Ericsson says mobile broadband soon more common than fixed
Ericsson, the largest manufacturer of wireless equipment, saw a 61% decrease in second quarter sales profits, but the company said there is no need for concern as the new chief executive, Han Vestberg, stated that there is hope due to the coming rise of the mobile Internet. In fact, Vestberg said they he expects to watch mobile broadband grow more popular than fixed broadband in the coming years.
Vestburg continued to say that while the demands of the mobile broadband market are not evident at the moment, but that there is a high demand for Ericsson to provide support in the future. Vestburg is taking over the position of CEO of Ericsson formerly held by Carl-Henric Svanberg who left to chair BP.
The profit declines overshadowed the increase of Ericsson’s wireless equipment sales which showed a sales increase of 4% up from 33.3 billion kroners to 34.7 billion. Sales of equipment for new networks also rose by about 35% up from 4.8 billion to 5.9 billion kroner.
Vestberg commented that the new deployment of many more mobile broadband networks would lead to an increasing boom as mobile broadband becomes the replacement instead of the accessory to fixed line internet services.
