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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: John Biddle who wrote (29083)	11/19/2002 7:18:47 AM
From: John Biddle	Read Replies (1) \| Respond to of 197252

Ericsson: No need to be pessimistic about telecom future Juno Su, Taipei; Chinmei Sung, DigiTimes.com [Tuesday 19 November 2002] digitimes.com Contrary to the overall pessimism, Ericsson, the world’s largest mobile phone network equipment supplier, holds a rather upbeat assessment for the still struggling telecommunications industry, citing worldwide mobile phone penetration rate is at only 17% – leaving plenty of room to grow. Kurt Hellstrom, president and CEO of the company, said the telecom industry is a growing industry because only 17% of the global population, about one billion people, have handsets. It is estimated that by 2007, the number will grow to 1.8 billion. Separately, he said the Asia-Pacific region would see the greatest growth and account for 50% of mobile phone traffic. China’s mobile phone market is growing by five million subscribers a month, and Japan is the largest mobile Internet market, accounting for 80% of the 70 million worldwide users, according to Hellstrom. Hellstrom believes that third-generation (3G) services are the answer to mobile communications needs and WLAN (wireless local area network) will complement 3G services. He explained that once mobile phone users leave hot spots they will need 3G networks to continue mobile Internet services. In addition, one 3G base station can cover 10,000 WLAN locations. Hellstrom said that the 3G services are not being “delayed” but rather are progressing. He added that Ericsson has shipped about 10,000 3G base stations worldwide – a sign that wireless carriers are building the infrastructure. He estimated that 80% of 3G systems will use either the EDGE (enhanced data rates for global evolution) or WCDMA (wideband code division multiple access) standard, and the CDMA2000 standard will take the remaining 20% share. According to Hellstrom, Ericsson will keep investing in Sony Ericsson, its unprofitable handset joint venture with Sony, and aim to take a 10% market share next year. However, he declined to give a concrete forecast of the company’s financial performance next year. According to The Wall Street Journal, Ericsson’s net loss widened by 30% compared to a year earlier to US$597.5 million for the third quarter due to heavy restructuring charges. It generated US$3.5 billion in sales generated from its network equipment business, down 29% from a year earlier.