At Ericsson's Capital Markets Day in Stockholm today, President and CEO Carl-Henric Svanberg and top executives met with investors and analysts and gave the company's views on the telecommunications industry and Ericsson's role as a prime driver. "Through our market position and size - and based on technology leadership and operational excellence - we will continue to strengthen our leading position," said Mr. Svanberg.
"Our industry now serves a true mass market - and this market continues to grow. Very soon we will have more than two billion mobile users in the world," said Mr. Svanberg.
The main reason for this growth is that communication is a basic human need and mobile communication addresses this need better than any other technology. Communication has become much more affordable as the result of continuous efficiency gains and economies of scale on all levels of the industry.
Mr. Svanberg also described how operators are increasingly developing their business by expanding and upgrading their networks.
"The fact that Ericsson's sales grew by 17 percent in constant currencies during the first quarter is a reflection of the operators' activity level. It also reflects our growing market share and the increasingly important role we play in our customer partnerships," said Mr. Svanberg.
"3G now is firmly established and the industry is in the second phase of the 3G roll-out. With 3G being deployed throughout the world, it is getting more and more evident that WCDMA is the global choice," continued Mr. Svanberg.
"There is also a lot of potential left in GSM. During 2004 alone, Ericsson shipped GSM transceivers corresponding to 40% of the total volume we had delivered since the introduction of GSM. 2005 is expected to present yet another record," said Mr. Svanberg.
Mr. Svanberg stated that Ericsson has three key assets, which, handled in the right way, will make the company superior to its competitors.
The first asset is technology leadership which includes end-to-end capabilities. Technology leadership has always been Ericsson's trademark and it gives our customers a first mover advantage, which is fundamental in this highly dynamic industry.
The second key asset is global presence. Ericsson has been in this business for 130 years and is present in 140 countries. This provides us with a major asset and gives us a strong competitive advantage.
The third key asset - operational excellence - is the way the company works and how we drive our business. Ericsson has streamlined its entire organization with a focus on creating simplicity and clarity in every part and in every process.
"We are determined to stay ahead of our competitors through technology leadership, staying close to our customers and through working smarter and more efficiently," concluded Mr. Svanberg.
Ericsson is shaping the future of Mobile and Broadband Internet communications through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication companies in the world.
Read more at www.ericsson.com/
For further information, please contact:
Ericsson, Group Function Communications
Phone: +46 8 719 69 92
E-mail: press.relations@ericsson.com
