* airtel�s world class 3G network in Delhi and the National Capital Region (NCR) to serve 7.6 million customers deployed in only 5 months
* Aims to deliver outstanding experience for airtel 3G customers with speeds up to 21 Mbps in indoor environments as well
* To provide enhanced mobile broadband services such as high-speed internet access, as well as TV & video services
Ericsson announced it has deployed the latest core and radio technology to provide an advanced and state-of-the-art network infrastructure supporting the launch of airtel 3G services in Delhi and the National Capital Region. With this world class network deployed under the expertise of Ericsson in only 5 months, Bharti airtel will be able to serve 7.6 million customers in Delhi and the National Capital Region. This is one of the most robust 3G network setups rolled out by Ericsson in India to date where airtel 3G services in Delhi will have a comprehensive presence, delivering speeds up to 21 Mbps even in indoor environments.
Ericsson, the largest network supplier to Bharti airtel, is supporting them by launching a 3G network based on WCDMA/HSPA technology across 8 circles including services like network rollout, network design, network integration and training. The network comprises more than 1800 radio base stations based on Ericsson�s latest multi-standard radio access portfolio, RBS 6000, and the latest core technology, which will drastically boost the capacity of the network and evolve it into an IP network.
Atul Bindal, President � Mobile Services, Bharti airtel says: "Mobile broadband will not only revolutionize the internet experience in India but will also fuel the growth of trade and commerce, improve access to education and healthcare and help reduce the overall digital divide. We see the launch of 3G services as the logical next step to the evolution of mobile communications in India. With the mobile phone fast emerging as the primary device for accessing a variety of data services, we believe that strong network capabilities will play a crucial role in delivering a strong and sustained 3G experience for today�s discerning customer. Our attractive service offerings and compelling price points clubbed with Ericsson�s long standing expertise in networks gives us the confidence to dive into our 3G foray.�
Gowton Achaibar, Head of Region, Ericsson India, says: �We are excited to bring this new opportunity to the Indian telecom market. Our long standing association with Bharti has reached a new level today with the introduction of data based services. Thanks to our close collaboration with Bharti, we have successfully rolled out this comprehensive and complex network in a very short time.�
Ericsson estimates the mobile broadband customers will hit the one billion mark in 2011. The greatest number of customers, around 400 million, is expected to be concentrated in the Asia Pacific region. By 2016, the number of mobile broadband customers will be close to 5 billion, with 95 percent on HSPA, CDMA and LTE networks.
An Ericsson Consumer Insight Study on consumers� connectivity needs reveals that in India, the internet is increasingly becoming a part of the everyday life of the urban consumer. Almost 40 percent of urban internet users are accessing the internet daily; a significant proportion of these also access the internet through their mobile phone.
The multi standard radio base station RBS 6000 (deployed as a part of the contract) substantially reduces the power consumption hence reducing the operational expenditure for Bharti, saving cost and reducing the long term environmental impact. Bharti airtel 3G services in India were first launched in the south. This was rapidly followed by successful airtel 3G launches in Jaipur and Delhi including the National Capital Region.
Showing posts with label Ericsson. Show all posts
Showing posts with label Ericsson. Show all posts
Saturday, March 12, 2011
Pensioners prove how mobile phones and connectivity transform the lives of the elderly
One of the greatest benefits of connectivity is that it doesn�t discriminate. In the past, generational changes could almost be defined by who used different technologies. It separated teenagers from parents, and parents from grandparents. Connectivity is different. It benefits senior members of society as much as digital natives, as the cases of two Irish pensioners prove.
It�s 14.00 in Dublin and Marie O�Gorman is pouring tea for guests in the kitchen of her house. She recounts how one of her granddaughters recently showed a classmate a text message she had received at school, composed with such textese as: "Gr8, CU later."
Marie O�Gorman
When the granddaughter explained that the sender was her 75-year-old grandmother, her classmate was impressed. Marie says, "Your nana�s cool" was the girl�s assessment.
A retired dressmaker, Marie exchanges texts and e-mails daily with family around the world. Her laptop, complete with mobile broadband dongle, is a constant companion, as is her mobile phone. "I do a lot of texting; you can�t keep me from it," she says as she counts more than 40 regular contacts in her phone.
Marie�s digital revolution started five years ago when her daughter and son-in-law moved to Armenia with their four children. "A few people told me about the internet," she says. "I don�t believe in saying �I can�t manage it,� so I got an old computer and I took a class at the local college."
She was soon attaching photographs to e-mails and downloading pictures from her children, grandchildren, nieces and nephews in Australia, Africa, the UK and the US.
"I have a medical condition that prevents me from flying, so I�ll never go to America, Armenia or Australia," she says. "But with my mobile, I can just text or phone my daughter, and instantly we�re together."
Marie also uses web-based video calling, as well as researching her family genealogy and paying bills, such as automobile tax and insurance, online. As a volunteer teacher for a children�s knitting class, she also uses the web to search for simple patterns for her students. "This is living," she says. "The internet is really a marvelous idea, isn�t it? I mean, it�s a whole new world."
Fellow Dubliner Mabel Gargan also says that web communication has changed her life.
An 88-year-old member of Mensa, the international high-IQ society, Mabel starts her mornings at her desktop computer, checking an online news channel for the latest updates and commentaries, before printing out the daily crossword. "I�m very much into quizzes � either solving them or making my own," she says. "We take turns making them in Mensa, so I use Google a lot."
Mabel uses e-mail and her mobile phone daily to keep in touch with friends old and new, from Mensa, Rotary International and her local drama club. She devotes a substantial amount of time online to her grandchildren in the US, Australia and Ireland. Recently, she started using web-based video calling to talk to her granddaughter in San Francisco.
"I have another granddaughter in Athlone (Ireland) who keeps in touch with me via text very often � texting is a big part of her life," Mabel says. "I wouldn�t be in touch with my grandchildren half as much without a computer. They wouldn�t know where to find a writing pad now. I don�t suppose I would either."
Mable can�t imagine a day without connectivity now. "I can keep in touch with people who I�d otherwise have been writing longhand letters to, and they probably wouldn�t reply," she says. "With my family, it�s nice to know I can contact them at any time. They know what�s going on in my life and I know what�s going on in theirs."
It�s 14.00 in Dublin and Marie O�Gorman is pouring tea for guests in the kitchen of her house. She recounts how one of her granddaughters recently showed a classmate a text message she had received at school, composed with such textese as: "Gr8, CU later."
Marie O�Gorman
When the granddaughter explained that the sender was her 75-year-old grandmother, her classmate was impressed. Marie says, "Your nana�s cool" was the girl�s assessment.
A retired dressmaker, Marie exchanges texts and e-mails daily with family around the world. Her laptop, complete with mobile broadband dongle, is a constant companion, as is her mobile phone. "I do a lot of texting; you can�t keep me from it," she says as she counts more than 40 regular contacts in her phone.
Marie�s digital revolution started five years ago when her daughter and son-in-law moved to Armenia with their four children. "A few people told me about the internet," she says. "I don�t believe in saying �I can�t manage it,� so I got an old computer and I took a class at the local college."
She was soon attaching photographs to e-mails and downloading pictures from her children, grandchildren, nieces and nephews in Australia, Africa, the UK and the US.
"I have a medical condition that prevents me from flying, so I�ll never go to America, Armenia or Australia," she says. "But with my mobile, I can just text or phone my daughter, and instantly we�re together."
Marie also uses web-based video calling, as well as researching her family genealogy and paying bills, such as automobile tax and insurance, online. As a volunteer teacher for a children�s knitting class, she also uses the web to search for simple patterns for her students. "This is living," she says. "The internet is really a marvelous idea, isn�t it? I mean, it�s a whole new world."
Fellow Dubliner Mabel Gargan also says that web communication has changed her life.
An 88-year-old member of Mensa, the international high-IQ society, Mabel starts her mornings at her desktop computer, checking an online news channel for the latest updates and commentaries, before printing out the daily crossword. "I�m very much into quizzes � either solving them or making my own," she says. "We take turns making them in Mensa, so I use Google a lot."
Mabel uses e-mail and her mobile phone daily to keep in touch with friends old and new, from Mensa, Rotary International and her local drama club. She devotes a substantial amount of time online to her grandchildren in the US, Australia and Ireland. Recently, she started using web-based video calling to talk to her granddaughter in San Francisco.
"I have another granddaughter in Athlone (Ireland) who keeps in touch with me via text very often � texting is a big part of her life," Mabel says. "I wouldn�t be in touch with my grandchildren half as much without a computer. They wouldn�t know where to find a writing pad now. I don�t suppose I would either."
Mable can�t imagine a day without connectivity now. "I can keep in touch with people who I�d otherwise have been writing longhand letters to, and they probably wouldn�t reply," she says. "With my family, it�s nice to know I can contact them at any time. They know what�s going on in my life and I know what�s going on in theirs."
Ericsson's annual report now published
*
Ericsson's (NASDAQ:ERIC) annual report 2010 is now available on www.ericsson.com under www.ericsson.com/thecompany/investors/financial-reports
Notes to editors:
Our multimedia content is available at the broadcast room: www.ericsson.com/broadcast_room
Ericsson's (NASDAQ:ERIC) annual report 2010 is now available on www.ericsson.com under www.ericsson.com/thecompany/investors/financial-reports
Notes to editors:
Our multimedia content is available at the broadcast room: www.ericsson.com/broadcast_room
mWomen: how mobile communication empowers women
To mark International Women�s Day 2011, today March 8, we look at how the mobile phone can empower women in developing countries through the GSMA mWomen Programme. Trina DasGupta, the Programme Director, says the initiative is giving women a voice and opening doors to learning, entrepreneurship and financial independence.
The GSMA mWomen Programme was formed following a joint research project carried out by the GSMA and the Cherie Blair Foundation for Women, covering access to, and use of, mobile phones by women in developing countries. Ericsson became involved through the Connect To Learn program. DasGupta says the results showed how much women were missing out owing to their lack of access to mobile phones.
That research was presented at the Mobile World Congress (MWC) in Barcelona, Spain, in 2010. DasGupta also attended this year�s MWC in February, chairing a seminar on the initiative. She repeated the message that about USD 13 billion in missed business opportunities had been identified as a result of the estimated 300 million women who are missing out.
She says mobile access has direct benefits in terms of personal safety, getting access to education and health care, as well as providing a potential new means of financial independence through entrepreneurship. DasGupta says women are more likely to generate income for their businesses if they have access to a mobile phone.
Ericsson is leading the education workstream of the mWomen program to bring operators from around the world into the Connect To Learn initiative.
Elaine Weidman, Vice President Sustainability and Corporate Responsibility at Ericsson says: "When a girl is educated, she can earn up to 25 percent more income, 90 percent of which she�ll invest back into her family and community.
"We strongly support GSMA�s mWomen Program because we understand the importance and impact it can make in women�s lives, the lives of their families and communities."
More than 20 operators in 115 countries are taking part in the GSMA mWomen Programme. DasGupta says the initiative aims to involve 150 million women within three years and reduce the gender gap in mobile-phone ownership by 50 percent.
She says the initiative will also bring women in developing countries into the networked society.
"A networked society to me means that women who have never previously had access to anything now have access," she says. "Being networked means empowerment in your hands."
The GSMA mWomen Programme was formed following a joint research project carried out by the GSMA and the Cherie Blair Foundation for Women, covering access to, and use of, mobile phones by women in developing countries. Ericsson became involved through the Connect To Learn program. DasGupta says the results showed how much women were missing out owing to their lack of access to mobile phones.
That research was presented at the Mobile World Congress (MWC) in Barcelona, Spain, in 2010. DasGupta also attended this year�s MWC in February, chairing a seminar on the initiative. She repeated the message that about USD 13 billion in missed business opportunities had been identified as a result of the estimated 300 million women who are missing out.
She says mobile access has direct benefits in terms of personal safety, getting access to education and health care, as well as providing a potential new means of financial independence through entrepreneurship. DasGupta says women are more likely to generate income for their businesses if they have access to a mobile phone.
Ericsson is leading the education workstream of the mWomen program to bring operators from around the world into the Connect To Learn initiative.
Elaine Weidman, Vice President Sustainability and Corporate Responsibility at Ericsson says: "When a girl is educated, she can earn up to 25 percent more income, 90 percent of which she�ll invest back into her family and community.
"We strongly support GSMA�s mWomen Program because we understand the importance and impact it can make in women�s lives, the lives of their families and communities."
More than 20 operators in 115 countries are taking part in the GSMA mWomen Programme. DasGupta says the initiative aims to involve 150 million women within three years and reduce the gender gap in mobile-phone ownership by 50 percent.
She says the initiative will also bring women in developing countries into the networked society.
"A networked society to me means that women who have never previously had access to anything now have access," she says. "Being networked means empowerment in your hands."
Ericsson leads the evolution of news and sports gathering
* Launch of Voyager II � Ericsson�s fifth generation Digital Satellite News Gathering (DSNG) solution
* Enables high quality real-time video in multiple formats
* Enhanced consumer experience for live event TV
Ever since the launch of the first 24 hour television news service over 30 years ago, news channels have played an increasingly important role in the daily viewing habits of TV consumers, bringing round the clock news from across the globe. To meet growing consumer demand for greater quality coverage, such as High Definition news services, Ericsson (NASDAQ: ERIC) has developed Voyager II, the most flexible and scalable news gathering product on the market. Ericsson ConsumerLab studies, which focus on how consumers act and what they think about telecom and TV products and services, show that 93 percent of people are still watching scheduled �linear� broadcast TV every week, of which news and sport play a central role.
"In a dynamic and fast moving market, future DSNG solutions must reliably deliver high quality video in multiple formats over all modern transmission technologies and networks," said Giles Wilson, Head of Technology, Ericsson Solution Area TV. "It is vital that news services and organizations meet the needs and desires of today�s consumers to watch coverage in the highest possible quality, and also ensure they are equipped to provide the next generation experience, such as 3D coverage. Voyager II delivers exactly that, today."
Voyager II is Ericsson�s fifth generation DSNG product. Built upon a new and revolutionary hot-swappable 1RU chassis with color input confidence monitoring, it features a fully redesigned intuitive front panel user interface based on industry feedback. It is the first solution to unleash the power of MPEG-4 AVC 4:2:2 encoding with 10-bit precision at up to 1080p50/60 resolutions to the DSNG market. Offering the widest range of video processing options, it allows users to scale their event coverage from SD to HD and even multichannel and 3D, delivered across a multitude of satellite and terrestrial networks.
