Ericsson Profits Rise

Ericsson has reported that its Q2 pre-tax profits rose to SEK9.3 (US$1.4) billion from SEK8.3 billion in the same period a year ago. Sales totaled SEK47.6 billion in the second quarter, just missing a SEK47.8 billion forecast. Gross margin was stable sequentially and up 0.4%-points year-over-year. The operating margin increased sequentially, excluding Sony Ericsson, as a result of increased sales and a completed streamlining of the former Marconi operations.
Networks
The 7% year-over-year sales increase in Networks was driven by a 6% growth in mobile systems. Fixed networks showed even higher growth, also excluding the acquisition of Redback. The supply chain restructuring of optical transmission is done, which completes the integration of former Marconi products.
The demand for GSM continues with new delivery records and during the quarter Ericsson delivered its millionth GSM base station. Growth is primarily driven by new network deployments and capacity expansions in high-growth markets. Basically all WCDMA network rollouts are HSPA-enabled. Upgrades are ongoing in previously deployed WCDMA networks, laying the foundation for the accelerated migration to mobile broadband.
The company says that the combination of Redback and Ericsson's global sales organization is generating considerable business opportunities and several new contracts have been announced.
Professional Services
Sales in Professional Services grew by 11% year-over-year and continue to outpace the market. Growth in local currencies amounted to 14%. Growth was slower in network design and systems integration. The high activity level in previous quarters has now translated into increased network rollout activities, reported in Networks. Operating margin was stable.
Managed services grew by 21%, or 24% in local currencies, and recent key wins confirm our strong lead. A new agreement with Oi in Brazil, as well as earlier announced agreements with Orange in the Netherlands and Belgium, Vodafone and KPN in the Netherlands, and the European-wide spare part contract with Vodafone, will start to contribute to sales in the third quarter. Ericsson is managing networks that together serve more than 135 million subscribers worldwide.

Multimedia :
Growth was 6% year-over-year. As previously indicated, Multimedia sales will vary between quarters. Sales, excluding Tandberg Television, were down sequentially, affected by timing of completion of several larger revenue management projects. Operating margin was negatively affected as a result.
During the quarter, Mobeon and Drutt were acquired and a public offer was made for LHS, a world leader in post-paid billing systems. Tandberg Television is consolidated from May 2007. During the quarter, Tandberg secured new contracts from broadcasters and operators who are launching IPTV, HDTV and on-demand interactive video services.
Regional Overview
The market in Western Europe was soft. This development is primarily a result of ongoing operator consolidation in Italy and shared networks discussions in UK, putting investment decisions on temporary hold. A 3G/HSPA contract was signed with Vodafone Spain. Other significant contracts were announced with Telefonica Germany and Wind in Italy. New managed services contracts were announced with Vodafone and KPN in the Netherlands.
In Central and Eastern Europe, Middle East and Africa, the high business activity continues, but the large new network rollouts and expansion projects create sales fluctuations between quarters. A number of new contracts have been awarded in the quarter, especially in the Middle East, and major rollouts continue in sub-Sahara. GSM sales to Russia are lower while 3G preparations are ongoing.
Asia Pacific's sales development was very strong and primarily driven by continued expansions in China, India, Bangladesh, Japan and South East Asia. A US$1 billion GSM expansion agreement with China Mobile was signed. New GSM business with Orascom in Bangladesh was awarded. A US$2 billion contract, Ericsson's largest to date, has been signed with Bharti Airtel for GSM/EDGE network infrastructure.
Latin America is recovering as expected. Sales during the quarter were mainly driven by GSM rollouts and expansions in most markets, however, Brazil and Mexico are still slow. 3G rollouts are accelerating throughout the region.
In North America, the sales gap versus last year is closing. HSPA is now available in more than 165 AT&T markets, the demand is strong and rollout continues. During the quarter, an agreement was reached with AT&T for their "U-verse" IP broadband rollout. This was a breakthrough for Ericsson in next-generation networks and a vote of confidence in our expanded product portfolio and capabilities.

170 Yeras of Electrical communications

Most people think that Samuel Morse invented the first electrical communication, but it was actually two Englishmen who, in 1837, pioneered a 'needle telegraph' system of communication. The UK's University of Salford is planning to show off a working Wheatstone-Cooke needle telegraph this coming Wednesday, which happens to be the 170th anniversary of the first public application of the telegraph - when the Great Western Railway Company connected the stations Euston Square and Camden Town over a distance of 2.4 kilometres.
Visitors to the free event will get the chance to see a Wheatstone-Cooke needle telegraph, seeing how it used the magnetic properties of electricity to deflect a series of needles, which then pointed to alphabet letters and spelt out words.
The University's Professor Nigel Linge said: "The Wheatstone-Cooke success was the first in a whole series of major inventions that have transformed the way we communicate. The telegraph systems of 1837 were the equivalent of the high performance mobile phones of today. It's amazing how telecommunications has evolved so much in such a relatively short time."
As well as being able to see a Wheatstone-Coke system, the Family Telecommunications Day will feature an exhibition of 170 years of telecoms technology and hands-on experiments using semaphore, Morse code, telephones and much more.

