Ericsson will invest US$8.2mn in hosting center

Swedish equipment maker Ericsson will invest 25mn reais (US$8.2mn) in a hosting center in Brazil which opened this week, local daily Gazeta Mercantil reported on Friday (August 6). Since the project was launched in April, the majority of the investment has already been applied and new investment will largely depend on future sales. "This was the initial investment for the center to begin operations," Ericsson Brazil services vice-president Edmilson Toledo was quoted as saying. Service currently represents 30% of the company's revenue stream and, given the hosting center, Ericsson expects to increase its participation to 40% over the next two years. The hosting center offers telephone operators the option to reduce their initial investment and share risks with the service supplier. Depending on the availability of connection, the center in Sao Paulo will be capable of serving all Latin American countries and such services are already being negotiated. The center is ready to begin operations immediately and it is already in negotiations with two operators, whose names were not disclosed.