Voyager II extends the Ericsson compression team�s history of firsts in the market. In 1995, the team developed the industry�s first MPEG-2 DSNG solution, enabling news organizations to send digital video back from the field and use less satellite bandwidth. The team continued this innovation in 1998 with the first HD MPEG-2 demonstration � making the highest picture quality affordable for satellite and cable operators, and in 2004 launched the first MPEG-4 AVC HD encoder � making the business model work for HDTV worldwide.
* Enables high quality real-time video in multiple formats
* Enhanced consumer experience for live event TV
Ever since the launch of the first 24 hour television news service over 30 years ago, news channels have played an increasingly important role in the daily viewing habits of TV consumers, bringing round the clock news from across the globe. To meet growing consumer demand for greater quality coverage, such as High Definition news services, Ericsson (NASDAQ: ERIC) has developed Voyager II, the most flexible and scalable news gathering product on the market. Ericsson ConsumerLab studies, which focus on how consumers act and what they think about telecom and TV products and services, show that 93 percent of people are still watching scheduled �linear� broadcast TV every week, of which news and sport play a central role.
"In a dynamic and fast moving market, future DSNG solutions must reliably deliver high quality video in multiple formats over all modern transmission technologies and networks," said Giles Wilson, Head of Technology, Ericsson Solution Area TV. "It is vital that news services and organizations meet the needs and desires of today�s consumers to watch coverage in the highest possible quality, and also ensure they are equipped to provide the next generation experience, such as 3D coverage. Voyager II delivers exactly that, today."
Voyager II is Ericsson�s fifth generation DSNG product. Built upon a new and revolutionary hot-swappable 1RU chassis with color input confidence monitoring, it features a fully redesigned intuitive front panel user interface based on industry feedback. It is the first solution to unleash the power of MPEG-4 AVC 4:2:2 encoding with 10-bit precision at up to 1080p50/60 resolutions to the DSNG market. Offering the widest range of video processing options, it allows users to scale their event coverage from SD to HD and even multichannel and 3D, delivered across a multitude of satellite and terrestrial networks.
Voyager II extends the Ericsson compression team�s history of firsts in the market. In 1995, the team developed the industry�s first MPEG-2 DSNG solution, enabling news organizations to send digital video back from the field and use less satellite bandwidth. The team continued this innovation in 1998 with the first HD MPEG-2 demonstration � making the highest picture quality affordable for satellite and cable operators, and in 2004 launched the first MPEG-4 AVC HD encoder � making the business model work for HDTV worldwide.
Live events and more in HD for Slovenian viewers
* Consumers experience greater picture and audio quality than ever before
* Viewer taken closer to the action with HD live events
* Increased access to HD for Slovenian TV households
Ericsson (NASDAQ: ERIC) has supplied Radiotelevizija Slovenija (RTV Slovenia), the national public broadcaster of Slovenia, with a solution for the transmission of high definition programming and events from around the country to its central studio in Ljubljana. RTV Slovenia�s TV services, which were launched in 1958, are available across the country on terrestrial, cable, satellite and IPTV networks. RTV Slovenia�s began HD broadcasts in February 2010 with coverage of the Winter Olympic Games in Vancouver.
"As the public service broadcaster for Slovenia, we have a duty to provide the highest quality programming and content to the viewing public as possible, and our commitment to high definition TV services is central to that," said Matja� Fajdiga, Head of TV engineering, RTV Slovenia. "This project has enabled us to benefit from the experience and expertise of the Ericsson team in order to bring TV services in Slovenia in line with the quality of many others around the world."
The deployment brings more HD content to Slovenian viewers from across the country, meaning that national interest events and programming can be enjoyed at a greater picture and audio quality than ever before. RTV Slovenia�s services consist of three channels � TV Slovenija 1-3 � as well as TV Slovenija HD. Ericsson has supplied RTV Slovenia with a solution for transmitting and receiving the content, enabling a wider roll-out of HD services that provide viewers with an enhanced television experience.services that provide viewers with an enhanced television experience.
"Given the bandwidth challenges faced by broadcasters when deploying HD services, efficiency is a more important consideration than ever before," said Parvaiz Ahsan, Head of EMEIA, Solution Area TV, Ericsson. "This is an exciting development for Slovenian TV viewers. We�re pleased to supply RTV Slovenia with the high quality, reliable solutions it needs to give consumers the content they want to watch, at levels of audio and visual excellence like never before."
* Viewer taken closer to the action with HD live events
* Increased access to HD for Slovenian TV households
Ericsson (NASDAQ: ERIC) has supplied Radiotelevizija Slovenija (RTV Slovenia), the national public broadcaster of Slovenia, with a solution for the transmission of high definition programming and events from around the country to its central studio in Ljubljana. RTV Slovenia�s TV services, which were launched in 1958, are available across the country on terrestrial, cable, satellite and IPTV networks. RTV Slovenia�s began HD broadcasts in February 2010 with coverage of the Winter Olympic Games in Vancouver.
"As the public service broadcaster for Slovenia, we have a duty to provide the highest quality programming and content to the viewing public as possible, and our commitment to high definition TV services is central to that," said Matja� Fajdiga, Head of TV engineering, RTV Slovenia. "This project has enabled us to benefit from the experience and expertise of the Ericsson team in order to bring TV services in Slovenia in line with the quality of many others around the world."
The deployment brings more HD content to Slovenian viewers from across the country, meaning that national interest events and programming can be enjoyed at a greater picture and audio quality than ever before. RTV Slovenia�s services consist of three channels � TV Slovenija 1-3 � as well as TV Slovenija HD. Ericsson has supplied RTV Slovenia with a solution for transmitting and receiving the content, enabling a wider roll-out of HD services that provide viewers with an enhanced television experience.services that provide viewers with an enhanced television experience.
"Given the bandwidth challenges faced by broadcasters when deploying HD services, efficiency is a more important consideration than ever before," said Parvaiz Ahsan, Head of EMEIA, Solution Area TV, Ericsson. "This is an exciting development for Slovenian TV viewers. We�re pleased to supply RTV Slovenia with the high quality, reliable solutions it needs to give consumers the content they want to watch, at levels of audio and visual excellence like never before."
Welcome to Telefonaktiebolaget LM Ericsson's Annual General Meeting
The Nomination Committee proposes
*
Leif Johansson as new Chairman of the Board (item 9.3)
*
Jacob Wallenberg as new Board member (item 9.3)
*
Increase of the individual Board fee as well as the fee for work in the Finance- and Remuneration Committees of the Board (item 9.2)
The Board proposes
* A dividend of SEK 2,25 per share (item 8.3)
* Unchanged guidelines for remuneration to senior management (item 10)
* Continued Long Term Variable Remuneration Program with new performance targets for the executive plan
* Transfer of treasury stock in relation to previously resolved remuneration programs (item 12)
* Amendment in the description of the objects of the company in the Articles of Association (item 13)
Telefonaktiebolaget LM Ericsson's shareholders are invited to participate in the Annual General Meeting of Shareholders to be held on Wednesday, April 13, 2011 at 3.00 p.m. at the Annex, Ericsson Globe, Globentorget, Stockholm. Registration to the Meeting starts at 1.30 p.m.
Registration and notice of attendance
Shareholders who wish to attend the Meeting must
* be recorded in the share register kept by Euroclear Sweden AB, the Swedish securities registry, on Thursday, April 7, 2011; and
* give notice of attendance to the Company at the latest on Thursday, April 7, 2011. Notice of attendance can be given on Ericsson's website www.ericsson.com, by telephone +46 (0)8 402 90 54 on weekdays between 10 a.m. and 4 p.m. or by fax +46 (0)8 402 92 56 with reference "Ericsson's AGM".
Notice may also be given in writing to:
Telefonaktiebolaget LM Ericsson
General Meeting of Shareholders
Box 7835
SE-103 98 Stockholm
Sweden
When giving notice of attendance, please state name, date of birth, address, telephone no. and number of attending assistants, if any.
The Meeting will be conducted in Swedish and simultaneously interpreted into English.
Shares registered in the name of a nominee
In addition to giving notice of attendance, shareholders having their shares registered in the name of a nominee, must request the nominee to temporarily enter the shareholder into the share register as per Thursday, April 7, 2011, in order to be entitled to attend the Meeting. The shareholder should inform the nominee to that effect well before that day.
Proxy
Shareholders represented by proxy shall issue a power of attorney for the representative. A power of attorney issued by a legal entity must be accompanied by a copy of the entity's certificate of registration (should no such certificate exist, a corresponding document of authority must be submitted). In order to facilitate the registration at the Meeting, the power of attorney in the original, certificate of registration and other documents of authority should be sent to the Company in advance at the address above for receipt by Tuesday, April 12, 2011. Forms of Power of Attorney in Swedish and English are available on Ericsson's website, www.ericsson.com.
Agenda
1 Election of the Chairman of the Meeting.
2 Preparation and approval of the voting list.
3 Approval of the agenda of the Meeting.
4 Determination whether the Meeting has been properly convened.
5 Election of two persons approving the minutes.
6 Presentation of the annual report, the auditors' report, the consolidated accounts, the auditors' report on the consolidated accounts and the auditors' presentation of the audit work during 2010.
7 The President's speech and questions by the shareholders to the Board of Directors and the management.
8 Resolutions with respect to
8.1 adoption of the income statement and the balance sheet, the consoli�dated income statement and the consolidated balance sheet;
8.2 discharge of liability for the members of the Board of Directors and the President;
8.3 the appropriation of the profit in accordance with the approved balance sheet and determination of the record date for dividend.
9 Presentation of the proposals of the Nomination Committee, election of the Board of Directors etc.
9.1 Determination of the number of Board members and Deputies of the Board of Directors to be elected by the Meeting.
9.2 Determination of the fees payable to non-employed members of the Board of Directors elected by the Meeting and non-employed members of the Committees of the Board of Directors elected by the Meeting.
9.3 Election of the Chairman of the Board of Directors, other Board members and Deputies of the Board of Directors.
9.4 Resolution on the procedure on appointment of the members of the Nomination Committee and determination of the assignment of the Committee.
9.5 Determination of the fees payable to the members of the Nomination Committee.
9.6 Determination of the fees payable to the Auditor.
9.7 Election of Auditor.
10 Resolution on the guidelines for remuneration to senior management.
11 Long-Term Variable Remuneration Program 2011.
11.1 Resolution on implementation of the Stock Purchase Plan.
11.2 Resolution on transfer of treasury stock for the Stock Purchase Plan.
11.3 Resolution on Equity Swap Agreement in relation to the Stock Purchase Plan.
11.4 Resolution on implementation of the Key Contributor Retention Plan.
11.5 Resolution on transfer of treasury stock for the Key Contributor Retention Plan.
11.6 Resolution on Equity Swap Agreement in relation to the Key Contributor Retention Plan.
11.7 Resolution on implementation of the Executive Performance Stock Plan.
11.8 Resolution on transfer of treasury stock for the Executive Performance Stock Plan.
11.9 Resolution on Equity Swap Agreement in relation to the Executive Performance Stock Plan.
12 Resolution on transfer of treasury stock in relation to the resolutions on the Long-Term Variable Remuneration Programs 2007, 2008, 2009 and 2010.
13 Resolution on amendment of the Articles of Association.
14 Resolution on Einar Hellbom's proposal for the Meeting to delegate to the Board of Directors to review how shares are to be given equal voting rights and to present a proposal to that effect at the next Annual General Meeting.
15 Close of the Meeting.
Item 1 Chairman of the Meeting
The Nomination Committee proposes the Chairman of the Board of Directors,
Michael Treschow, be elected Chairman of the Meeting.
Item 8.3 Dividend and record date
The Board of Directors proposes a dividend of SEK 2.25 per share and Monday, April 18, 2011, as record date for dividend. Assuming this date will be the record day, Euroclear Sweden AB is expected to disburse dividends on Thursday, April 21, 2010.
Item 9.1-9.3 Number of Board members and Deputies, Directors' fees, election of the Chairman and other members of the Board of Directors
The Nomination Committee, appointed in accordance with the procedure that was re�solved by the Annual General Meeting 2010, is composed of the Chairman of the Committee, Jacob Wallenberg, Investor AB, Carl-Olof By, AB Industriv�rden, Svenska Handelsbankens Pensionsstiftelse and Pensionskassan SHB F�rs�kringsf�rening, Caroline af Ugglas, Livf�rs�kringsaktiebolaget Skandia, Marianne Nilsson, Swedbank Robur Fonder and Michael Treschow, Chairman of the Board of Directors. The Nomination Committee proposes:
9.1 the number of Board members to be elected by the Meeting shall remain twelve and no Deputy Directors be elected;
9.2 the fees to the non-employed Board members and to the non-employed members of the Committees to the Board of Directors elected by the Meeting be paid as follows:
*
SEK 3,750,000 to the Chairman of the Board of Directors (unchanged);
*
SEK 825,000 each to the other Board members (previously SEK 750,000);
*
SEK 350,000 to the Chairman of the Audit Committee (unchanged);
*
SEK 250,000 each to the other members of the Audit Committee (unchanged);
*
SEK 200,000 each to the Chairmen of the Finance and the Remuneration Committee (previously SEK 125,000); and
*
SEK 175,000 each to the other members of the Finance and the Remuneration Committee (previously SEK 125,000).
Fees in the form of synthetic shares
The Nomination Committee proposes the Directors should be offered, on unchanged terms, the possibility to receive part of the fees in respect of their Board assignment (however, not in respect of committee work) in the form of synthetic shares. A synthetic share signifies a right to receive future payment of an amount corresponding to the market price of a share of series B in the Company on NASDAQ OMX Stockholm at the time of payment. The following principal terms and conditions shall apply.
A nominated Director shall have the possibility of choosing to receive the fee in respect of his or her Board assignment, according to the following four alternatives:
*
25 percent in cash - 75 percent in synthetic shares;
*
50 percent in cash - 50 percent in synthetic shares;
*
75 percent in cash - 25 percent in synthetic shares; and
*
100 percent in cash.
The number of synthetic shares allocated to the Director shall be based on a volume weighted average of the market price of shares of series B on NASDAQ OMX Stockholm during the five trading days immediately following the publication of the Company's interim re�port for the first quarter of 2011. The synthetic shares are vested during the term of office, with 25 percent per quarter of the year.
The synthetic shares entail a right to receive payment, following the publication of Ericsson's year-end financial statement in 2016, of a cash amount per synthetic share corresponding to the market price of shares of series B in the Company at the time of payment.
Dividend in respect of shares of series B in the Company, which the General Meeting of Shareholders has resolved on during the holding period, shall be disbursed at the same time as the cash amount.
Should the Director's assignment to the Board of Directors come to an end not later than during the third calendar year after the year in which the General Meeting of Shareholders re�solved on allocation of the synthetic shares, payment may take place the year after the assignment came to an end.
