News
Ericsson expects 10% operating margin from Nortel assets this year
Bnamericas Published: Tuesday, July 28, 2009
Swedish equipment vendor Ericsson (Nasdaq: ERIC) expects that the CDMA and LTE assets it is due to purchase from Nortel for US$1.13bn will bring it an operating margin of over 10% this year, Ericsson's CFO Hans Vestberg said during a conference call on Monday. Both companies announced on July 25 that Ericsson had been the winning bidder for the assets. The sale is subject to approval by US and Canadian courts at a joint hearing on July 28, and Vestberg said Ericsson is confident the deal will go through. The purchase would mark Ericsson's return to development of CDMA after its previous venture folded. Ericsson bought a unit from Qualcomm (Nasdaq: QCOM) in 1999 to settle a patent dispute over the CDMA technology developed by Qualcomm. With the previous acquisition, "we believed CDMA technology would spread worldwide, and here it's very much focused on North America with a given footprint already," Vestberg said, adding that he sees "a couple of years more" of investment in CDMA from carriers, followed by maintenance. The purchase of Nortel's assets would complement a deal reached with US carrier Sprint Nextel earlier this month to outsource operations, Vestberg said. Sprint agreed to pay up to US$5bn over the next seven years to Ericsson for the management of day-to-day operations of its network as Sprint looks to focus on new products and customer retention. The deal represented the first time a US carrier has outsourced any network functions to a third-party vendor. "Our current operations, the recently announced Sprint service agreement and this transaction will create a regional leader which will drive the technology evolution forward in a market that is emerging as the pioneer within LTE," Hector De Tommaso, Ericsson's VP of marketing and business development for South America, told BNamericas.
Subscribe to the leading business intelligence platform in Latin America with different tools for Providers, Contractors, Operators, Government, Legal, Financial and Insurance industries.
News in: ICT
Peruvian operator Bitel extends video surveillance systems to new cities
Bitel presented a second digital project in Trujillo with an investment of US$70,000.
IHS Towers beats 2023 deployment targets, driven by Brazil
The company planned to deploy 1,250 new towers globally last year and approximately 750 in Brazil.
Subscribe to Latin America’s most trusted business intelligence platform.
Other projects in: ICT
Get critical information about thousands of ICT projects in Latin America: what stages they're in, capex, related companies, contacts and more.
- Project: SQROQT01 Data Center
- Current stage:
- Updated:
4 months ago
- Project: SMEXSJ04 Data Center
- Current stage:
- Updated:
4 months ago
- Project: SMEXSJ03 Data Center
- Current stage:
- Updated:
4 months ago
- Project: Carnival Submarine Network-1 (CSN-1)
- Current stage:
- Updated:
4 months ago
- Project: Once Datacenter (ST01)
- Current stage:
- Updated:
5 months ago
- Project: SMEXSJ01 Data Center
- Current stage:
- Updated:
5 months ago
- Project: Sumaré Data Center Expansion 5
- Current stage:
- Updated:
5 months ago
- Project: Sumaré Data Center Expansion 4
- Current stage:
- Updated:
5 months ago
- Project: Sumaré Data Center Expansion 3
- Current stage:
- Updated:
5 months ago
- Project: CloudHQ Paulínia Data Center (GRU Technological Campus) - Second Stage
- Current stage:
- Updated:
5 months ago
Other companies in: ICT
Get critical information about thousands of ICT companies in Latin America: their projects, contacts, shareholders, related news and more.
- Company: GA Energy Services, S.A.P.I. de C.V.  (GA Energy Services)
-
The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
- Company: Skyalert de México S.A.P.I. de C.V.
- Company: Arion Serviços de Telecomunicações Ltda.  (Grupo Arion)
-
The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
- Company: Toshiba Corporation  (Toshiba)
-
Toshiba is engaged in the manufacture and sale of electronic and electrical products, including information and communications equipment and systems, internet-based solutions an...
- Company: Thomas Greg & Sons Limited  (Thomas Greg and Sons)
-
The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
- Company: Netcon Americas
- Company: ERM Argentina S.A.
-
The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
- Company: Consorcio Mendes Holler-GTSur
-
Consorcio Mendes Holler-GTSur is a company formed by Grupo Tecnológico del Sur SpA and Mendes Holler Ingenieria SpA for the execution of the Santiago 03 Data Center (SCL 3) proj...