Since a radical turnaround in 2003, Ericsson has dominated the wireless infrastructure market. It has built on its leading position in GSM and 3G technologies, and has filled in gaps in its offering via acquisitions, notably of many assets of bankrupt Nortel. This strengthened the Swedish giant’s activities in North America and the CDMA space. The company is under intense competitive pressure from Huawei though, and price wars in the mobile networks market have hurt its margin and sparked a wave of consolidation and cost cutting. These factors have forced Ericsson to broaden its operations and seek higher margin bases, most successfully in managing carriers’ networks on an outsourced basis. It is also developing businesses in fixed/mobile convergence and video, white label services for cellcos, and consulting. In its wireless infrastructure heartland it is leading the first wave of LTE contracts though it expects 3G to be the primary revenue growth generator for the medium term. Ericsson also has some important joint ventures, notably Sony Ericsson for handsets, and ST-Ericsson in chips.
The ecosystem is building for the TDD flavor of LTE, but is still being heavily driven by China Mobile's very particular requirements. Despite the home advantage that may give Huawei and ZTE, Ericsson ...
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