The number of synthetic shares may be subject to recalculation in the event of bonus issues, split, rights issues and similar measures, under the terms and conditions of the synthetic shares.
The intention is that the Company's future commitment to pay with regard to the synthetic shares, as set out above, should be hedged by the Company, either through repurchased own shares which are sold on the market in connection with payments to the Directors or through a hedging agreement with a bank. Due to the hedging measures, the financial difference for the Company, should all Directors receive part of their fees in the form of synthetic shares compared with the fees being paid in cash only, is assessed to be very limited.
Item 9.3 Directors of the Board elected by the Meeting
Chairman of the Board of Directors
The Nomination Committee proposes Leif Johansson be elected new Chairman of the Board of Directors (Michael Treschow, presently Chairman of the Board, has declined re-election).
Other members of the Board of Directors
The Nomination Committee proposes re-election of Roxanne S. Austin, Sir Peter L. Bonfield, B�rje Ekholm, Ulf J. Johansson, Sverker Martin-L�f, Nancy McKinstry, Anders Nyr�n, Carl-Henric Svanberg, Hans Vestberg and Michelangelo Volpi and election of Jacob Wallenberg as new Board member (Marcus Wallenberg has declined re-election).
Leif Johansson
Born 1951. M. Sc. Engineering, Chalmers University of Technology.
Board Chairman: European Round Table of Industrialists.
Board member: Bristol-Myers Squibb Company, AB Volvo, Svenska Cellulosa Aktiebolaget SCA and Svenskt N�ringsliv.
Holdings in Ericsson: 2,933 Class B shares.
Principal work experience and other information: Since 1997, President and CEO of AB Volvo. Before this Leif Johansson was Executive Vice President in Electrolux (1988), CEO (1991) and President and CEO of Electrolux 1994-1997. Leif Johansson is a member of the Royal Swedish Academy of Engineering Sciences.
Jacob Wallenberg
Born 1956. B.Sc. Economics and M.B.A., Wharton School, University of Pennsylvania, Reserve Officer, Swedish Navy.
Board Chairman: Investor AB.
Deputy Board Chairman: Atlas Copco AB, SAS AB and SEB Skandinaviska Enskilda Banken AB (SEB).
Board member: ABB Ltd., The Coca-Cola Company, The Knut and Alice Wallenberg Foundation and Stockholm School of Economics.
Holdings in Ericsson: None.
Principal work experience and other information: Chairman of the Board of Investor AB since 2005. Jacob Wallenberg has extensive experience in banking and finance, e.g. from commercial banks JP Morgan, New York and SEB. He was appointed President and CEO of SEB in 1997 and in 1998 as Chairman of SEB's Board of Directors. During 1990-1993 he was Executive Vice President and CFO of Investor. Jacob Wallenberg is the Chairman of IBLAC (Mayor of Shanghai's International Business Leaders Advisory Council) and is a member of The European Round Table of Industrialists.
Item 9.4 Procedure on appointment of the Nomination Committee and determination of the assignment of the Committee
The Nomination Committee proposes a procedure on appointment of the Nomination Committee, in substance as follows:
The Company shall have a Nomination Committee of no less than five members. One member shall be the chairman of the Board of Directors.
Based on the shareholding statistics the Company receives from Euroclear Sweden AB as per the last bank day of the month in which the Annual General Meeting is held, the Nomination Committee shall, without unnecessary delay, identify the four largest shareholders by voting power of the Company.
As soon as reasonably feasible, the Nomination Committee shall, in a suitable manner, contact the identified four largest shareholders and request them, within reasonable time considering the circumstances, however not exceeding 30 days, to provide in writing to the Nomination Committee the name of the person the shareholder wish to appoint member of the Nomination Committee.
The chairman of the Nomination Committee shall be the member that represents the largest shareholder(s) by voting power, provided the Nomination Committee does not unanimously resolve to appoint another member, appointed by a shareholder, chairman of the Nomination Committee.
In case a shareholder considers its shareholding in the Company is of such significance that it justifies a participation in the Nomination Committee, the shareholder may inform in writing the Nomination Committee thereof and in connection hereto adequately verify its shareholding. Upon receipt of such a request no later than December 31, and provided the Nomination Committee considers the reported shareholding be adequately verified, the Nomination Committee shall confirm this to the shareholder, who will then be entitled to appoint a supplemental member of the Nomination Committee. In case the Nomination Committee receives a notification from a shareholder past the date of December 31, no action is required to be taken.
The assignment covers to provide proposals for
*
chairman at the Annual General Meeting;
*
chairman of the Board of Directors and other members of the Board of Directors appointed by the Annual General Meeting;
*
fees payable to non-employed members of the Board of Directors; and
*
fees payable to the auditors as well as, when applicable, election of auditors.
Henceforth, no remuneration shall be paid to the members of the Nomination Committee. However, the Company shall bear the reasonable expenses reasonably related to the assignment of the Nomination Committee.
Item 9.5 Fees payable to the members of the Nomination Committee
The Nomination Committee proposes no remuneration be paid to the Nomination Committee members.
Item 9.6 Fees payable to the Auditor
The Nomination Committee proposes, like previous years, the Auditor fees be paid against approved account.
Item 9.7 Election of Auditor
The Nomination Committee proposes PricewaterhouseCoopers be appointed Auditor for the period as of the end of the Annual General Meeting 2011 until the end of the Annual General Meeting 2012.
Item 10 Guidelines for remuneration to senior management
The Board of Directors proposes the Annual General Meeting resolves on the following guidelines for remuneration and other employment terms for the senior management for the period up to the 2012 Annual General Meeting. The guidelines proposed do not comprise any material changes compared to the principles resolved by the 2010 Annual General Meeting.
Details of how we deliver on our principles and policy, including information on previously decided long term variable remuneration that has not yet become due for payment, can be found in the Remuneration Report and in Note C29, "Information regarding Members of the Board of Directors, Management and Employees" in the annual report 2010.
2011 Remuneration Policy
Remuneration at Ericsson is based on the principles of performance, competitiveness and fairness. These principles and good practice in Sweden guide our policy to:
*
Attract and retain highly competent, performing and motivated people that have the ability, experience and skill to deliver on the Ericsson strategy.
*
Encourage behavior consistent with Ericsson's culture and core values of professionalism, respect and perseverance.
*
Ensure fairness in reward by delivering total remuneration that is appropriate but not excessive.
*
Ensure a total compensation mix of fixed and variable remuneration and benefits that reflects the Company's principles and is competitive where Ericsson competes for talent.
*
Encourage variable remuneration which, first, aligns employees with clear and relevant targets, second, reinforces performance and, third, enables flexible remuneration costs.
*
Ensure that all variable remuneration plans have maximum award and vesting limits.
*
Encourage employees to deliver sustained performance and build up a personal shareholding in Ericsson, aligning the interests of shareholders and employees.
*
Communicate clearly to both employees and shareholders how Ericsson translates remuneration principles and policy into practice.
Group Management
For Group Management consisting of the Executive Leadership Team, including the President and CEO, in the following referred to as the "Group Management", total remuneration consists of fixed salary, short- and long-term variable remuneration, pension and other benefits.
Furthermore, the following guidelines apply for Group Management:
*
Variable remuneration is through cash and stock-based programs awarded against specific business targets derived from the long term business plan approved by the Board of Directors. Targets may include financial targets at either corporate or unit level, operational targets, employee motivation targets and customer satisfaction targets.
*
With the current composition of Group Management, the Company's cost during 2011 for the variable remuneration of Group Management can, at a constant share price, amount to between 0 and 150 percent of the aggregate fixed salary cost, all excluding social security costs.
*
All benefits, including pension benefits, follow the competitive practice in the home country taking total compensation into account. The retirement age is normally 60 to 65 years of age.
*
By way of exception, additional arrangements can be made when deemed required. Such additional arrangement shall be limited in time and shall not exceed a period of 36 months and two times the remuneration that the individual concerned would have received had no additional arrangement been made.
*
The mutual notice period may be no more than six months. Upon termination of employment by the Company, severance pay amounting to a maximum of 18 months fixed salary is paid. Notice of termination given by the employee due to significant structural changes, or other events that in a determining manner affect the content of work or the condition for the position, is equated with notice of termination served by the Company.
Item 11.1-11.9 Long-Term Variable Remuneration Program 2011 (LTV 2011) including the Board of Directors' proposal for resolutions on implementation of an all employee Stock Purchase Plan, a Key Contributor Retention Plan and an Executive Performance Stock Plan and, under each plan respectively, transfer of treasury stock
Following the Board of Directors' annual evaluation of total remuneration and ongoing programs* ,it proposes to make only minor changes to the structure of Ericsson's Long-Term Variable Remuneration Program for 2011. The program is an integral part of the Company's remuneration strategy, in particular the Board of Directors wishes to encourage all employees to become and remain shareholders and the leadership to build significant equity holdings. However, following extensive evaluation of the program it is proposed that the Earnings per Share performance measure for the Executive Performance Stock Plan be replaced with the three measures of Net Sales Growth, Operating Income Growth and Cash Conversion to better reflect the business strategy and long term value creation of the Company, as described in the proposal below.
It is anticipated that the LTV 2011 will require up to 23.4 million shares, corresponding to a dilution of up to 0.73 percent of outstanding shares, at a cost between SEK 972 million and SEK 1,682 million unevenly distributed over the years 2011-2015.
* - (See more about the Board of Directors' evaluation in the Remuneration Report attached to the 2010 Annual Report)
Three plans
The LTV 2011 builds on a common platform, but consists of three separate plans.
The Stock Purchase Plan is an all employee plan and is designed to create an incen�tive for all employees to become shareholders. The aim is to secure commitment to long-term value creation throughout Ericsson.
The Key Contributor Retention Plan is part of Ericsson's talent strategy and is designed to ensure long term retention of top-talent with critical skills vital to Ericsson's future performance. Up to ten percent of the Company's employees are defined as "key contribu�tors", based on a rigorous selection process incorporating elements such as individ�ual performance, possession of critical skills and future poten�tial. The company monitors the selection process carefully and monitors nominations for bias of factors such as seniority, gender, age and frequency of award.
The Executive Performance Stock Plan is designed to encourage long-term value creation in alignment with share�holders' interests. The plan is offered to a defined group of senior managers, up to 0.5 percent of the total employee population. The aim is to attract, retain and motivate executives in a competitive market through performance-based share related incentives and to encourage the build-up of significant equity stakes.
There will be three performance criteria for the Executive Performance Stock Plan 2011:
* Up to one third of the award will vest if the compound annual growth rate of consolidated net sales is between 4 and 10 percent comparing 2013 financial results to 2010.
* Up to one third of the award will vest if the compound annual growth rate of consolidated operating income is between 5 and 15 percent comparing 2013 financial results to 2010.
* Up to one third of the award will vest if cash conversion is at or above 70 percent during each of the years 2011-2013 and vesting one ninth of the total award for each year the target is achieved.
Financing
The Board of Directors has considered different financing methods for transfer of shares to employees under the LTV 2011, such as transfer of treasury stock and an equity swap agree�ment with a third party.
The Company's current holding of treasury stock is sufficient for the carrying out of the LTV 2011. The Board of Directors considers the transfer of treasury stock as the most cost efficient and flexible method to transfer shares under the LTV 2011 and the main alterna�tive is that the financial exposure is secured by transfer of treasury stock.
Costs
The total effect on the income statement of the LTV 2011, including financing costs, is estimated to range between SEK 972 million and SEK 1,682 million unevenly distrib�uted over the years 2011-2015. The costs constitute less than three percent of Ericsson's total remuneration costs 2010, including social security fees, amounting to SEK 57 billion.
The calculations are based on assumptions of present participation rate in the Stock Purchase Plan and the Key Contributor Retention Plan and full participation in the Executive Performance Stock Plan, at maximum contribution levels.
Costs affecting the income statement, but not the cash flow
Compensation costs, corresponding to the value of matching shares transferred to employ�ees, are estimated to range between SEK 893 million and SEK 1,091 million, depend�ing on the fulfilment of the performance targets of the Executive Performance Stock Plan **.
The compensation costs are distributed over the LTV 2011 period, i.e. 2011-2015. Social security charges as a result of transfer of shares to employees depend on the performance against the Executive Performance Stock Plan targets and based on an assumed average share price at matching between SEK 30 and SEK 175, the costs are estimated to range between SEK 79 million and SEK 591 million. The social security costs are expected to occur mainly during 2014-2015.
** - (The compensation costs for an alternative Key Contributor Retention Cash Program may vary depending on the development of the stock price during the qualifying period. This has been disregarded in the calculations since these costs represent a minor part of the overall compensation costs.)
Costs affecting the income statement and the cash flow
Plan administration costs have been estimated to SEK 10 million, distributed over the LTV 2011 period, i.e. 2011-2015.
The administration cost for transfer of shares by way of an equity swap agreement is estimated to some SEK 163 million, compared to less than SEK 100,000 for using existing shares in treasury.
Dilution and effects on important key figures
The Company has approximately 3.3 billion shares in issue. As per 31 December, 2010, the Company held 73 million shares in treasury. In order to implement the LTV 2011, a total of up to 23.4 million shares of series B are required, which corresponds to approximately 0.73 percent of the total number of outstanding shares. The number of shares covered by ongoing programs as per 31 December, 2010, amounts to approximately 50 million shares, corresponding to approximately 1.6 percent of the number of out�standing shares.
Out of the 23.4 million shares of series B required for the LTV 2011, 19.4 million shares may be transferred to employees free of consideration, which could cause a dilutive effect of 0.6 percent on earnings per share. This dilutive effect is not affected by the price for the shares at the time of matching since they are transferred free of consideration to the employee. There will be no dilutive effect on earnings per share of the 4 million shares, which may be transferred on NASDAQ OMX Stockholm in order to cover social security payments, as the shares will be sold at market value.
Proposals
The Long-Term Variable Remuneration Program 2011
The Board of Directors proposes that the Annual General Meeting resolve on the implementation of (1) a Stock Purchase Plan, (2) a Key Contributor Retention Plan, and (3) an Executive Performance Stock Plan.
In order to implement the LTV 2011, the Board of Directors proposes that no more than in total 19,400,000 shares of series B in Telefonaktiebolaget LM Ericsson (hereinafter referred to as "the Company" or "Ericsson") may be transferred to employees in the Ericsson Group and, moreover, that 4,000,000 shares may be sold on NASDAQ OMX Stockholm in order to cover, inter alia, social security payments.
The Company's current holding of shares in treasury is sufficient for the carrying out of the LTV 2011.
The Board of Directors proposes that the Annual General Meeting resolve in accordance with the proposals set out below.
