STOCKHOLM, Sweden—L.M. Ericsson said it’s looking for 500 engineers to accelerate its research into next-generation Internet Protocol-based networks and multimedia technology. The move coincides with Ericsson’s attempts to morph into a more customer-focused organization by reorganizing itself into three business units: Networks, Global Services and Multimedia.
Ericsson, the world’s largest infrastructure vendor, said its new Multimedia business unit will consist of its Systems, Enterprise, Mobile Platforms, as well as Consumer and Enterprise Lab units. The unit will address new business opportunities in providing networked TV, music, gaming, video and radio over fixed and mobile networks.
“In the multimedia business we have the content and application management, the technical excellence and execution resources as well as strong relationships with content providers and operators. And let’s not forget another strong asset, Sony Ericsson Mobile Communications, and our close relationship with Sony (Corp.)—which further strengthens our consumer perspective for superior end-to-end offerings,” commented Carl-Henric Svanberg, Ericsson’s president and chief executive officer.
The company has not chosen a leader for the Multimedia unit’s 4,000 employees.
UBS Investment Research noted that Ericsson’s Multimedia unit will concentrate on opportunities related to digital content and relationships with content providers.
“As digital content becomes more pervasive in the home and mobile world, we believe this will be a key future market,” said UBS. “However, this will also be a heavy investment area (seen by plans to hire 500 engineers), and separating it out from Systems helps protect the Systems margin.”
Ericsson said its Networks business unit will support operators’ strategies around cost and convergence, and will include mobile and fixed access, core and transmission networks, as well as next-generation IP networks. Former business units Systems, Access and Broadband networks will be integrated into Networks, along with the Power Modules and Cable units. Kurt Jofs, executive vice president and head of the Access business unit, has been tapped to lead the Networks unit’s 21,500 employees.
The Global Services unit will remain largely unchanged. Ericsson said the unit includes Professional Services as well as Network Rollout, and will continue supporting operators with cost efficiencies and technology evolution. Hans Vestberg, an executive vice president, will continue to lead the unit’s 23,000 employees.
“We are stronger than ever and the time is right to accelerate the pace of business development and establish a market-defining role in the integration of communications and media,” stated Svanberg. “We will leverage our position in mobile networks, services and transmission and expand our leadership in next generation converging IP-networks with a focus on multimedia applications and services. Multimedia is an area with obvious business opportunities and potentially a powerful driver for increasing network capacity and investments by operators.”
Ericsson said its re-vamped business units will begin operations in January.
