges and the opportunities they have with Ericsson here. But for some people, it's been very dramatic. And it's, from a human perspective, easy to understand.'