Item 11.1 Implementation of the Stock Purchase Plan
All employees within the Ericsson Group, except for what is mentioned in the fourth paragraph below, will be offered to participate in the Stock Purchase Plan.
Employees who participate in the Stock Purchase Plan shall, during a 12 month period from the implementation of the plan, be able to invest up to 7.5 percent of gross fixed salary in shares of series B in the Company on NASDAQ OMX Stockholm or in ADSs on NASDAQ. The CEO shall have the right to invest up to 10 percent of gross fixed salary and 10 percent of short term variable remuneration for purchase of shares.
If the purchased shares are retained by the employee for three years from the investment date and the employ�ment with the Ericsson Group contin�ues during that time, the employee will be given a corresponding number of shares of series B or ADSs, free of consideration.
Participation in the Stock Purchase Plan presupposes that such participation is legally possible in the various jurisdictions concerned and that the administrative costs and financial efforts are reasonable in the opinion of the Company.
Item 11.2 Transfer of treasury stock for the Stock Purchase Plan
a) Transfer of treasury stock to employees
Transfer of no more than 9,800,000 shares of series B in the Company may occur on the following terms and conditions:
*
The right to acquire shares shall be granted to such persons within the Ericsson Group covered by the terms and conditions of the Stock Purchase Plan. Furthermore, subsidiaries within the Ericsson Group shall have the right to acquire shares, free of consideration, and such subsidiaries shall be obli�gated to immediately transfer, free of consideration, shares to their employees covered by the terms and conditions of the Stock Purchase Plan.
*
The employee shall have the right to receive shares during the period when the employee is entitled to receive shares pursuant to the terms and condi�tions of the Stock Purchase Plan, i.e. during the period from November 2011 up to and including November 2015.
*
Employees covered by the terms and conditions of the Stock Purchase Plan shall receive shares of series B in the Company, free of consideration.
b) Transfer of treasury stock on an exchange
The Company shall have the right to, prior to the Annual General Meeting in 2012, transfer no more than 1,900,000 shares of series B in the Company, in order to cover certain expenses, mainly social security payments. Transfer of the shares shall be effected on NASDAQ OMX Stockholm at a price within the at each time prevailing price interval for the share.
Item 11.3 Equity Swap Agreement with third party in relation to the Stock Purchase Plan
In the event that the required majority is not reached under item 11.2 above, the finan�cial exposure of the Stock Purchase Plan shall be hedged by the Company entering into an equity swap agreement with a third party, under which the third party shall, in its own name, acquire and transfer shares in the Company to employees covered by the Stock Purchase Plan.
Item 11.4 Implementation of the Key Contributor Retention Plan
In addition to the regular matching of one share pursuant to the Stock Purchase Plan described above, up to 10 percent of the employees (presently approximately 9,000) are selected as key contributors and will be offered an additional match�ing of shares, free of consideration, within the Key Contributor Retention Plan.
If the shares purchased in accordance with the terms and conditions of the Stock Purchase Plan are retained by an employee for three years from the investment date and the employment with the Ericsson Group continues during that time, the employee will be entitled to an additional matching share, free of con�sideration, for every share purchased, in addition to the regular matching of one share.
Participation in the Key Contributor Retention Plan presupposes that such participa�tion is legally possible in the various jurisdictions concerned and that the administrative costs and financial efforts are reasonable in the opinion of the Company. The Board of Directors shall however be entitled, but not obligated, to arrange for an alternative cash plan for key contributors in specific jurisdictions, should any of the aforementioned pre�suppositions prove not to be at hand. Such alterna�tive cash plan shall, as far as practi�cal correspond to the terms and condi�tions of the Key Contributor Retention Plan.
Item 11.5 Transfer of treasury stock for the Key Contributor Retention Plan
a) Transfer of treasury stock to employees
Transfer of no more than 6,100,000 shares of series B in the Company may occur on the following terms and conditions.
*
The right to acquire shares shall be granted to such persons within the Ericsson Group covered by the terms and conditions of the Key Contributor Retention Plan. Furthermore, subsidiaries within the Ericsson Group shall have the right to acquire shares, free of consideration, and such subsidiaries shall be obli�gated to immediately transfer, free of consideration, shares to their employees covered by the terms and conditions of the Key Contributor Retention Plan.
*
The employee shall have the right to receive shares during the period when the employee is entitled to receive shares pursuant to the terms and condi�tions of the Key Contributor Retention Plan, i.e. during the period from November 2011 up to and including November 2015.
*
Employees covered by the terms and conditions of the Key Contributor Retention Plan shall receive shares of series B in the Company, free of consideration.
b) Transfer of treasury stock on an exchange
The Company shall have the right to, prior to the Annual General Meeting in 2012, transfer no more than 1,200,000 shares of series B in the Company, in order to cover certain expenses, mainly social security payments. Transfer of the shares shall be effected on NASDAQ OMX Stockholm at a price within the at each time prevailing price interval for the share.
Item 11.6 Equity Swap Agreement with third party in relation to the Key
Contributor Retention Plan
In the event that the required majority is not reached under item 11.5 above, the finan�cial exposure of the Key Contributor Retention Plan shall be hedged by the Company entering into an equity swap agreement with a third party, under which the third party shall, in its own name, acquire and transfer shares in the Company to employees covered by the Key Contributor Retention Plan.
Item 11.7 Implementation of the Executive Performance Stock Plan
In addition to the regular matching of shares pursuant to the Stock Purchase Plan described above, senior managers, up to 0.5 percent of employees (presently approximately 450, although it is anticipated that the number of participants will be sig�nificantly lower) will be offered an additional matching of shares, free of consideration, within the Executive Performance Stock Plan.
If the shares purchased in accordance with the terms and conditions of the Stock Purchase Plan are retained by an employee for three years from the investment date and the employment with the Ericsson Group continues during that time, the employee will be entitled to the following matching of shares, free of con�sidera�tion, in addition to the regular matching of one share:
*
The President may be entitled to an additional performance match of up to nine shares for each one purchased.
*
Other senior managers may be entitled to an additional performance match of up to either four or six shares for each one purchased.
The nomination of senior managers will be on the basis of position, seniority and per�formance at the discretion of the Remuneration Committee, which will approve partici�pation and matching share opportunity.
The terms and conditions of the additional performance match under the Executive Performance Stock Plan will be based on the outcome of three targets, which are independent of each other and have equal weighting:
*
Up to one third of the award shall vest provided the compound annual growth rate (CAGR) of consolidated net sales between year 0 (2010 financial year) and year 3 (2013 financial year) is between 4 and 10 percent. Matching will begin at a threshold level of 4 percent CAGR and increase on a linear scale to full vesting of this third of the award at 10 percent CAGR.
*
Up to one third of the award shall vest provided the compound annual growth rate (CAGR) of consolidated operating income between year 0 (2010 financial year) and year 3 (2013 financial year) is between 5 and 15 percent. Income from joint ventures and restructuring charges will be included though restructuring charges for 2010 will be excluded. Matching will begin at a threshold level of 5 percent CAGR and increase on a linear scale to full vesting of this third of the award at 15 percent CAGR.
*
Up to one third of the award will be based on the cash conversion during each of the years during the performance period, calculated as cash flow from operating activities divided by net income reconciled to cash. One ninth of the total award will vest for any year, i.e. financial years 2011, 2012 and 2013, if cash conversion is at or above 70 percent.
The Board of Directors considers that long-term value creation will be reflected in the success of these targets, aligning executives with long-term shareholder interests. There will be no alloca�tion of shares if none of the threshold levels have been achieved, i.e. CAGR is less than 4 percent for net sales and less than 5 percent for operating income, and a 70 percent cash conversion has not been achieved during the performance period. The minimum matching at the threshold levels is 0. The maxi�mum number of performance matching shares - 4 shares, 6 shares and 9 shares respectively - will be allocated if the maximum performance levels of CAGR of 10 percent for net sales and 15 percent for operating income have been achieved, or exceeded, and a cash conversion of 70 percent or more has been achieved each year during the period.
Before the number of performance shares to be matched are finally determined, the Board of Directors shall examine whether the performance matching is reasonable con�sidering the Company's financial results and position, conditions on the stock market and other circumstances, and if not, as determined by the Board of Directors, reduce the number of performance shares to be matched to the lower number of shares deemed appropriate by the Board of Directors. When undertaking its evaluation of performance outcomes the Board of Directors will consider, in particular, the impact of larger acquisitions, divestitures, the creation of joint ventures and any other significant capital event on the three targets on a case by case basis.
Item 11.8 Transfer of treasury stock for the Executive Performance Stock Plan
a) Transfer of treasury stock to employees
Transfer of no more than 3,500,000 shares of series B in the Company may occur on the following terms and conditions.
� The right to acquire shares shall be granted to such persons within the Ericsson Group covered by the terms and conditions of the Executive Performance Stock Plan. Furthermore, subsidiaries within the Ericsson Group shall have the right to acquire shares, free of consideration, and such subsidiaries shall be obli�gated to immediately transfer, free of consideration, shares to their employees covered by the terms and conditions of the Executive Performance Stock Plan.
� The employee shall have the right to receive shares during the period when the employee is entitled to receive shares pursuant to the terms and condi�tions of the Executive Performance Stock Plan, i.e. during the period from November 2011 up to and including November 2015.
� Employees covered by the terms and conditions of the Executive Performance Stock Plan shall receive shares of series B in the Company, free of consideration.
b) Transfer of treasury stock on an exchange
The Company shall have the right to, prior to the Annual General Meeting in 2012, transfer no more than 900,000 shares of series B in the Company, in order to cover certain expenses, mainly social security payments. Transfer of the shares shall be effected on NASDAQ OMX Stockholm at a price within the at each time prevailing price interval for the share.
Item 11.9 Equity Swap Agreement with third party in relation to the Executive Performance Stock Plan
In the event that the required majority is not reached under item 11.8 above, the finan�cial exposure of the Executive Performance Stock Plan shall be hedged by the Company entering into an equity swap agreement with a third party, under which the third party shall, in its own name, acquire and transfer shares in the Company to employees covered by the Executive Performance Stock Plan.
Majority rules
The resolutions of the Annual General Meeting implementation of the three plans according to items 11.1, 11.4 and 11.7 above require that more than half of the votes cast at the General Meeting approve the proposals. The General Meeting's resolutions on transfers of treasury stock to employees and on an exchange accord�ing to items 11.2, 11.5 and 11.8 above, shall be adopted as one resolution for each of the three items, and require that shareholders representing at least nine-tenths of the votes cast as well as the shares represented at the General Meeting approve the proposals. A valid resolution in accordance with the proposals for an equity swap agreement under items 11.3, 11.6 and 11.9 above requires that more than half of the votes cast at the General Meeting approve the proposals.
Description of ongoing variable remuneration programs
The Company's ongoing variable remuneration programs are described in detail in the Annual Report 2010 in the note to the Consolidated Financial Statements, Note C29 and on the Company's website. The Remuneration Report published in the Annual Report outlines how the Company implements its remuneration policy in line with corporate governance best practice.
Item 12 The Board of Directors' proposal for resolution on transfer of treasury stock in relation to the resolutions on the Long-Term Variable Remuneration Programs 2007, 2008, 2009 and 2010
Background
The Extraordinary General Meeting 2007 as well as the Annual General Meetings 2008, 2009 and 2010 resolved on a right for the Company to transfer in total not more than 14,280,000*** shares of series B in the Company on a stock exchange to cover certain payments, mainly social security charges, that may occur in relation to the Long-Term Variable Remuneration Programs 2007, 2008, 2009 and 2010.
Each resolution has for legal reasons only been valid up to the following Annual General Meeting. Resolutions on transfer of treasury stock for the purpose of the above mentioned plan and programs have therefore been repeated at the subsequent Annual General Meeting.
In accordance with the resolutions on transfer of in total not more than 14,280,000 shares, 504,800 shares of series B have been transferred up to March 1, 2011.
*** - (Recalculated for the 2008 reverse split of shares 1:5)
Proposal
The Board of Directors proposes that the Annual General Meeting resolve that the Company shall have the right to transfer, prior to the Annual General Meeting 2012, not more than 13,775,200 shares of series B in the Company, or the lower number of shares of series B, which as per April 13, 2011 remains of the original 14,280,000 shares, for the purpose of covering certain payments, primarily social security charges that may occur in relation to the Long-Term Variable Remuneration Programs 2007, 2008, 2009 and 2010. Transfer of shares shall be effected on NASDAQ OMX Stockholm at a price within the, at each time, prevailing price interval for the share.
Majority rules
The resolution of the Annual General Meeting on a transfer of treasury stock requires that shareholders holding at least two-thirds of the votes cast as well as the shares represented at the Meeting vote in favor of the proposal.
Item 13 The Board of Directors' proposal for resolution on amendment of the Articles of Association
The Board of Directors proposes the Articles of Association (� 2) be amended to adjust the description of the object's of the Company to the Company's strategy to expand into new industry segments, such as governments, health industry, transport, utilities and mobile money.
Current wording:
� 2
The objects of the Company are to, directly or indirectly, develop, construct, produce, sell and deliver and in other forms carry on trade and other commercial business related to goods, products and other equipment as well as maintenance and other services within the area of telecommunication and radio technology and other technologies for transference, transmission and other communications of speech, data, images, text and other kinds of information and to carry on other activities consistent therewith.
Proposed wording:
� 2
The objects of the Company are to, directly or indirectly, develop, construct, produce, sell and deliver and in other forms carry on trade and other commercial business related to goods, products and other equipment as well as maintenance and other services based on telecommunication and radio technology and other technologies for transference, transmission and other communications of speech, data, images, text, other kinds of information and means of payment and to carry on other activities consistent therewith.
Shares and votes
There are in total 3,273,351,735 shares in the Company; 261,755,983 shares of series A and 3,011,595,752 shares of series B, corresponding to in total 562,915,558 votes. The Company's holding of treasury stock amounts to 70,509,138 shares of series B, corresponding to 7,050,913 votes.
Information at the Annual General Meeting
The Board of Directors and the President shall, if any shareholder so requests and the Board of Directors believes that it can be done without material harm to the Company, provide information regarding circumstances that may affect the assessment of an item on the agenda and circumstances that can affect the assessment of the Company's or its subsidiaries' financial situation and the Company's relation to other companies within the Group.
Documents
The complete proposals of the Nomination Committee with respect to Items 1 and 9 above are enclosed.
In respect of all other items, complete proposals are provided under the respective item in the Notice.
The Annual Report and the Auditor's Report as well as the Auditor's report regarding guidelines for compensation to senior management are available at the Company and posted on the Company's website www.ericsson.com. The documents will be sent to shareholders upon request.
