Telecom Lead India: Ericsson India posted 55 percent
decrease in revenue to SEK 1.4 billion in Q1 2012.
Among the regions, India showed the worst performance for
Ericsson.
According to Ericsson, regulatory uncertainty continued
with Supreme Court ruling to revoke 122 2G licenses.
In Q1 2011, Networks sales were positively impacted by
initial 3G rollouts. Operators have a strong focus on cost competitiveness,
which has resulted in high interest in reducing their operating expenses. This
has generated a growing managed services business. Strong q-o-q growth in
support solutions is due to Telcordia consolidation.
The global revenue of Ericsson was SEK 51 billion in Q1
2012, down 4 percent. Net income increased 116 percent to 8.95 billion kronor
($1.33 billion).
Ericsson said Indian income impacted by the uncertain
regulatory environment and declined y-o-y.
For Ericsson, OSS was flat and BSS had a slow quarter,
mainly related to a weaker development in India.
Total number of employees at the end of the quarter
increased to 108,551 (104,525). The total net addition is mainly related to the consolidation of
Telcordia and expansion in the global service center in India.
Sales of high-performance mobile broadband developed
well in North America, Japan and Korea, while other regions such as Europe including
Russia, parts of Middle East and India were weaker,” said Hans Vestberg, president and CEO of
Ericsson.
CDMA continued its expected decline in the transition to
LTE. Our services business showed continued momentum where especially Professional Services
developed favorably. Support Solutions (former Multimedia) increased organic sales,”
Vestberg added.
In the quarter, global business trends from H2 2011
prevailed with cautious operator spending in regions with macro-economic or
political uncertainty. q-o-q sales were impacted by seasonality. Sales in CDMA
continued to decline and decreased -40 percent y-o-y.
Demand for HSPA and LTE was good in the quarter,
following the increased focus on network performance, especially in North
America. Russia continued its slower development from H211.
