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Published: 23 March, 2009
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Ericsson has agreed to sell its network planning business to Ascom for $169m, in a clear sign of its shift to center its business more clearly on services than products.
The deal will cover the TEMS branded line of products for air interface monitoring and radio network planning, with the transfer of about 300 employees, 180 in Sweden.
Ericsson - which has seen professional and managed services being its major growth area as the equipment sector commoditizes - said it was refining its portfolio to focus on pure services. This had made TEMS of "limited strategic value" within the company.
The TEMS line is the market leader in tools to help plan, deploy and optimize radio networks. It is used by the top 20 mobile operators and the two companies said they believe the new ownership will allow it realize its growth potential more effectively. It will gain a management with strong dedicated focus on network planning, rather than being something of a sideline to the Ericsson infrastructure and services operations.
This is part of a wider movement by the Swedish company to divest businesses that it no longer sees as core to its equipment and services strategies. It recently put its semiconductor business, Ericsson Mobile Platforms, into a joint venture with ST-NXP Wireless, and last week rumors resurfaced that it might exit its handset joint venture, Sony Ericsson, though it denied any such plans on Friday.
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