Stockholm, March 2011
THE BOARD OF DIRECTORS
*
Leif Johansson as new Chairman of the Board (item 9.3)
*
Jacob Wallenberg as new Board member (item 9.3)
*
Increase of the individual Board fee as well as the fee for work in the Finance- and Remuneration Committees of the Board (item 9.2)
The Board proposes
* A dividend of SEK 2,25 per share (item 8.3)
* Unchanged guidelines for remuneration to senior management (item 10)
* Continued Long Term Variable Remuneration Program with new performance targets for the executive plan
* Transfer of treasury stock in relation to previously resolved remuneration programs (item 12)
* Amendment in the description of the objects of the company in the Articles of Association (item 13)
Telefonaktiebolaget LM Ericsson's shareholders are invited to participate in the Annual General Meeting of Shareholders to be held on Wednesday, April 13, 2011 at 3.00 p.m. at the Annex, Ericsson Globe, Globentorget, Stockholm. Registration to the Meeting starts at 1.30 p.m.
Registration and notice of attendance
Shareholders who wish to attend the Meeting must
* be recorded in the share register kept by Euroclear Sweden AB, the Swedish securities registry, on Thursday, April 7, 2011; and
* give notice of attendance to the Company at the latest on Thursday, April 7, 2011. Notice of attendance can be given on Ericsson's website www.ericsson.com, by telephone +46 (0)8 402 90 54 on weekdays between 10 a.m. and 4 p.m. or by fax +46 (0)8 402 92 56 with reference "Ericsson's AGM".
Notice may also be given in writing to:
Telefonaktiebolaget LM Ericsson
General Meeting of Shareholders
Box 7835
SE-103 98 Stockholm
Sweden
When giving notice of attendance, please state name, date of birth, address, telephone no. and number of attending assistants, if any.
The Meeting will be conducted in Swedish and simultaneously interpreted into English.
Shares registered in the name of a nominee
In addition to giving notice of attendance, shareholders having their shares registered in the name of a nominee, must request the nominee to temporarily enter the shareholder into the share register as per Thursday, April 7, 2011, in order to be entitled to attend the Meeting. The shareholder should inform the nominee to that effect well before that day.
Proxy
Shareholders represented by proxy shall issue a power of attorney for the representative. A power of attorney issued by a legal entity must be accompanied by a copy of the entity's certificate of registration (should no such certificate exist, a corresponding document of authority must be submitted). In order to facilitate the registration at the Meeting, the power of attorney in the original, certificate of registration and other documents of authority should be sent to the Company in advance at the address above for receipt by Tuesday, April 12, 2011. Forms of Power of Attorney in Swedish and English are available on Ericsson's website, www.ericsson.com.
Agenda
1 Election of the Chairman of the Meeting.
2 Preparation and approval of the voting list.
3 Approval of the agenda of the Meeting.
4 Determination whether the Meeting has been properly convened.
5 Election of two persons approving the minutes.
6 Presentation of the annual report, the auditors' report, the consolidated accounts, the auditors' report on the consolidated accounts and the auditors' presentation of the audit work during 2010.
7 The President's speech and questions by the shareholders to the Board of Directors and the management.
8 Resolutions with respect to
8.1 adoption of the income statement and the balance sheet, the consoli�dated income statement and the consolidated balance sheet;
8.2 discharge of liability for the members of the Board of Directors and the President;
8.3 the appropriation of the profit in accordance with the approved balance sheet and determination of the record date for dividend.
9 Presentation of the proposals of the Nomination Committee, election of the Board of Directors etc.
9.1 Determination of the number of Board members and Deputies of the Board of Directors to be elected by the Meeting.
9.2 Determination of the fees payable to non-employed members of the Board of Directors elected by the Meeting and non-employed members of the Committees of the Board of Directors elected by the Meeting.
9.3 Election of the Chairman of the Board of Directors, other Board members and Deputies of the Board of Directors.
9.4 Resolution on the procedure on appointment of the members of the Nomination Committee and determination of the assignment of the Committee.
9.5 Determination of the fees payable to the members of the Nomination Committee.
9.6 Determination of the fees payable to the Auditor.
9.7 Election of Auditor.
10 Resolution on the guidelines for remuneration to senior management.
11 Long-Term Variable Remuneration Program 2011.
11.1 Resolution on implementation of the Stock Purchase Plan.
11.2 Resolution on transfer of treasury stock for the Stock Purchase Plan.
11.3 Resolution on Equity Swap Agreement in relation to the Stock Purchase Plan.
11.4 Resolution on implementation of the Key Contributor Retention Plan.
11.5 Resolution on transfer of treasury stock for the Key Contributor Retention Plan.
11.6 Resolution on Equity Swap Agreement in relation to the Key Contributor Retention Plan.
11.7 Resolution on implementation of the Executive Performance Stock Plan.
11.8 Resolution on transfer of treasury stock for the Executive Performance Stock Plan.
11.9 Resolution on Equity Swap Agreement in relation to the Executive Performance Stock Plan.
12 Resolution on transfer of treasury stock in relation to the resolutions on the Long-Term Variable Remuneration Programs 2007, 2008, 2009 and 2010.
13 Resolution on amendment of the Articles of Association.
14 Resolution on Einar Hellbom's proposal for the Meeting to delegate to the Board of Directors to review how shares are to be given equal voting rights and to present a proposal to that effect at the next Annual General Meeting.
15 Close of the Meeting.
Item 1 Chairman of the Meeting
The Nomination Committee proposes the Chairman of the Board of Directors,
Michael Treschow, be elected Chairman of the Meeting.
Item 8.3 Dividend and record date
The Board of Directors proposes a dividend of SEK 2.25 per share and Monday, April 18, 2011, as record date for dividend. Assuming this date will be the record day, Euroclear Sweden AB is expected to disburse dividends on Thursday, April 21, 2010.
Item 9.1-9.3 Number of Board members and Deputies, Directors' fees, election of the Chairman and other members of the Board of Directors
The Nomination Committee, appointed in accordance with the procedure that was re�solved by the Annual General Meeting 2010, is composed of the Chairman of the Committee, Jacob Wallenberg, Investor AB, Carl-Olof By, AB Industriv�rden, Svenska Handelsbankens Pensionsstiftelse and Pensionskassan SHB F�rs�kringsf�rening, Caroline af Ugglas, Livf�rs�kringsaktiebolaget Skandia, Marianne Nilsson, Swedbank Robur Fonder and Michael Treschow, Chairman of the Board of Directors. The Nomination Committee proposes:
9.1 the number of Board members to be elected by the Meeting shall remain twelve and no Deputy Directors be elected;
9.2 the fees to the non-employed Board members and to the non-employed members of the Committees to the Board of Directors elected by the Meeting be paid as follows:
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SEK 3,750,000 to the Chairman of the Board of Directors (unchanged);
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SEK 825,000 each to the other Board members (previously SEK 750,000);
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SEK 350,000 to the Chairman of the Audit Committee (unchanged);
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SEK 250,000 each to the other members of the Audit Committee (unchanged);
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SEK 200,000 each to the Chairmen of the Finance and the Remuneration Committee (previously SEK 125,000); and
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SEK 175,000 each to the other members of the Finance and the Remuneration Committee (previously SEK 125,000).
Fees in the form of synthetic shares
The Nomination Committee proposes the Directors should be offered, on unchanged terms, the possibility to receive part of the fees in respect of their Board assignment (however, not in respect of committee work) in the form of synthetic shares. A synthetic share signifies a right to receive future payment of an amount corresponding to the market price of a share of series B in the Company on NASDAQ OMX Stockholm at the time of payment. The following principal terms and conditions shall apply.
A nominated Director shall have the possibility of choosing to receive the fee in respect of his or her Board assignment, according to the following four alternatives:
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25 percent in cash - 75 percent in synthetic shares;
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50 percent in cash - 50 percent in synthetic shares;
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75 percent in cash - 25 percent in synthetic shares; and
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100 percent in cash.
The number of synthetic shares allocated to the Director shall be based on a volume weighted average of the market price of shares of series B on NASDAQ OMX Stockholm during the five trading days immediately following the publication of the Company's interim re�port for the first quarter of 2011. The synthetic shares are vested during the term of office, with 25 percent per quarter of the year.
The synthetic shares entail a right to receive payment, following the publication of Ericsson's year-end financial statement in 2016, of a cash amount per synthetic share corresponding to the market price of shares of series B in the Company at the time of payment.
Dividend in respect of shares of series B in the Company, which the General Meeting of Shareholders has resolved on during the holding period, shall be disbursed at the same time as the cash amount.
Should the Director's assignment to the Board of Directors come to an end not later than during the third calendar year after the year in which the General Meeting of Shareholders re�solved on allocation of the synthetic shares, payment may take place the year after the assignment came to an end.
The number of synthetic shares may be subject to recalculation in the event of bonus issues, split, rights issues and similar measures, under the terms and conditions of the synthetic shares.
The intention is that the Company's future commitment to pay with regard to the synthetic shares, as set out above, should be hedged by the Company, either through repurchased own shares which are sold on the market in connection with payments to the Directors or through a hedging agreement with a bank. Due to the hedging measures, the financial difference for the Company, should all Directors receive part of their fees in the form of synthetic shares compared with the fees being paid in cash only, is assessed to be very limited.
Item 9.3 Directors of the Board elected by the Meeting
Chairman of the Board of Directors
The Nomination Committee proposes Leif Johansson be elected new Chairman of the Board of Directors (Michael Treschow, presently Chairman of the Board, has declined re-election).
Other members of the Board of Directors
The Nomination Committee proposes re-election of Roxanne S. Austin, Sir Peter L. Bonfield, B�rje Ekholm, Ulf J. Johansson, Sverker Martin-L�f, Nancy McKinstry, Anders Nyr�n, Carl-Henric Svanberg, Hans Vestberg and Michelangelo Volpi and election of Jacob Wallenberg as new Board member (Marcus Wallenberg has declined re-election).
Leif Johansson
Born 1951. M. Sc. Engineering, Chalmers University of Technology.
Board Chairman: European Round Table of Industrialists.
Board member: Bristol-Myers Squibb Company, AB Volvo, Svenska Cellulosa Aktiebolaget SCA and Svenskt N�ringsliv.
Holdings in Ericsson: 2,933 Class B shares.
Principal work experience and other information: Since 1997, President and CEO of AB Volvo. Before this Leif Johansson was Executive Vice President in Electrolux (1988), CEO (1991) and President and CEO of Electrolux 1994-1997. Leif Johansson is a member of the Royal Swedish Academy of Engineering Sciences.
Jacob Wallenberg
Born 1956. B.Sc. Economics and M.B.A., Wharton School, University of Pennsylvania, Reserve Officer, Swedish Navy.
Board Chairman: Investor AB.
Deputy Board Chairman: Atlas Copco AB, SAS AB and SEB Skandinaviska Enskilda Banken AB (SEB).
Board member: ABB Ltd., The Coca-Cola Company, The Knut and Alice Wallenberg Foundation and Stockholm School of Economics.
Holdings in Ericsson: None.
Principal work experience and other information: Chairman of the Board of Investor AB since 2005. Jacob Wallenberg has extensive experience in banking and finance, e.g. from commercial banks JP Morgan, New York and SEB. He was appointed President and CEO of SEB in 1997 and in 1998 as Chairman of SEB's Board of Directors. During 1990-1993 he was Executive Vice President and CFO of Investor. Jacob Wallenberg is the Chairman of IBLAC (Mayor of Shanghai's International Business Leaders Advisory Council) and is a member of The European Round Table of Industrialists.
Item 9.4 Procedure on appointment of the Nomination Committee and determination of the assignment of the Committee
The Nomination Committee proposes a procedure on appointment of the Nomination Committee, in substance as follows:
The Company shall have a Nomination Committee of no less than five members. One member shall be the chairman of the Board of Directors.
Based on the shareholding statistics the Company receives from Euroclear Sweden AB as per the last bank day of the month in which the Annual General Meeting is held, the Nomination Committee shall, without unnecessary delay, identify the four largest shareholders by voting power of the Company.
As soon as reasonably feasible, the Nomination Committee shall, in a suitable manner, contact the identified four largest shareholders and request them, within reasonable time considering the circumstances, however not exceeding 30 days, to provide in writing to the Nomination Committee the name of the person the shareholder wish to appoint member of the Nomination Committee.
The chairman of the Nomination Committee shall be the member that represents the largest shareholder(s) by voting power, provided the Nomination Committee does not unanimously resolve to appoint another member, appointed by a shareholder, chairman of the Nomination Committee.
In case a shareholder considers its shareholding in the Company is of such significance that it justifies a participation in the Nomination Committee, the shareholder may inform in writing the Nomination Committee thereof and in connection hereto adequately verify its shareholding. Upon receipt of such a request no later than December 31, and provided the Nomination Committee considers the reported shareholding be adequately verified, the Nomination Committee shall confirm this to the shareholder, who will then be entitled to appoint a supplemental member of the Nomination Committee. In case the Nomination Committee receives a notification from a shareholder past the date of December 31, no action is required to be taken.
The assignment covers to provide proposals for
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chairman at the Annual General Meeting;
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chairman of the Board of Directors and other members of the Board of Directors appointed by the Annual General Meeting;
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fees payable to non-employed members of the Board of Directors; and
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fees payable to the auditors as well as, when applicable, election of auditors.
Henceforth, no remuneration shall be paid to the members of the Nomination Committee. However, the Company shall bear the reasonable expenses reasonably related to the assignment of the Nomination Committee.
Item 9.5 Fees payable to the members of the Nomination Committee
The Nomination Committee proposes no remuneration be paid to the Nomination Committee members.
Item 9.6 Fees payable to the Auditor
The Nomination Committee proposes, like previous years, the Auditor fees be paid against approved account.
Item 9.7 Election of Auditor
The Nomination Committee proposes PricewaterhouseCoopers be appointed Auditor for the period as of the end of the Annual General Meeting 2011 until the end of the Annual General Meeting 2012.
Item 10 Guidelines for remuneration to senior management
The Board of Directors proposes the Annual General Meeting resolves on the following guidelines for remuneration and other employment terms for the senior management for the period up to the 2012 Annual General Meeting. The guidelines proposed do not comprise any material changes compared to the principles resolved by the 2010 Annual General Meeting.
Details of how we deliver on our principles and policy, including information on previously decided long term variable remuneration that has not yet become due for payment, can be found in the Remuneration Report and in Note C29, "Information regarding Members of the Board of Directors, Management and Employees" in the annual report 2010.
