Ericsson Plans $1B Investment in China
From Bloomberg: Ericsson to Invest $1 Bln in China Over Five Years
"Ericsson AB, the world's largest mobile-phone network maker, plans to invest $1 billion on manufacturing and research in China in the next five years to take advantage of lower costs and meet demand for high-speed mobile phone services.
Chief Executive Carl-Henric Svanberg, 53, told reporters today in Shanghai that the investment will allow Ericsson to win a 33 percent market share for equipment that allows faster downloads of movies and games on handsets. He said China will spend $10 billion to $12 billion on such third-generation networks within three years of issuing licenses in early 2006.
Ericsson and world No. 2 Nokia Oyj are relying on demand for 3G networks to spur orders next year and maintain their market share over Chinese rivals such as ZTE Corp. and Huawei Technologies Co. that are able to offer lower prices. Stockholm- based Ericsson expects China to issue three 3G licenses."
"``China is still the market with the largest potential,'' Svanberg told reporters. ``It adds about five million mobile- phone users a month.``''
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