Wednesday, November 11, 2015

Ericsson Reaffirms Strategic Objectives

Ericsson is projecting that its total addressable market for 2014-2018 will grow at a CAGR of 2 to 4 percent.  It's ambition is to grow faster than the overall market, while focusing on growth areas, implementing cost control measures and seeking new partnerships.  The newly announced alliance with Cisco targets US$1 billion or more in additional sales by 2018.

At its Capital Markets Day earlier this week in Stockholm, Hans Vestberg, President and CEO, commented: "We are continuing our journey to transform Ericsson into a leading ICT player, building on our leadership in our core business and extending into targeted growth areas. The partnership with Cisco is a key step forward in our company transformation and enables us to create unique value for our customers. Together, we will build on our longstanding technology and services leadership to define the networks of the future and accelerate realization of the Networked Society."

The company said its strategy is to excel in its core business - radio, core and transmission, and telecommunications services - while establishing leadership in targeted areas, such as cloud, IP networks, TV and media, OSS and BSS. The cost and efficiency program announced in November 2014 is on target to achieve annual net savings of SEK 9 billion during 2017.

Some highlights:

  • Ericsson ambition is to capture opportunities with virtualization and cloud for the IP and core portfolio based on its number one position in telecom core networks
  • North America leads the way in average data traffic per active smartphone (GB/month), which is currently at about 4GB per month and projected to grow to around 22GB/month by 2021.
  • 30+ VoLTE, Ericsson supports >50%
  • 11 live Wi-Fi Calling, Ericsson supports 9
  • The Ericsson Dot solution is now live with 41 mobile operators
  • Ericsson is well on the way to 5G, having demonstrated numerous technological firsts, such as LTE-LAA
  • In Global Services, Ericsson now has 65,000 professionals and 20,000 sourced
  • Ericsson has 4 Global Service Centers, incl. Global NOCs
  • Ericsson is investing in new global labs to develop IP services capabilities and solutions

Presentations from the day-long event are posted on the Investors page of the company website.

See also