2011 Remuneration Policy
Remuneration at Ericsson is based on the principles of performance, competitiveness and fairness. These principles and good practice in Sweden guide our policy to:
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Attract and retain highly competent, performing and motivated people that have the ability, experience and skill to deliver on the Ericsson strategy.
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Encourage behavior consistent with Ericsson's culture and core values of professionalism, respect and perseverance.
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Ensure fairness in reward by delivering total remuneration that is appropriate but not excessive.
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Ensure a total compensation mix of fixed and variable remuneration and benefits that reflects the Company's principles and is competitive where Ericsson competes for talent.
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Encourage variable remuneration which, first, aligns employees with clear and relevant targets, second, reinforces performance and, third, enables flexible remuneration costs.
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Ensure that all variable remuneration plans have maximum award and vesting limits.
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Encourage employees to deliver sustained performance and build up a personal shareholding in Ericsson, aligning the interests of shareholders and employees.
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Communicate clearly to both employees and shareholders how Ericsson translates remuneration principles and policy into practice.
Group Management
For Group Management consisting of the Executive Leadership Team, including the President and CEO, in the following referred to as the "Group Management", total remuneration consists of fixed salary, short- and long-term variable remuneration, pension and other benefits.
Furthermore, the following guidelines apply for Group Management:
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Variable remuneration is through cash and stock-based programs awarded against specific business targets derived from the long term business plan approved by the Board of Directors. Targets may include financial targets at either corporate or unit level, operational targets, employee motivation targets and customer satisfaction targets.
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With the current composition of Group Management, the Company's cost during 2011 for the variable remuneration of Group Management can, at a constant share price, amount to between 0 and 150 percent of the aggregate fixed salary cost, all excluding social security costs.
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All benefits, including pension benefits, follow the competitive practice in the home country taking total compensation into account. The retirement age is normally 60 to 65 years of age.
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By way of exception, additional arrangements can be made when deemed required. Such additional arrangement shall be limited in time and shall not exceed a period of 36 months and two times the remuneration that the individual concerned would have received had no additional arrangement been made.
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The mutual notice period may be no more than six months. Upon termination of employment by the Company, severance pay amounting to a maximum of 18 months fixed salary is paid. Notice of termination given by the employee due to significant structural changes, or other events that in a determining manner affect the content of work or the condition for the position, is equated with notice of termination served by the Company.
Item 11.1-11.9 Long-Term Variable Remuneration Program 2011 (LTV 2011) including the Board of Directors' proposal for resolutions on implementation of an all employee Stock Purchase Plan, a Key Contributor Retention Plan and an Executive Performance Stock Plan and, under each plan respectively, transfer of treasury stock
Following the Board of Directors' annual evaluation of total remuneration and ongoing programs* ,it proposes to make only minor changes to the structure of Ericsson's Long-Term Variable Remuneration Program for 2011. The program is an integral part of the Company's remuneration strategy, in particular the Board of Directors wishes to encourage all employees to become and remain shareholders and the leadership to build significant equity holdings. However, following extensive evaluation of the program it is proposed that the Earnings per Share performance measure for the Executive Performance Stock Plan be replaced with the three measures of Net Sales Growth, Operating Income Growth and Cash Conversion to better reflect the business strategy and long term value creation of the Company, as described in the proposal below.
It is anticipated that the LTV 2011 will require up to 23.4 million shares, corresponding to a dilution of up to 0.73 percent of outstanding shares, at a cost between SEK 972 million and SEK 1,682 million unevenly distributed over the years 2011-2015.
* - (See more about the Board of Directors' evaluation in the Remuneration Report attached to the 2010 Annual Report)
Three plans
The LTV 2011 builds on a common platform, but consists of three separate plans.
The Stock Purchase Plan is an all employee plan and is designed to create an incen�tive for all employees to become shareholders. The aim is to secure commitment to long-term value creation throughout Ericsson.
The Key Contributor Retention Plan is part of Ericsson's talent strategy and is designed to ensure long term retention of top-talent with critical skills vital to Ericsson's future performance. Up to ten percent of the Company's employees are defined as "key contribu�tors", based on a rigorous selection process incorporating elements such as individ�ual performance, possession of critical skills and future poten�tial. The company monitors the selection process carefully and monitors nominations for bias of factors such as seniority, gender, age and frequency of award.
The Executive Performance Stock Plan is designed to encourage long-term value creation in alignment with share�holders' interests. The plan is offered to a defined group of senior managers, up to 0.5 percent of the total employee population. The aim is to attract, retain and motivate executives in a competitive market through performance-based share related incentives and to encourage the build-up of significant equity stakes.
There will be three performance criteria for the Executive Performance Stock Plan 2011:
* Up to one third of the award will vest if the compound annual growth rate of consolidated net sales is between 4 and 10 percent comparing 2013 financial results to 2010.
* Up to one third of the award will vest if the compound annual growth rate of consolidated operating income is between 5 and 15 percent comparing 2013 financial results to 2010.
* Up to one third of the award will vest if cash conversion is at or above 70 percent during each of the years 2011-2013 and vesting one ninth of the total award for each year the target is achieved.
Financing
The Board of Directors has considered different financing methods for transfer of shares to employees under the LTV 2011, such as transfer of treasury stock and an equity swap agree�ment with a third party.
The Company's current holding of treasury stock is sufficient for the carrying out of the LTV 2011. The Board of Directors considers the transfer of treasury stock as the most cost efficient and flexible method to transfer shares under the LTV 2011 and the main alterna�tive is that the financial exposure is secured by transfer of treasury stock.
Costs
The total effect on the income statement of the LTV 2011, including financing costs, is estimated to range between SEK 972 million and SEK 1,682 million unevenly distrib�uted over the years 2011-2015. The costs constitute less than three percent of Ericsson's total remuneration costs 2010, including social security fees, amounting to SEK 57 billion.
The calculations are based on assumptions of present participation rate in the Stock Purchase Plan and the Key Contributor Retention Plan and full participation in the Executive Performance Stock Plan, at maximum contribution levels.
Costs affecting the income statement, but not the cash flow
Compensation costs, corresponding to the value of matching shares transferred to employ�ees, are estimated to range between SEK 893 million and SEK 1,091 million, depend�ing on the fulfilment of the performance targets of the Executive Performance Stock Plan **.
The compensation costs are distributed over the LTV 2011 period, i.e. 2011-2015. Social security charges as a result of transfer of shares to employees depend on the performance against the Executive Performance Stock Plan targets and based on an assumed average share price at matching between SEK 30 and SEK 175, the costs are estimated to range between SEK 79 million and SEK 591 million. The social security costs are expected to occur mainly during 2014-2015.
** - (The compensation costs for an alternative Key Contributor Retention Cash Program may vary depending on the development of the stock price during the qualifying period. This has been disregarded in the calculations since these costs represent a minor part of the overall compensation costs.)
Costs affecting the income statement and the cash flow
Plan administration costs have been estimated to SEK 10 million, distributed over the LTV 2011 period, i.e. 2011-2015.
The administration cost for transfer of shares by way of an equity swap agreement is estimated to some SEK 163 million, compared to less than SEK 100,000 for using existing shares in treasury.
Dilution and effects on important key figures
The Company has approximately 3.3 billion shares in issue. As per 31 December, 2010, the Company held 73 million shares in treasury. In order to implement the LTV 2011, a total of up to 23.4 million shares of series B are required, which corresponds to approximately 0.73 percent of the total number of outstanding shares. The number of shares covered by ongoing programs as per 31 December, 2010, amounts to approximately 50 million shares, corresponding to approximately 1.6 percent of the number of out�standing shares.
Out of the 23.4 million shares of series B required for the LTV 2011, 19.4 million shares may be transferred to employees free of consideration, which could cause a dilutive effect of 0.6 percent on earnings per share. This dilutive effect is not affected by the price for the shares at the time of matching since they are transferred free of consideration to the employee. There will be no dilutive effect on earnings per share of the 4 million shares, which may be transferred on NASDAQ OMX Stockholm in order to cover social security payments, as the shares will be sold at market value.
Proposals
The Long-Term Variable Remuneration Program 2011
The Board of Directors proposes that the Annual General Meeting resolve on the implementation of (1) a Stock Purchase Plan, (2) a Key Contributor Retention Plan, and (3) an Executive Performance Stock Plan.
In order to implement the LTV 2011, the Board of Directors proposes that no more than in total 19,400,000 shares of series B in Telefonaktiebolaget LM Ericsson (hereinafter referred to as "the Company" or "Ericsson") may be transferred to employees in the Ericsson Group and, moreover, that 4,000,000 shares may be sold on NASDAQ OMX Stockholm in order to cover, inter alia, social security payments.
The Company's current holding of shares in treasury is sufficient for the carrying out of the LTV 2011.
The Board of Directors proposes that the Annual General Meeting resolve in accordance with the proposals set out below.
Item 11.1 Implementation of the Stock Purchase Plan
All employees within the Ericsson Group, except for what is mentioned in the fourth paragraph below, will be offered to participate in the Stock Purchase Plan.
Employees who participate in the Stock Purchase Plan shall, during a 12 month period from the implementation of the plan, be able to invest up to 7.5 percent of gross fixed salary in shares of series B in the Company on NASDAQ OMX Stockholm or in ADSs on NASDAQ. The CEO shall have the right to invest up to 10 percent of gross fixed salary and 10 percent of short term variable remuneration for purchase of shares.
If the purchased shares are retained by the employee for three years from the investment date and the employ�ment with the Ericsson Group contin�ues during that time, the employee will be given a corresponding number of shares of series B or ADSs, free of consideration.
Participation in the Stock Purchase Plan presupposes that such participation is legally possible in the various jurisdictions concerned and that the administrative costs and financial efforts are reasonable in the opinion of the Company.
Item 11.2 Transfer of treasury stock for the Stock Purchase Plan
a) Transfer of treasury stock to employees
Transfer of no more than 9,800,000 shares of series B in the Company may occur on the following terms and conditions:
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The right to acquire shares shall be granted to such persons within the Ericsson Group covered by the terms and conditions of the Stock Purchase Plan. Furthermore, subsidiaries within the Ericsson Group shall have the right to acquire shares, free of consideration, and such subsidiaries shall be obli�gated to immediately transfer, free of consideration, shares to their employees covered by the terms and conditions of the Stock Purchase Plan.
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The employee shall have the right to receive shares during the period when the employee is entitled to receive shares pursuant to the terms and condi�tions of the Stock Purchase Plan, i.e. during the period from November 2011 up to and including November 2015.
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Employees covered by the terms and conditions of the Stock Purchase Plan shall receive shares of series B in the Company, free of consideration.
b) Transfer of treasury stock on an exchange
The Company shall have the right to, prior to the Annual General Meeting in 2012, transfer no more than 1,900,000 shares of series B in the Company, in order to cover certain expenses, mainly social security payments. Transfer of the shares shall be effected on NASDAQ OMX Stockholm at a price within the at each time prevailing price interval for the share.
Item 11.3 Equity Swap Agreement with third party in relation to the Stock Purchase Plan
In the event that the required majority is not reached under item 11.2 above, the finan�cial exposure of the Stock Purchase Plan shall be hedged by the Company entering into an equity swap agreement with a third party, under which the third party shall, in its own name, acquire and transfer shares in the Company to employees covered by the Stock Purchase Plan.
Item 11.4 Implementation of the Key Contributor Retention Plan
In addition to the regular matching of one share pursuant to the Stock Purchase Plan described above, up to 10 percent of the employees (presently approximately 9,000) are selected as key contributors and will be offered an additional match�ing of shares, free of consideration, within the Key Contributor Retention Plan.
If the shares purchased in accordance with the terms and conditions of the Stock Purchase Plan are retained by an employee for three years from the investment date and the employment with the Ericsson Group continues during that time, the employee will be entitled to an additional matching share, free of con�sideration, for every share purchased, in addition to the regular matching of one share.
Participation in the Key Contributor Retention Plan presupposes that such participa�tion is legally possible in the various jurisdictions concerned and that the administrative costs and financial efforts are reasonable in the opinion of the Company. The Board of Directors shall however be entitled, but not obligated, to arrange for an alternative cash plan for key contributors in specific jurisdictions, should any of the aforementioned pre�suppositions prove not to be at hand. Such alterna�tive cash plan shall, as far as practi�cal correspond to the terms and condi�tions of the Key Contributor Retention Plan.
Item 11.5 Transfer of treasury stock for the Key Contributor Retention Plan
a) Transfer of treasury stock to employees
Transfer of no more than 6,100,000 shares of series B in the Company may occur on the following terms and conditions.
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The right to acquire shares shall be granted to such persons within the Ericsson Group covered by the terms and conditions of the Key Contributor Retention Plan. Furthermore, subsidiaries within the Ericsson Group shall have the right to acquire shares, free of consideration, and such subsidiaries shall be obli�gated to immediately transfer, free of consideration, shares to their employees covered by the terms and conditions of the Key Contributor Retention Plan.
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The employee shall have the right to receive shares during the period when the employee is entitled to receive shares pursuant to the terms and condi�tions of the Key Contributor Retention Plan, i.e. during the period from November 2011 up to and including November 2015.
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Employees covered by the terms and conditions of the Key Contributor Retention Plan shall receive shares of series B in the Company, free of consideration.
b) Transfer of treasury stock on an exchange
The Company shall have the right to, prior to the Annual General Meeting in 2012, transfer no more than 1,200,000 shares of series B in the Company, in order to cover certain expenses, mainly social security payments. Transfer of the shares shall be effected on NASDAQ OMX Stockholm at a price within the at each time prevailing price interval for the share.
Item 11.6 Equity Swap Agreement with third party in relation to the Key
Contributor Retention Plan
In the event that the required majority is not reached under item 11.5 above, the finan�cial exposure of the Key Contributor Retention Plan shall be hedged by the Company entering into an equity swap agreement with a third party, under which the third party shall, in its own name, acquire and transfer shares in the Company to employees covered by the Key Contributor Retention Plan.
Item 11.7 Implementation of the Executive Performance Stock Plan
In addition to the regular matching of shares pursuant to the Stock Purchase Plan described above, senior managers, up to 0.5 percent of employees (presently approximately 450, although it is anticipated that the number of participants will be sig�nificantly lower) will be offered an additional matching of shares, free of consideration, within the Executive Performance Stock Plan.
If the shares purchased in accordance with the terms and conditions of the Stock Purchase Plan are retained by an employee for three years from the investment date and the employment with the Ericsson Group continues during that time, the employee will be entitled to the following matching of shares, free of con�sidera�tion, in addition to the regular matching of one share:
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The President may be entitled to an additional performance match of up to nine shares for each one purchased.
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Other senior managers may be entitled to an additional performance match of up to either four or six shares for each one purchased.
