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Technology Stocks : Ericsson overlook? -- Ignore unavailable to you. Want to Upgrade?

To: Mika Kukkanen who wrote (2802)	2/16/1999 3:45:00 PM
From: Maurice Winn	Respond to of 5390

Mika, I'm glad you like "Current Price is..." auctions. While the side by side people paying different very different prices could happen in very unusual circumstances - say a touchdown by Babe precipitating a mass of calls, usually people would be in a mall or somewhere and prices would vary more slowly. A bit at a time. Much like the stock market which people seem happy to accept. In the stockmarket we all know and accept and are happy with the idea that prices change based on supply and demand. Sometimes they can change very quickly. The happiness would come because people who are able to understand and appreciate such a pricing plan would see that they would get cellular service for half the price per month [or maybe much less if they manage their calls well] that other pricing plans would allow. You see, the current loading on cellular networks is something like 20%. If extra subscribers were taken on who used the networks when the prices were suitable, the loadings could be boosted to perhaps 70%. People are very price elastic in their calling patterns. At 10 cents per minute I'll yak away as the mood takes me. At $1 per minute it's only when I have to and then only for a few seconds. Stupid and greedy network operators would try to con the 'Current Price is ...' customers, which would result in loss of business as people quickly figured out which networks actually ran their systems properly. Sure, it wouldn't suit everybody - many people can't stand so much 'unknown' in their lives. They want $1 a minute, anytime, anywhere. I'd rather avoid peak loading [unless it's an emergency] and make my calls at cheap times. With the price right there on the screen, I wouldn't need to try to remember how many minutes I've used up from my 200 minutes per month allowance. Nor when peak and off peak times are. Plus I'd be sure of getting through whenever I wanted to - even in the busiest time when other people will be getting busy signals on competing dumb networks which don't vary prices. Heck, I'd be able to rent my phone out to desperate callers for $100 per minute and pay for all my calls like that. They could pay the $2 per minute and get straight through. Next day they'd cancel their cruddy old service. So my network would get more subscribers and be able to operate even more efficiently. I think once connected, the contract would mean you continue service at that price, though I see no reason why a continuous pricing service couldn't operate for those happy to use it. A dinging tone could be sent to the person paying each time the price went up by say 50 cents, $1 or at whatever price per minute you set the warning tone. I'm sure a network operating at 50% capacity would be more profitable than one operating at 20%. Thoughts appreciated. Maurice

To: Mika Kukkanen who wrote (2802)	2/17/1999 6:18:00 AM
From: Mika Kukkanen	Read Replies (1) \| Respond to of 5390

Ericsson's 1998 options program Ericsson's top management and key personnel will receive options. The options program was decided by the Board of Directors in August 1997 and covers approximately 500 people. The program is intended to enhance Ericsson's share value and improve earnings per share. In addition the program is meant to attract and motivate top management and key personnel in this highly competitive industry. The option program grants participants selected in 1998 seven-year call options on Ericsson B shares. A total of 623 500 options have been acquired at market price for a total cost of SEK 125 million including social charges. The distribution of the options to participants amounts to 83,5 percent of the maximum for 1998 and is made based on developments of earnings per share and base salary and bonus category of the individual participant. The individual allocation will range between 300 and 7,000 options. The strike price for the options is SEK 220:42. The program will continue and cover 2,000 participants during 1999. Ericsson is the leading provider in the new telecoms world, with communications solutions that combine telecom and datacom technologies with freedom of mobility for the user. With more than 100,000 employees in 140 countries, Ericsson simplifies communications for its customers - network operators, service providers, enterprises and consumers - the world over. Please visit Ericsson's Press Room at: ericsson.se FOR FURTHER INFORMATION, PLEASE CONTACT Lars A. Stålberg, Senior Vice President, Corporate Communications Phone: +46 8 719 3162 Johan Fant, Senior Vice President, Corporate Financial Control Phone:+46 8 719 0737 ------------------------------------------------------------ Please visit bit.se for further information The following files are available for download: bit.se bit.se