ERICSSON BACK ON THE GROWTH PATH AGAIN THANKS TO MOBILE INTERNET.

Having announced on 21 July a threefold increase in its net earnings for the first six months of 2000 compared with the first half of 1999, Swedish telecoms firm Ericsson is back on the growth path again, thanks to mobile Internet services, analysts say. The development of orders and sales reflects the continued growth and rapid expansion of mobile infrastructure. Ericsson expects the number of mobile subscribers to double over the next two years to 1 billion in 2002 and predicts that in 2004 mobile Internet will have over 600 million users - more than the number of fixed Internet users. Ericsson reported a 351% jump in pre-tax earnings of 18.6 billion Kronor overall and in the Network Operator segment, it doubled operating margins from 9 to 18%. With a sales increase of 34% to Skr 124 billion for the first six months, and an increase in orders by 45%, driven by rapid growth in demand for mobile infrastructure and mobile phones, the Swedish telecommunications giant seems to have caught up again with its Finnish rival Nokia, the world's number one with a 25% market share. "These results confirm Ericsson's leading position in mobile infrastructure. Now we are building the mobile Internet. We have invested more in R&D than anyone else in the industry to expand our lead", Ericsson's Chairman Kurt Hellstrom told the press. "So far, we have captured over 50% of both the GPRS and the 3G market - solid proof of our unmatched position as market leader." The Network Operators segment represents almost 70% of Ericsson's business. Sales in this segment increased by 32% for the six months, while orders increased by 47%. Benefiting from its broad base of system technologies and a global presence, Ericsson grew...