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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Maurice Winn who wrote (24204)	10/16/2007 9:30:11 PM
From: elmatador	Read Replies (1) \| Respond to of 218841

I have actually GOT my money on the USA. see what is happening to your money:

To: Maurice Winn who wrote (24204)	10/16/2007 9:38:28 PM
From: elmatador	Read Replies (1) \| Respond to of 218841

After a decade in which some wireless operators invested billions of dollars to obtain licenses and build third-generation networks, the industry is adapting to a more modest reality as the demand growth for mobile data — the justification for the faster, more costly networks — continues to lag behind initial market predictions. Faced with subdued growth, some operators are looking for ways to cut costs. Elmat's money bag is drying up!!! Ericsson Profit Off 36% as Mobile Phone Networks Buy Less Gear By KEVIN J. O’BRIEN Published: October 17, 2007 Ericsson, the world’s biggest maker of mobile phone networks, surprised investors yesterday by announcing that its third-quarter profit fell 36 percent amid signs that some wireless operators were beginning to share their networks to limit costs. Shares of the company, based in Stockholm, tumbled 24 percent. Ericsson, which has 45 percent of the $35 billion market for mobile network equipment and software, said the downturn had been driven by weaker-than-expected demand in the United States and Europe. In those two markets, some operators are pooling networks and some new competitors are renting network access instead of building their own systems. Carl-Henric Svanberg, the president and chief executive of Ericsson, said during an interview that the profit warning was caused in part by invoicing delays in China and was not a sign of a broader industry slowdown. Mr. Svanberg spoke a month after the company had told investors that Ericsson was poised to expand its market share over its top competitors, Alcatel-Lucent and the Nokia Siemens Networks joint venture. Mr. Svanberg said he learned about the quarterly drop in earnings on Monday and that the company decided to disclose the news one day later, more than a week before its planned earnings conference on Oct. 25. Mr. Svanberg said that Ericsson would work to improve its internal financial forecasting procedures to avoid further surprises. “There is no change in the long-term outlook or in the market going forward or in how we see data traffic developing on wireless networks,” Mr. Svanberg said. “But we do need to draw conclusions about how we can better understand the variations that can occur in our industry, and we will improve our early-warning systems.” Despite Mr. Svanberg’s attempts to reassure investors, Ericsson’s warning pulled down the company’s shares, as well as those of Alcatel-Lucent, as some investors read into the announcement the confirmation of a slowdown in demand for new third-generation wireless networks, which are being built for high-speed delivery of mobile data. Ericsson’s shares dropped 6.28 kronor, or 23.8 percent, to 20.10 kronor ($3.11) in trading in Stockholm. Mr. Svanberg said the downturn came as some customers held back on decisions to upgrade GSM networks to 3G networks. Upgrades, Mr. Svanberg said, tend to generate more profit for Ericsson than the construction of new networks, which accounted for half of network sales in the quarter, up from a third. “Because of this shift, we have lost some of the higher-margin upgrades,” he said. Net income fell 36 percent, to 4 billion kronor ($620 million), compared with 6.2 billion kronor in the period a year earlier, according to the company’s preliminary estimates. Ericsson’s operating profit is expected to fall to 5.6 billion kronor ($876 million) from 8.8 billion kronor in the period a year earlier. The operating profit margin most likely fell to 8 percent from 9 percent a year earlier and from 19 percent in the second quarter, the company said. Revenue was estimated to rise 6 percent, to 43.5 billion kronor. After a decade in which some wireless operators invested billions of dollars to obtain licenses and build third-generation networks, the industry is adapting to a more modest reality as the demand growth for mobile data — the justification for the faster, more costly networks — continues to lag behind initial market predictions. Faced with subdued growth, some operators are looking for ways to cut costs. “What Ericsson is experiencing is affecting the whole industry, not just Ericsson,” said Roland Pitz, an analyst at HVB Bank in Munich. “What we are seeing in Europe especially is that operators are either sharing their networks or renting them out to virtual service providers. The net effect is that the pace of investment in network construction is slowing slightly from what it had been.” Next Article in Business (8 of 17) »