The nomination of senior managers will be on the basis of position, seniority and per�formance at the discretion of the Remuneration Committee, which will approve partici�pation and matching share opportunity.
The terms and conditions of the additional performance match under the Executive Performance Stock Plan will be based on the outcome of three targets, which are independent of each other and have equal weighting:
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Up to one third of the award shall vest provided the compound annual growth rate (CAGR) of consolidated net sales between year 0 (2010 financial year) and year 3 (2013 financial year) is between 4 and 10 percent. Matching will begin at a threshold level of 4 percent CAGR and increase on a linear scale to full vesting of this third of the award at 10 percent CAGR.
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Up to one third of the award shall vest provided the compound annual growth rate (CAGR) of consolidated operating income between year 0 (2010 financial year) and year 3 (2013 financial year) is between 5 and 15 percent. Income from joint ventures and restructuring charges will be included though restructuring charges for 2010 will be excluded. Matching will begin at a threshold level of 5 percent CAGR and increase on a linear scale to full vesting of this third of the award at 15 percent CAGR.
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Up to one third of the award will be based on the cash conversion during each of the years during the performance period, calculated as cash flow from operating activities divided by net income reconciled to cash. One ninth of the total award will vest for any year, i.e. financial years 2011, 2012 and 2013, if cash conversion is at or above 70 percent.
The Board of Directors considers that long-term value creation will be reflected in the success of these targets, aligning executives with long-term shareholder interests. There will be no alloca�tion of shares if none of the threshold levels have been achieved, i.e. CAGR is less than 4 percent for net sales and less than 5 percent for operating income, and a 70 percent cash conversion has not been achieved during the performance period. The minimum matching at the threshold levels is 0. The maxi�mum number of performance matching shares - 4 shares, 6 shares and 9 shares respectively - will be allocated if the maximum performance levels of CAGR of 10 percent for net sales and 15 percent for operating income have been achieved, or exceeded, and a cash conversion of 70 percent or more has been achieved each year during the period.
Before the number of performance shares to be matched are finally determined, the Board of Directors shall examine whether the performance matching is reasonable con�sidering the Company's financial results and position, conditions on the stock market and other circumstances, and if not, as determined by the Board of Directors, reduce the number of performance shares to be matched to the lower number of shares deemed appropriate by the Board of Directors. When undertaking its evaluation of performance outcomes the Board of Directors will consider, in particular, the impact of larger acquisitions, divestitures, the creation of joint ventures and any other significant capital event on the three targets on a case by case basis.
Item 11.8 Transfer of treasury stock for the Executive Performance Stock Plan
a) Transfer of treasury stock to employees
Transfer of no more than 3,500,000 shares of series B in the Company may occur on the following terms and conditions.
� The right to acquire shares shall be granted to such persons within the Ericsson Group covered by the terms and conditions of the Executive Performance Stock Plan. Furthermore, subsidiaries within the Ericsson Group shall have the right to acquire shares, free of consideration, and such subsidiaries shall be obli�gated to immediately transfer, free of consideration, shares to their employees covered by the terms and conditions of the Executive Performance Stock Plan.
� The employee shall have the right to receive shares during the period when the employee is entitled to receive shares pursuant to the terms and condi�tions of the Executive Performance Stock Plan, i.e. during the period from November 2011 up to and including November 2015.
� Employees covered by the terms and conditions of the Executive Performance Stock Plan shall receive shares of series B in the Company, free of consideration.
b) Transfer of treasury stock on an exchange
The Company shall have the right to, prior to the Annual General Meeting in 2012, transfer no more than 900,000 shares of series B in the Company, in order to cover certain expenses, mainly social security payments. Transfer of the shares shall be effected on NASDAQ OMX Stockholm at a price within the at each time prevailing price interval for the share.
Item 11.9 Equity Swap Agreement with third party in relation to the Executive Performance Stock Plan
In the event that the required majority is not reached under item 11.8 above, the finan�cial exposure of the Executive Performance Stock Plan shall be hedged by the Company entering into an equity swap agreement with a third party, under which the third party shall, in its own name, acquire and transfer shares in the Company to employees covered by the Executive Performance Stock Plan.
Majority rules
The resolutions of the Annual General Meeting implementation of the three plans according to items 11.1, 11.4 and 11.7 above require that more than half of the votes cast at the General Meeting approve the proposals. The General Meeting's resolutions on transfers of treasury stock to employees and on an exchange accord�ing to items 11.2, 11.5 and 11.8 above, shall be adopted as one resolution for each of the three items, and require that shareholders representing at least nine-tenths of the votes cast as well as the shares represented at the General Meeting approve the proposals. A valid resolution in accordance with the proposals for an equity swap agreement under items 11.3, 11.6 and 11.9 above requires that more than half of the votes cast at the General Meeting approve the proposals.
Description of ongoing variable remuneration programs
The Company's ongoing variable remuneration programs are described in detail in the Annual Report 2010 in the note to the Consolidated Financial Statements, Note C29 and on the Company's website. The Remuneration Report published in the Annual Report outlines how the Company implements its remuneration policy in line with corporate governance best practice.
Item 12 The Board of Directors' proposal for resolution on transfer of treasury stock in relation to the resolutions on the Long-Term Variable Remuneration Programs 2007, 2008, 2009 and 2010
Background
The Extraordinary General Meeting 2007 as well as the Annual General Meetings 2008, 2009 and 2010 resolved on a right for the Company to transfer in total not more than 14,280,000*** shares of series B in the Company on a stock exchange to cover certain payments, mainly social security charges, that may occur in relation to the Long-Term Variable Remuneration Programs 2007, 2008, 2009 and 2010.
Each resolution has for legal reasons only been valid up to the following Annual General Meeting. Resolutions on transfer of treasury stock for the purpose of the above mentioned plan and programs have therefore been repeated at the subsequent Annual General Meeting.
In accordance with the resolutions on transfer of in total not more than 14,280,000 shares, 504,800 shares of series B have been transferred up to March 1, 2011.
*** - (Recalculated for the 2008 reverse split of shares 1:5)
Proposal
The Board of Directors proposes that the Annual General Meeting resolve that the Company shall have the right to transfer, prior to the Annual General Meeting 2012, not more than 13,775,200 shares of series B in the Company, or the lower number of shares of series B, which as per April 13, 2011 remains of the original 14,280,000 shares, for the purpose of covering certain payments, primarily social security charges that may occur in relation to the Long-Term Variable Remuneration Programs 2007, 2008, 2009 and 2010. Transfer of shares shall be effected on NASDAQ OMX Stockholm at a price within the, at each time, prevailing price interval for the share.
Majority rules
The resolution of the Annual General Meeting on a transfer of treasury stock requires that shareholders holding at least two-thirds of the votes cast as well as the shares represented at the Meeting vote in favor of the proposal.
Item 13 The Board of Directors' proposal for resolution on amendment of the Articles of Association
The Board of Directors proposes the Articles of Association (� 2) be amended to adjust the description of the object's of the Company to the Company's strategy to expand into new industry segments, such as governments, health industry, transport, utilities and mobile money.
Current wording:
� 2
The objects of the Company are to, directly or indirectly, develop, construct, produce, sell and deliver and in other forms carry on trade and other commercial business related to goods, products and other equipment as well as maintenance and other services within the area of telecommunication and radio technology and other technologies for transference, transmission and other communications of speech, data, images, text and other kinds of information and to carry on other activities consistent therewith.
Proposed wording:
� 2
The objects of the Company are to, directly or indirectly, develop, construct, produce, sell and deliver and in other forms carry on trade and other commercial business related to goods, products and other equipment as well as maintenance and other services based on telecommunication and radio technology and other technologies for transference, transmission and other communications of speech, data, images, text, other kinds of information and means of payment and to carry on other activities consistent therewith.
Shares and votes
There are in total 3,273,351,735 shares in the Company; 261,755,983 shares of series A and 3,011,595,752 shares of series B, corresponding to in total 562,915,558 votes. The Company's holding of treasury stock amounts to 70,509,138 shares of series B, corresponding to 7,050,913 votes.
Information at the Annual General Meeting
The Board of Directors and the President shall, if any shareholder so requests and the Board of Directors believes that it can be done without material harm to the Company, provide information regarding circumstances that may affect the assessment of an item on the agenda and circumstances that can affect the assessment of the Company's or its subsidiaries' financial situation and the Company's relation to other companies within the Group.
Documents
The complete proposals of the Nomination Committee with respect to Items 1 and 9 above are enclosed.
In respect of all other items, complete proposals are provided under the respective item in the Notice.
The Annual Report and the Auditor's Report as well as the Auditor's report regarding guidelines for compensation to senior management are available at the Company and posted on the Company's website www.ericsson.com. The documents will be sent to shareholders upon request.
Stockholm, March 2011
THE BOARD OF DIRECTORS
European Broadcasting Union, Switzerland: In tune
In a world first, the European Broadcasting Union joins forces with Ericsson to deliver an enhanced Eurovision experience on the mobile channel
The Eurovision Song Contest has been running for an impressive 54 years. It holds the accolade for one of the longest running television shows in the world. A total of 51 countries with over 1,000 entries have taken part in the contest over the last five decades, making it a truly international event.
With 125 million viewers and a dedicated legion of fans, Eurovision has a ready-made audience hungry for the latest news and updates on the contest. Appealing to youth culture is important and bringing information to fans on the move is an obvious plus point for the European Broadcasting Union (EBU), the organizers of the event.
Another level
Every year the EBU works with a technical partner and in 2010 it chose to team up with Ericsson to take its mobile content to the next level. Ericsson responded with a trial of the world�s first cloud-based mobile TV solution which was launched during the semi-finals and final of the contest.
The unique solution means that all the computing and calculations required to create a superior user experience now take place in the cloud. This removes the need for the user to download a Java client or an application to their mobile phone, allowing them to automatically enjoy an advanced site in a more user-friendly way.
Kurt Sill�n, Head of Customer Business Development, Business Unit Multimedia, Ericsson explains: "We provided an ability to follow the Eurovision song contest before, during and after the actual event, both on-demand and live � and we did it with a new level of user experience. Not only does the cloud-based solution connect directly through the web browser on the phone. Using the existing capability within the device, it automatically adapts to the browsers on 800 different handset models."
The software behind the solution which determines the browser type and controls the user experience has taken several years to develop. This is the first time Ericsson has applied this kind of functionality to a mobile TV user experience. The cloud-based solution guaranteed immediate global reach which was vital for a site like m.eurovision.tv with such an international following.
Going viral
The experiment has proven to be a great success. The site has been accessed by fans in Germany, Sweden, Russia, Norway, Austria, Argentina, Belgium, Turkey, the Netherlands, Greece and Australia.
EBU relied very much on word-of-mouth with promotion limited to the event website and a Facebook page. The approach paid off and numerous blogs and tweets from fans successfully spread the word, resulting in an impressive 41,000 page views. Statistics implied that users found what they were looking for too as the average session length came in at 17 minutes.
Nicoletta Iacobacci, Head of ITV & Crossmedia, European Broadcasting Union says: "We know that for our digital viewers the user experience is of paramount importance. The success of this trial has proven that a great experience can be provided on 3G phones with minimum expenditure. The buzz that it has created, attracting more than 40,000 people, confirms the value of this channel for us."
Reach for the skies
Ericsson was able to deliver the ground-breaking solution in record time, just three weeks after signing the agreement. Nicoletta Iacobacci adds: "Working with Ericsson has been easy. We specified our needs and they delivered in every area. For us it has been a win-win situation: maximum value at minimum cost, both in terms of time and money."
The success of the experiment with EBU shows that a superior mobile experience can be provided by 3G mobile phones more easily than ever before, highlighting the massive potential for growth in this area. This world first could be replicated in a wide range of scenarios for broadcasters, media players or telecom operators. It makes a quality user experience more widely available in a simple and cost efficient way.
About European Broadcasting Union, Switzerland
With its headquarters in Geneva the European Broadcasting Union is the largest association of national broadcasters in the world. It provides cooperation between broadcasters and facilitates the exchange of audiovisual content. The organization is at the forefront of new media. It promotes open technical standards and interoperability for the benefit of broadcasters and consumers, exploring the opportunities presented by new technologies.
The Eurovision Song Contest has been running for an impressive 54 years. It holds the accolade for one of the longest running television shows in the world. A total of 51 countries with over 1,000 entries have taken part in the contest over the last five decades, making it a truly international event.
With 125 million viewers and a dedicated legion of fans, Eurovision has a ready-made audience hungry for the latest news and updates on the contest. Appealing to youth culture is important and bringing information to fans on the move is an obvious plus point for the European Broadcasting Union (EBU), the organizers of the event.
Another level
Every year the EBU works with a technical partner and in 2010 it chose to team up with Ericsson to take its mobile content to the next level. Ericsson responded with a trial of the world�s first cloud-based mobile TV solution which was launched during the semi-finals and final of the contest.
The unique solution means that all the computing and calculations required to create a superior user experience now take place in the cloud. This removes the need for the user to download a Java client or an application to their mobile phone, allowing them to automatically enjoy an advanced site in a more user-friendly way.
Kurt Sill�n, Head of Customer Business Development, Business Unit Multimedia, Ericsson explains: "We provided an ability to follow the Eurovision song contest before, during and after the actual event, both on-demand and live � and we did it with a new level of user experience. Not only does the cloud-based solution connect directly through the web browser on the phone. Using the existing capability within the device, it automatically adapts to the browsers on 800 different handset models."
The software behind the solution which determines the browser type and controls the user experience has taken several years to develop. This is the first time Ericsson has applied this kind of functionality to a mobile TV user experience. The cloud-based solution guaranteed immediate global reach which was vital for a site like m.eurovision.tv with such an international following.
Going viral
The experiment has proven to be a great success. The site has been accessed by fans in Germany, Sweden, Russia, Norway, Austria, Argentina, Belgium, Turkey, the Netherlands, Greece and Australia.
EBU relied very much on word-of-mouth with promotion limited to the event website and a Facebook page. The approach paid off and numerous blogs and tweets from fans successfully spread the word, resulting in an impressive 41,000 page views. Statistics implied that users found what they were looking for too as the average session length came in at 17 minutes.
Nicoletta Iacobacci, Head of ITV & Crossmedia, European Broadcasting Union says: "We know that for our digital viewers the user experience is of paramount importance. The success of this trial has proven that a great experience can be provided on 3G phones with minimum expenditure. The buzz that it has created, attracting more than 40,000 people, confirms the value of this channel for us."
Reach for the skies
Ericsson was able to deliver the ground-breaking solution in record time, just three weeks after signing the agreement. Nicoletta Iacobacci adds: "Working with Ericsson has been easy. We specified our needs and they delivered in every area. For us it has been a win-win situation: maximum value at minimum cost, both in terms of time and money."
