Ericsson

Over 1,000 networks in 140 countries utilize our network equipment and 40 percent of all mobile calls are made through our systems. We are one of the few companies worldwide that can offer end-to-end solutions for all major mobile communication standards.

The company is organized in three business units (Multimedia, Services and Networks) and in addition there is also the joint-venture Sony Ericsson.

Multimedia

The multimedia organization was established January 1, 2007 to give increased focus and visibility for this area, and the business unit has been very successful. It includes service layer products, revenue management systems, enterprise solutions and mobile platforms. The recently acquired companies TANDBERG Television, Mobeon and Drutt Corporation have reinforced our multimedia product portfolio.

Sales of multimedia represent about 10 percent of Ericsson net sales.

Services

Our services portfolio includes network rollout and professional services, such as managed services, consulting and education, systems integration and customer support. We are the industry leader in managed services, managing networks that serve more than 120 million subscribers. In addition, as a leading provider of hosting solutions, we enable operators to launch multimedia services simply, quickly and cost-effectively.

By outsourcing certain activities to Ericsson, operators can focus on their core business of attracting, serving and retaining customers. We realized the strategic importance of services early on, and by the end of the 1990s we were the first vendor to form a services business unit. Today, our services organization leads the industry, with 24,000 professionals in 140 countries. We use our experience, skills and scale to support customers in expanding their businesses.

Operators can minimize risk by engaging Ericsson to integrate equipment from multiple vendors and handle technology-change programs, as well as to design and integrate new solutions.

Sales of professional services represent about 25 percent of net sales and are reported separately.

Networks

Ericsson is the global leader in the area of 2G (GSM) and 3G (WCDMA/HSPA) mobile networks. Around 50 percent of the operators who have begun rolling out mobile broadband technology have chosen Ericsson WCDMA/HSPA radio networks. This evolution from GSM to HSPA means that tasks that once took minutes to accomplish over the mobile network (such as downloading a song) will now take seconds. GSM and WCDMA/HSPA share a common core network, meaning that previous investments are preserved as operators shift from voice-centric to multimedia networks. We are now actively involved in the development of standards for the Long-Term Evolution (LTE) of 3G which will further enhance the consumer experience.

The recent acquisitions of Marconi, Redback Networks and Entrisphere strengthened our offering for Internet Protocol (IP)-based networks. The expansion of our fixed broadband offering has been an important step in reinforcing our ability to address network operators as they begin integrating their fixed and mobile networks. Our core network solutions include industry-leading soft-switch, IP infrastructure, IMS, media gateways, and microwave and optical transport solutions to provide cost-effective management of voice and data traffic.

Networks account for around the remaining two-thirds of our net sales.

Mobile Phones

Through our Sony Ericsson Mobile Communications joint venture we offer a range of mobile devices, including those supporting multimedia applications and other services allowing richer communication.

Services

Ericsson offers a wide range of multimedia services besides Mobile TV including but not limited to:

• Me On TV
• Mobile Advertising
• Mobile Music
• Mobile Games
• Service Delivery Platforms
• Mobile Office and Enterprise Applications
• IPTV