Solid growth mobile systems fixed network solutions DURING 1999 m

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Solid growth mobile systems fixed network solutions DURING 1999 m

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Solid growth mobile systems fixed network solutions
DURING 1999 mobile systems operations grew more than percent. took lead areas mobile Internet developed sold systems that help customers migrate their existing investments forward into telecom world network architecture.
RICSSON'S GOAL BEING leading supplier telecom world demands that Company should able offer broad portfolio network solutions continue focus strongly datacom market. Achievements during 1999 show that prospects achieving this goal favorable. Ericsson's Network Operators/Service Providers business segment experienced eventful year 1999. dramatic increase traffic noted telecommunications networks. Very rapid growth mobile telephony continued strong growth Internet traffic combined generate exponential growth network traffic. mobile networks, number subscribers increased percent during year, while traffic increased even more. More than million users were connected Internet during 1999. result that network capacity increased during year much faster rate than anyone expected. this business segment, these trends contributed extremely strong growth, strengthening segment's position Ericsson's largest, with percent sales. sales amounted 149,9OO (123,200) 1999, which increase percent. With operating margin percent, business segment also Ericsson's most profitable.
AHEAD During year, Ericsson signed first commercial contract system with DoCoMo Japan. Ericsson will supply radio base stations terminals ntt's network, which when taken into commercial operation next year, will world's first network. Additional contracts were signed during year covering commercial test systems. Test systems wcdma edge operation with more than operators, which means that Ericsson ahead main competitors this area. Planning systems underway over world. Many operators have applied licenses, Ericsson discussing deliveries with most them. However, license allocation expected gain momentum until sometime 2000, which means that rest world will somewhat behind Japan when taken into commercial operation. GPRS EDGE anticipation systems, gprs attracted considerable interest during year. This part system that makes possible significantly increase data capacity using packetswitching techniques networks. Ericsson signed large number gprs contracts during year, thereby winning half business measured operator's subscriber base. Ericsson also leading with respect standard, edge. BellSouth Rogers Cantel have placed orders such systems, which expected taken into operation 2001. MOBILE INTERNET Technologies that allow wireless access Internet received considerable attention during year. business segment working hard further strengthen Ericsson's offering with respect these technologies, which include operating systems,
BUSINESS SEGMENT NETWORK OPERATORS SERVICE PROVIDERS 1999
MATS DAHLIN, EXECUTIVE VICE PRESIDENT, BUSINESS SEGMENT NETWORK OPERATORS SERVICE PROVIDERS.
MOBILE STANDARDS reasons Ericsson world leader mobile systems that Ericsson only company able offer mobile systems according existing standards. This applied first- second-generation systems also true third-generation systems. Ericsson long been principal drivers behind development third-generation (3g) mobile communications. With announcement March 1999 agreement with American company, Qualcomm, Ericsson further strengthened position mobile systems. part agreement, Ericsson acquired Qualcomm's infrastructure operations, thus allowing Company expand product portfolio with cdmaOne, previously known cdma is-95. When itu, 1999, announced decision became clear that Ericsson will able supply systems each three most important standards.
1999 Orders booked, sales, Operating margin, Operating margin, percent Number employees 151.8 149.9 19.6 64,695
1998 127.6 123.2 15.3 68,645
Change (percent)
BUSINESS SEGMENT NETWORK OPERATORS SERVICE PROVIDERS
communications platforms content. Ericsson active broad front this area. Content being developed cooperation with large number companies operators. Ericsson's demonstration systems various parts world valuable asset illustrating opportunities provided technology. order further promote development applications other technologies, Ericsson took ownership stake companies such oz.com during year. Although these investments might seem somewhat peripheral Ericsson's core business, Ericsson intends take active part driving market mobile Internet support ipbased solutions that generate more network traffic.
GENERATION FIXED NETWORKS With market share over percent, Ericsson dominates market mobile systems. Ericsson also leading suppliers infrastructure fixed communications. system, sales which exceed those other switching system, foundation Ericsson's success each these markets. During 1999, more lines were sold than ever before, bringing total installed base million fixed lines. This world's largest installed base fixed telecommunications major source future revenues. Several Ericsson's operator customers beginning work upgrading their networks next-generation network architecture. This architecture will handle data multimedia communications fixed wireless networks. MIGRATION SOLUTION During 1999, Ericsson's engine concept achieved considerable success. This solution migration circuit-switched networks fixed