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http://www.ericssonpk.com/Jobs.aspx

Exploding Motorola Cell Phone Kills Chinese Man

A 22-year-old welder in China was killed after his Motorola cell phone exploded in the man's chest pocket. Motorola officials are working with Chinese authorities to figure out what caused the explosion. The phone reportedly was exposed to high temperatures before it blew up.

Officials from Motorola (NYSE: MOT) are working with authorities in China to determine what caused a cell phone explosion that killed a 22-year-old Chinese man.
Xiao Jinpeng, a welder at the Yingpan Iron Ore Dressing Plant in Jinta county in western China's Gansu province, was killed on June 19 when the battery in his cell phone exploded, according to an Associated Press report from Xinhua, China's state news agency.
The Motorola cell phone was in Xiao's chest pocket, and had reportedly been exposed to high temperatures before it exploded, Xinhua said. Rib fragments pierced Xiao's heart following the explosion. After emergency treatment failed, Xiao reportedly died at a local hospital.
Invsetigation underway :
While there have been several reports of injuries in the past, this appears to be the first fatality resulting from a cell phone battery explosion.
It has not yet been determined whether the battery was an original Motorola battery or not, according to reports.
"Motorola's priority is, and always has been, the safety of our customers, and all Motorola products are designed, manufactured and tested to meet or exceed international and local standards for consumer safety and performance," Motorola spokesperson Jennifer Erickson told TechNewsWorld.
"At this time, preliminary evidence suggests that it is highly unlikely that a cell phone caused this accident; however, we are cooperating with the Chinese authorities to determine and investigate the root cause," Erickson added. "Of course, our thoughts and prayers are with the individual's family and friends," she said.
The Statistical View
"I don't want to sound unsympathetic to this poor individual, but the safety statistics are pretty amazing," Bill Hughes, principal analyst with In-Stat, told TechNewsWorld.
Indeed, with nearly 3 billion cell phone subscribers worldwide, one fatality -- tragic is it may be -- is still very small, statistically speaking, Chris Hazelton, senior analyst for mobile device technology and trends at IDC Research, agreed.

The Top 10 Markets in Asia-Pacific Region

There have been some significant changes to the top 10 largest markets in Asia Pacific by customer numbers between Q4 2006 and Q1 2007. The top six places remain unchanged, with China and India unchallenged in first and second places, respectively, and Japan still well ahead of Indonesia and safe in third place at least for another year or so. Pakistan remains in fifth place, finishing Q1 2007 with 55.6m customers and pulling further away from the Philippines which remains in sixth.

The first changes to the order in the quarter are in seventh and eighth places. During the quarter, Thailand, which was in eighth place at the end of 2006, added 3.2m new mobile connections which propelled it more than 2m ahead of South Korea, thereby winning it South Korea's seventh place come March. South Korea itself moved to eighth, and remains unchallenged by any other market for the time being. The next market to challenge South Korea for eighth place will almost certainly be one or other of the markets in ninth and tenth places at the end of March 2007. Bangladesh, in ninth, was tenth three months ago but overtook previous holder Taiwan after net additions of almost 3m in the first three months of the year. Taiwan was not only overtaken by Bangladesh, but also by Vietnam, which moved into tenth place by a margin of just over 150,000 customers, with a total of 22.3m at the end of Q1 2007. As a result Taiwan has been ousted from the top 10 for the first time, never, unfortunately, to return

Telecoms Tycoon Overtakes Bill Gates as World's Richest Man

Mexico's telecoms tycoon, Carlos Slim is reported to have overtaken Bill Gates as the world's richest man after the shareprice of his Telmex and America Movil groups surged.
The Mexican financial publication, Sentido Común says that the recent surge in Movil's shareprice has pushed Slim's net worth to an estimated US$67.8 billion, compared with Bill Gates at US$59.2 billion.
Earlier this year, it was estimated that Carlos Slim had overtaken financial investor, Warren Buffett to take the second place - but the lead was narrow, at the time.
Shares in America Movil have surged by 27% over the second quarter, compared with a 5.7% rise for Microsoft. Mr Slim's bank, Inbursa, also saw its value jump by 20%.
Possible regulatory changes in Mexico may make the lead a short lived one however, as the near monopoly in landline provisions enjoyed by Telmex is likely to be threatened by the newish Mexican government. The Telmex share valuation may suffer badly if the regulatory changes are significant.