Slow growth in 2005: Ericsson
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ERICSSON has posted a third-quarter profit in line with analyst expectations but said it expects only slight growth in mobile networks in the coming months.
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Mobile phone infrastructure firm Ericsson sees worse than expected quarterly results and lowers its forecasts for 2007.
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Swedish telecommunication equipment maker Ericsson reported a gain in second quarter net earnings Friday but shares fell by more than four percent as its numbers came in short of market expectations.
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(InfoWorld) - The take-up rate of broadband Internet access slowed sharply across Europe last year, while in some key markets, former monopoly operators are reclaiming market share lost to rivals in recent years, the European Competitive Telecommunications Association said in a statement Thursday. ECTA believes the two trends are connected. Growth in the number of broadband subscriptions grew 7 percent in the third quarter of last year, compared with 23 percent in the third quarter of 2005, according to the ECTA Broadband Scorecard, a quarterly analysis of the market. Growth almost stalled in a number of countries, including Denmark and Belgium, which experienced justÂ 3 percent growth. France saw growth slow to 10 percent after a much stronger performance in 2005, the analysis found. Spain, Sweden, and Austria also suffered a slow-down, it said. "The Scorecard shows that growth has stalled in a number of countries where we have seen the power of the incumbent on the increase, including Denmark and Belgium, which experienced a paltry 3 percent growth in broadband penetration," said Steen Clausen, managing director of ECTA. France has fallen to eighth place in ECTA's scorecard, well behind the U.K. for the first time, he said. "This is extremely disappointing news from some of the countries that have traditionally been at the forefront of Europe's broadband revolution," Clausen said. "Until recently, France was the poster child for broadband with some of the most attractive triple-play packages in Europe. It now needs to be vigilant if it is to maintain its position," he added. In contrast, in Germany, Deutsche Telekom's market share dropped below 50 percent for the first time in the third quarter of last year, and at the same time, it had a surge in growth in broadband penetration. The U.K. also experienced faster growth in broadband subscriptions. "It seems that the U.K. has learned some of the lessons that propelled France up the league table and is now reaping those rewards with a multitude of offers to consumers. Germany too is starting to show signs of progress, which is very welcome after a slow start," Clausen said. Europe is home to some of the world's leading broadband countries. However, its position in the fast track of broadband take-up globally could be put at risk if regulators do not act to re-enforce competition and open markets, ECTA warned. The link between increased power for incumbents and stagnation has been confirmed by studies, including one from SPC Network, which concluded that Europe could gain an extra 20 million broadband lines by opening markets further to competition. "This is a powerful warning for governments not to protect national champions, either now or for the future," Clausen said. "Monopolies have never been good for consumers, and in some industries, governments have to take action to let competition flourish. In energy, for example, the Commission is proposing extra measures to open markets to competition. We believe this could provide some valuable lessons for telecoms." European Union rankings in the third quarter of the last three years are as follows: Ranking Q3 2004 Q3 2005 Q3 2006 1 Sweden Denmark Denmark 2 Denmark Netherlands Netherlands 3 Netherlands Finland Finland 4 Belgium Sweden Sweden 5 Finland Belgium U.K. 6 France France Luxembourg 7 Austria U.K. Belgium 8 U.K. Luxembourg France 9 Germany Austria Austria 10 Portugal Germany Germany 11 Spain Portugal Portugal 12 Italy Italy Italy 13 Luxembourg Spain Spain 14 Ireland Ireland Ireland 15 Greece Greece Greece The ECTA Broadband Scorecard is available at the association's Web site.
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Ericsson (ERICb.ST), the world&#39;s  biggest mobile network maker, reported softer-than-expected  second-quarter earnings on Friday but said the company  continued to outperform the market.
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Mobile communications specialist Ericsson reported strong third-quarter earnings on Friday but said it expected only slight growth in mobile networks in the coming months.
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Ericsson, the world's leading mobile networks maker, reported sharply lower results Thursday, in line with last week's profit warning that shocked investors, but said the market could touch bottom by early 2008.
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Nokia (NOK1V.HE), the world's largest mobile phone maker, expects slowing mobile phone growth in 2005 but plans to launch more phones next year and regain lost market share, the company said on Thursday.
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STOCKHOLM Ericsson, the world&#39;s biggest producer of mobile phone networks, reported a sharp rise in third-quarter profit on Friday but said market growth next year would be slower than in 2004.
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Ericsson, the world's largest supplier of equipment for mobile phone networks, reported fourth-quarter earnings below expectations on Friday and reduced its 2007 market growth forecast.
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Swedish telecoms equipment maker Ericsson reported a lower-than-expected fourth-quarter gross profit margin on Thursday as the rollout of more mobile networks added to costs, sending its shares down despite strong orders.
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Ericsson, the world&#39;s biggest mobile  network maker, reported softer-than-expected second-quarter  earnings on Friday but said the company continued to outperform  the market.
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Swedish telecommunication equipment maker Ericsson on Friday reported a gain in second quarter net earnings but its sales performance fell short of market expectations.
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U.S. telephone and cable companies saw the growth of high-speed Internet services slow in the second quarter to the lowest rate in a year, an industry research firm said on Tuesday.
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LM Ericsson, the world's largest maker of wireless networks, said Friday that strong sales in Asia helped boost earnings 12 percent in the second quarter but its shares dropped as the results missed expectations.
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Business & money: Like-for-like sales grow at slowest rate for a year as consumers rein in spending.
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(InfoWorld) - Semiconductor sales in Europe last year grew more slowly than the worldwide average, dragged down by slow growth in microprocessors in the region, according to a report from the European Semiconductor Industry Association. Worldwide sales of semiconductors grew 8.9 percent in 2006 over the previous year, reaching $247 billion in sales. But in Europe, sales were up just 1.6 percent in 2006, the group said. The increase was driven by DSPs (digital signal processors), dynamic RAM, flash memory, discrete devices such as power transistors, and application-specific chips for consumer, automotive and industrial applications. While sales were low in December, they helped boost the yearly figure because they were better than the previous year. In the final month, European semiconductor sales were $3.5 billion, down 5.1 percent over November. However, December sales were up 5.4 percent compared to the same month in 2005. December produced low sales around the world but were still better than 2005. For the month, worldwide semiconductor sales were $21.7 billion, down 3.6 percent compared to November but up 9 percent over December 2005. The report comes amid mixed results from chip makers around the globe for the final quarter of 2006. GermanyâsÂ Infineon Technologies reportedÂ a 27 percent increase in sales for its quarter that ended Dec. 31 compared to the previous year, despite a significant drop in sales from its group that supplies chips for mobile phones. ButÂ Taiwan Semiconductor Manufacturing Co. postedÂ a 5.4 percent drop in sales for the same period compared to the corresponding quarter in 2005.