Ericsson Expects Telecom Network Traffic to Increase Tenfold by 2012

Authored by Jay Baage on May 9, 2007 - 11:32am.

Stockholm, Sweden - Carl-Henric Svanberg, Chief Executive of Ericsson, the world's largest maker of wireless networks, said on Wednesday that he expects its fixed and mobile network traffic to increase tenfold by 2012. The statements were released in conjunction with the company's capital market's day in Stockholm.

"Our way of communicating is changing rapidly with the rollout of mobile and fixed high-speed broadband", said Svanberg. "As a result, we expect traffic in fixed as well as mobile networks to grow tenfold by 2012. With high-speed broadband, we will see multimedia to start a new era in telecom."

Ericsson has previously only provided its traffic outlook for 2006-2011, which it expected to increase sevenfold.

Ericsson CEO Carl-Henric Svanberg also underlined the company's ambitions to mainly grow internally, after having completed a number of recent acquisitions.

"We're not entering into a major acquisition period. We have a lot of the acquisitions behind us," Svanberg told capital market day attendees, and referring to Ericsson's purchases of Britain's Marconi, Norway's Tandberg Television ASA as well as Redback Networks Inc. and Entrisphere in the U.S.

Joakim Baage

Related Links:
Ericsson's CEO shows confidence in the future - continued growth with good profitability (Marketwire)
http://www.ericsson.com/