To: Maurice Winn who wrote (22871 ) 2/11/1999 9:13:00 PM From: Ruffian Respond to of 152472
Is LU Waiting In The Wings For The Q> Business News Ericsson Happy to Be Solo in Mobile Internet Market February 11, 1999 Business News Archives Swedish telecoms equipment maker LM Ericsson is confident it does not need a partner in the mobile Internet market, Chief Executive Sven-Christer Nilsson said. "I'm convinced that we will succeed well with the strategy we've chosen," Nilsson told an analysts meeting when asked why Ericsson had not been part of any deal across the Atlantic in recent weeks. Lucent Technologies recently bought Ascend, wireless phone maker Motorola set up a joint venture with computer-networking company Cisco and British Telecom teamed up with Microsoft. But Nilsson said Ericsson's acquisition in September of Advanced Computer Communications (ACC), a California-based maker of computer network products, had provided Ericsson with technology superior to that which Lucent would get from Ascend. Microsoft's venture into mobile Internet access has worried competitors but industry analysts say the Symbian consortium led by Britain's Psion Plc, in which Ericsson is a member, still holds the inside track. Nilsson said the Motorola-Cisco $1 billion joint venture to build wireless products that use Internet standards would heat up competition but his company was ready for any challenge. "If I've understood it correctly their cooperation is very much about router solutions for mobile IP, and this technology we've already got inhouse," Nilsson said. Ericsson was betting that the explosive growth in Internet and wireless subscribers will lead to future growth in Internet IP products, also known as Internet-related network solutions, which were linked to mobile technology. "We've got a unique position when it comes to grabbing this new market. Knowledge in this area is not in Silicon Valley or for that matter in Boston, but it's in Kista," Nilsson said, referring to the town near Stockholm which is home to many Swedish IT companies including Ericsson. Nilsson said Ericsson expected to receive orders this autumn which showed it had chosen the right track in focusing on IP solutions. "Regarding the IP side it is a very small market today," he said. "But we think it is mobile IP that will be the future." Ericsson shares were down half a crown at 200.5 at 1159 GMT in a generally negative market.