Ericsson's global reach; Swedish equipment firm expands fast but feels the strain

Article Abstract:

L.M. Ericsson Telefon A.B., a telecommunications equipment supplier in more than 80 countries, continues to grow and outpace competitors despite recent financial strains. Founded in 1876, the Swedish company is currently led by 52-year-old CEO Lars Ramqvist. Ramqvist is credited with turning around Ericsson in the mid-1980s and pulling the company out of a disastrous venture into computers. Ericsson holds 60 percent of the western European cellular telephone market and 40 percent of the world market. Ramqvist is funneling research dollars into digital cellular systems; Ericcson now has a 40 percent share of orders for the new Global System for Mobile Communications (GSM) for the European Economic Community. The company is developing public telecommunications equipment for the US market, digital cellular systems for the US and Japan, and pocket telephones. In the midst of this success, profits remain tight. Pretax profit for the first half of FY 1991 fell 26 percent to 1.78 billion Swedish kronor from 2.4 billion, revenue was flat and orders plunged.

Radiotelephone communications, Telegraph & other communications, Management, Europe, Cellular telephones, Telecommunications equipment, Product development, Telefonaktiebolaget LM Ericsson, Growth (Physiology), International markets, Communications Equipment, Financial Analysis Software, Growth, Strategic Planning, Company Profile, Competition, Cellular Radio, Mobile Phones, World Market, Ramqvist, Lars

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IBM aims to offer data services via GTE cellular phone network; expanded access to serve business users presents big challenge to AT&T

Article Abstract:

IBM and GTE Corp have signed a technology and marketing agreement that will use GTE's cellular phone network to connect wireless devices to IBM's corporate data services. IBM's data services provide electronic mail, data services, Internet access and voice transmission to thousands of corporate customers. The services have grown by over 25% per year, producing billions of dollars in revenue. Mobile sales and repair people are the most frequent users. Under the agreement, mobile users would be able to access the service anywhere in GTE's service area. GTE will promote IBM's data services to its own business associates. GTE will profit from fees charged for each transaction and increased traffic. IBM will promote GTE services with its laptop computers and create special promotions to lure customers. IBM will look for other cellular providers to increase the range of the service.

Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing, Cellular Mobile Tel Equip, Wireless network, Wireless LANs, International Business Machines Corp., IBM, Contracts, GTE Corp., GTE, Wireless local area networks (Computer networks), Cooperative agreement for product distribution

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