telecommunications generation networks that will handle circuit-switched ip/atm-based packet-switched traffic. During 1999, Great Britain, Netherlands, Telia Denmark Spain chose engine modernizing their networks. order from Diginet, which intends engine extensive Latin American network with wireless access, confirms that this solution that also fits newly established operators. engine's success result strategic marketing activities reposition Ericsson supplier networks data telecommunications. This made possible restructuring Wireline Systems business unit become supplier total solutions services. positive results achieved engine only examples that confirm that Ericsson players datacom market. area ip-based voice telephony, called VoIP (Voice over ip), Ericsson world leader after having signed several important contracts during 1999. Ericsson's systematic investments communication also resulted establishment Datacom Services business unit Boston U.S.
TOTAL SUPPLIER concerted effort further strengthen Ericsson's expertise technology made during past year accelerated significantly during 1999. Several important acquisitions partnerships were announced during year. Consequently, Ericsson complete product portfolio tomorrow's data telecom networks. Today, Ericsson unique capacity offer total solutions types wireless fixed networks. order strengthen Ericsson's offering segment's customer groups, Ericsson Services
2401, complete picobase station installation indoors.
BUSINESS SEGMENT NETWORK OPERATORS SERVICE PROVIDERS
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established business unit during year. With strong portfolio services, Ericsson's position total supplier, systems integrator partner strengthened.
INVESTMENTS DATA CAPACITY Several business segment's mature products continued show favorable margins during 1999. Mobitex such product, which during 1999 underwent somewhat renaissance. Increased demand wireless data communication U.S. more than doubled number subscribers Ericsson's customers during year. Ericsson received orders equipment Mobitex network, which time being country's only nation-wide network wireless data communication. lmds, Ericsson's system wireless broadband access, optimized high-speed traffic, attracted major interest market. Ericsson signed first contracts system being used trials American operator nextlink. Ericsson mainly targeting enterprise market, long-term lmds enjoy wider application, licenses issued operators surface. system based Ericsson's successful mini-link system, which currently holds 30-percent market share. Ericsson also offers cdpd, first packetswitched technology tdma that provides services twice speed existing networks. number important contracts were signed during year with at&t others. During 1999, isdn made strong comeback. Ericsson's customers have large installed base copper networks offering conventional narrowband services that excellent source add-on sales. strong growth Internet traffic increased interest among operators investing greater capacity existing copper network. Ericsson products easily allow these operators increase bandwidth desired rate, first with isdn possibly later with adsl. Ericsson's technology substantially increases capacity wireline transportation networks while maintaining high transmission security level. Contracts were signed with Spain U.S.-based during year. SHRINKING RAPIDLY business segment's internal work during 1999 characterized continued restructuring operations. This applied primarily Wireline Systems business unit, which during past year sharply reduced number employees. During 1990s, number employees companies currently included this business unit reduced more than percent totaled some 16,000 persons year-end 1999. During 2000, restructuring Wireline
Systems will continue, workforce will adapted order volumes technology. implemented structural measures, together with satisfactory sales solutions, generated earnings that exceeded expectations contributed positively Ericsson's profitability. dominant share reductions within business segment during 1999 took place through outsourcing. example, 2,500 employees began working employers when production units Visby, Katrineholm, Longuenesse Madrid were transferred external partners. employees were transferred staffing company Proffice. similar solution affected personnel Stockholm area arranged through establishment Framtidsforum, which helping about 1,000 employees business segment find career paths. Those have succeeded within year will offered employment with Manpower, another staffing company.
INNOVATION CELLS Special Business Operations business unit includes operations that Ericsson preparing phase product portfolio operations that completely have resulted finished commercial products. example Private Radio Systems Unit, which sold beginning 2000 U.S. company, Com-Net Critical Communications. business unit also includes units purely entrepreneurial character, often organized innovation cells, which groups formed around ideas that considered worth developing. instance, E-box, Ericsson's product remotely controlling household equipment telephone network, developed such group.
MacroDens, power module supplying current circuit cards similar components.

Solid growth mobile systems fixed network solutions DURING 1999 m

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