The success of the experiment with EBU shows that a superior mobile experience can be provided by 3G mobile phones more easily than ever before, highlighting the massive potential for growth in this area. This world first could be replicated in a wide range of scenarios for broadcasters, media players or telecom operators. It makes a quality user experience more widely available in a simple and cost efficient way.
About European Broadcasting Union, Switzerland
With its headquarters in Geneva the European Broadcasting Union is the largest association of national broadcasters in the world. It provides cooperation between broadcasters and facilitates the exchange of audiovisual content. The organization is at the forefront of new media. It promotes open technical standards and interoperability for the benefit of broadcasters and consumers, exploring the opportunities presented by new technologies.
Ericsson closes the Acquisition of Nortel's Multiservice Switch business
High level of data experience in key locations
� Customers gain a stable, committed partner
� The Multiservice Switch business will operate under the Ericsson brand as of today
Ericsson (NASDAQ:ERIC) has completed the asset purchase agreement to acquire Nortel's Multiservice Switch business. This acquisition gives Ericsson access to a strong product portfolio and installed base in the data segment while ensuring the supply of the platform for the recently acquired CDMA and GSM units.
"We are gaining a solid business with a significant installed base and technology that complements our existing Ericsson portfolio. In key locations around the globe, we grow our data capability with experienced and talented people." said Rima Qureshi, senior vice president and head of business unit CDMA Mobile Systems.
An important part of the CDMA ecosystem, the Multiservice Switch business offers the sale and support of data networks and switching platforms for core networks within the wireless and carrier voice divisions, previously acquired from Nortel. The Multiservice switches, to be called PPX henceforth, serve a valuable need for a multiplicity of services that the backbone network provides today for our customers.
Today's closing follows the announcement on September 25, 2010, that Ericsson was entering into an asset purchase agreement for substantially all of the assets of Nortel's Multiservice Switch Business.
The former Nortel Multiservice Switch staff will be integrated into the Ericsson group in business unit CDMA Mobile Systems over the coming months and will work under the Ericsson brand effective today. Former Nortel customers gain a stable partner committed to the ongoing evolution of their networks and the assurance of a seamless business transition.
SEB Enskilda acted as Ericsson's sole financial advisor in the transaction.
Notes to editors:
Photos of Rima Qureshi:
www.ericsson.com/ericsson/press/photos/rima_qureshi.shtml
Previously announced information on Ericsson's acquisitions of Nortel assets:
http://www.ericsson.com/news/1446864
www.ericsson.com/thecompany/press/releases/2010/04/1406030
www.ericsson.com/thecompany/press/releases/2009/11/1357032
www.ericsson.com/thecompany/press/releases/2009/07/1330882
www.ericsson.com/thecompany/press/releases/2010/04/1406030
www.youtube.com/ericssonpress#p/u/7/D3yDHV9O_5o
On Ericsson Multiservice Switches
Ericsson's multimedia content is available at the broadcast room:
www.ericsson.com/broadcast_room
� Customers gain a stable, committed partner
� The Multiservice Switch business will operate under the Ericsson brand as of today
Ericsson (NASDAQ:ERIC) has completed the asset purchase agreement to acquire Nortel's Multiservice Switch business. This acquisition gives Ericsson access to a strong product portfolio and installed base in the data segment while ensuring the supply of the platform for the recently acquired CDMA and GSM units.
"We are gaining a solid business with a significant installed base and technology that complements our existing Ericsson portfolio. In key locations around the globe, we grow our data capability with experienced and talented people." said Rima Qureshi, senior vice president and head of business unit CDMA Mobile Systems.
An important part of the CDMA ecosystem, the Multiservice Switch business offers the sale and support of data networks and switching platforms for core networks within the wireless and carrier voice divisions, previously acquired from Nortel. The Multiservice switches, to be called PPX henceforth, serve a valuable need for a multiplicity of services that the backbone network provides today for our customers.
Today's closing follows the announcement on September 25, 2010, that Ericsson was entering into an asset purchase agreement for substantially all of the assets of Nortel's Multiservice Switch Business.
The former Nortel Multiservice Switch staff will be integrated into the Ericsson group in business unit CDMA Mobile Systems over the coming months and will work under the Ericsson brand effective today. Former Nortel customers gain a stable partner committed to the ongoing evolution of their networks and the assurance of a seamless business transition.
SEB Enskilda acted as Ericsson's sole financial advisor in the transaction.
Notes to editors:
Photos of Rima Qureshi:
www.ericsson.com/ericsson/press/photos/rima_qureshi.shtml
Previously announced information on Ericsson's acquisitions of Nortel assets:
http://www.ericsson.com/news/1446864
www.ericsson.com/thecompany/press/releases/2010/04/1406030
www.ericsson.com/thecompany/press/releases/2009/11/1357032
www.ericsson.com/thecompany/press/releases/2009/07/1330882
www.ericsson.com/thecompany/press/releases/2010/04/1406030
www.youtube.com/ericssonpress#p/u/7/D3yDHV9O_5o
On Ericsson Multiservice Switches
Ericsson's multimedia content is available at the broadcast room:
www.ericsson.com/broadcast_room
Tuesday, November 16, 2010
Ericsson - Aircel's largest 3G partner in India
Ericsson to deploy 3G network in six of Aircel's market areas or circles
Millions to be connected through mobile broadband with Aircel
Mobile broadband solution includes radio, core, transmission and related services
Aircel, India's leading mobile operator, part of Maxis Communications Berhad, Malaysia, has awarded Ericsson (NASDAQ: ERIC) a contract to roll out a 3G/HSPA network across six out of its 13 circles or geographic market areas. These six circles currently serve more than 100 million subscribers and Ericsson will be Aircel's largest partner for 3G implementation. Aircel will offer its customers services such as video telephony, mobile broadband, mobile TV, video on demand and others including music downloads, video tones, instant messaging and online gaming.
For many people, broadband has changed from being "nice to have" to being an absolute necessity in modern-day life - for conducting business, managing a household or as a means of entertainment. Likewise, the mobile phone has become one of the main tools for nearly 5 billion people in the world to communicate. Along with mobile broadband, it enables whole new ways of keeping in touch, accessing services and working on the move.
Sandip Das, CEO of Maxis says, "Ericsson and Maxis, have a long history of infrastructure partnership starting up from 2G through to 3G and possibly future technologies, across our subsidiaries and allied companies operating in Malaysia, India, Indonesia and Sri Lanka. We respect them and look forward to their continued support to our group's commitment to providing quality networks and advanced services to our customers".
Hans Vestberg, President & CEO, Ericsson says, "Maxis group and Aircel is a preferred partner for us. We greatly value our strategic association and the India 3G agreement further reinforces this partnership".
Gurdeep Singh, COO of Aircel says: "For many people in India connected for the first time, 3G mobile broadband will bring completely new types of services and benefits. We are confident that with this partnership, we will benefit from Ericsson's global expertise of 3G deployments, and will be able to offer our customers a world-class 3G experience.
Gowton Achaibar, head of Ericsson India, says: "We are extremely excited to partner with Aircel for the implementation of its 3G network. We foresee 3G brings economic advantages and increased social interaction in the country. With the advent of 3G, the mobile phone will not just be about convenience and satisfying a basic need for communication; it will also provide access to services such as healthcare, education and information, supporting people's livelihoods."
Under the agreement with Aircel, Ericsson will provide core, radio and transmission network equipment as well as related services such as network rollout, network technology and consulting, radio network optimization and support services. The mobile broadband network will include the latest multi-standard radio base station, RBS6000, and the MSC Server Blade Cluster, which will drastically boost the capacity of the network and evolve it into an IP network. The framework contract will be implemented from 2010 to 2012. Deliveries and deployment are underway. Aircel and Ericsson made the first successful 3G call last week in Chennai and Coimbatore.
The six Aircel circles Ericsson provides 3G technology in are: Tamil Nadu Bihar; Orissa; Jammu Kashmir; North East; and Assam.
Millions to be connected through mobile broadband with Aircel
Mobile broadband solution includes radio, core, transmission and related services
Aircel, India's leading mobile operator, part of Maxis Communications Berhad, Malaysia, has awarded Ericsson (NASDAQ: ERIC) a contract to roll out a 3G/HSPA network across six out of its 13 circles or geographic market areas. These six circles currently serve more than 100 million subscribers and Ericsson will be Aircel's largest partner for 3G implementation. Aircel will offer its customers services such as video telephony, mobile broadband, mobile TV, video on demand and others including music downloads, video tones, instant messaging and online gaming.
For many people, broadband has changed from being "nice to have" to being an absolute necessity in modern-day life - for conducting business, managing a household or as a means of entertainment. Likewise, the mobile phone has become one of the main tools for nearly 5 billion people in the world to communicate. Along with mobile broadband, it enables whole new ways of keeping in touch, accessing services and working on the move.
Sandip Das, CEO of Maxis says, "Ericsson and Maxis, have a long history of infrastructure partnership starting up from 2G through to 3G and possibly future technologies, across our subsidiaries and allied companies operating in Malaysia, India, Indonesia and Sri Lanka. We respect them and look forward to their continued support to our group's commitment to providing quality networks and advanced services to our customers".
Hans Vestberg, President & CEO, Ericsson says, "Maxis group and Aircel is a preferred partner for us. We greatly value our strategic association and the India 3G agreement further reinforces this partnership".
Gurdeep Singh, COO of Aircel says: "For many people in India connected for the first time, 3G mobile broadband will bring completely new types of services and benefits. We are confident that with this partnership, we will benefit from Ericsson's global expertise of 3G deployments, and will be able to offer our customers a world-class 3G experience.
Gowton Achaibar, head of Ericsson India, says: "We are extremely excited to partner with Aircel for the implementation of its 3G network. We foresee 3G brings economic advantages and increased social interaction in the country. With the advent of 3G, the mobile phone will not just be about convenience and satisfying a basic need for communication; it will also provide access to services such as healthcare, education and information, supporting people's livelihoods."
Under the agreement with Aircel, Ericsson will provide core, radio and transmission network equipment as well as related services such as network rollout, network technology and consulting, radio network optimization and support services. The mobile broadband network will include the latest multi-standard radio base station, RBS6000, and the MSC Server Blade Cluster, which will drastically boost the capacity of the network and evolve it into an IP network. The framework contract will be implemented from 2010 to 2012. Deliveries and deployment are underway. Aircel and Ericsson made the first successful 3G call last week in Chennai and Coimbatore.
The six Aircel circles Ericsson provides 3G technology in are: Tamil Nadu Bihar; Orissa; Jammu Kashmir; North East; and Assam.
Smartphone and applications essential to the modern mother
Applications are only for teenagers, right? Smartphones are only for techie geeks, right? Social media via mobile broadband is only for digital natives, right? Wrong, wrong and wrong again. Modern telecoms technology is helping to tumble walls that once divided generations. The connected world means having access to everything. Just ask mother-of-six Maria Bivesj�, who manages her life by mobile phone.
One of the certainties of growing up used to be that you were interested in things that your parents weren't � especially technology. One of the certainties of getting older used to be that your children were interested in technology that you didn�t really understand � or even care about.
The mobile phone, internet and mobile broadband � and all associated functionalities and applications � have created a world where parents and children use, and are proficient in, the same technology.
While Maria has always been interested in technology, it was her son's diagnosis of a chronic illness that resulted in her making the mobile phone an essential tool in her everyday life. Quite simply, she needed to be instantly reachable.
But Stockholm-based Maria soon realized that she could use the device for much more and literally manage her life via the mobile phone. As a busy mother, full-time school teacher and boxing enthusiast, that�s a lot of management. This approach soon evolved into trying new functionalities and applications.
"With six children living at home, my days are disrupted," she says. "I want to be efficient all the time. Thanks to my mobile phone, I can keep track of everything from parents' meetings to where the children are.
"Many think that the information flow causes greater stress, but for me it's the opposite. I�m calmer in the knowledge that I have a tool to help me. But I use my smartphone at least as much for the entertainment value; I play games, test fun mobile apps, and log in to sites like Facebook and Spotify."
Maria is hungry for more apps, as long as they are affordable.
"I'd like to see an application for booking and ordering services, such as a library app that could tell you when the book you are looking for becomes available; or a drugstore app that allows you to order medicine and collect it at the store or distribution point.
"I like finding my way through the app jungle, but I�d never buy one for more than SEK 35 (about USD 5). I want them to be cheap because then you can afford to test them and discard them."
Stories like Maria's show why applications are important to Ericsson. Embracing the connected world is central to Ericsson's prediction of an all-communicating world of more than 50 billion connected devices by 2020. Almost everyone and everything can potentially be connected, whether it is machine-to-machine (M2M), person-to-machine or person-to-person.
Applications are now a crucial element in the traditional telecoms industry. Ericsson's applications store, eStore, was launched in late 2009. It is an open platform, with programs for all operating systems, allowing all operators to create their own apps stores.
Aside from being an applications store, eStore is also a community for developers.
With Maria Bivesj� providing living proof of the power of the mobile phone and mobile applications to directly change lives and cross the generation gap, it seems like an all-communicating world with more than 50 billion connected devices will become a reality.
One of the certainties of growing up used to be that you were interested in things that your parents weren't � especially technology. One of the certainties of getting older used to be that your children were interested in technology that you didn�t really understand � or even care about.
The mobile phone, internet and mobile broadband � and all associated functionalities and applications � have created a world where parents and children use, and are proficient in, the same technology.
While Maria has always been interested in technology, it was her son's diagnosis of a chronic illness that resulted in her making the mobile phone an essential tool in her everyday life. Quite simply, she needed to be instantly reachable.
But Stockholm-based Maria soon realized that she could use the device for much more and literally manage her life via the mobile phone. As a busy mother, full-time school teacher and boxing enthusiast, that�s a lot of management. This approach soon evolved into trying new functionalities and applications.
"With six children living at home, my days are disrupted," she says. "I want to be efficient all the time. Thanks to my mobile phone, I can keep track of everything from parents' meetings to where the children are.
"Many think that the information flow causes greater stress, but for me it's the opposite. I�m calmer in the knowledge that I have a tool to help me. But I use my smartphone at least as much for the entertainment value; I play games, test fun mobile apps, and log in to sites like Facebook and Spotify."
Maria is hungry for more apps, as long as they are affordable.
"I'd like to see an application for booking and ordering services, such as a library app that could tell you when the book you are looking for becomes available; or a drugstore app that allows you to order medicine and collect it at the store or distribution point.
"I like finding my way through the app jungle, but I�d never buy one for more than SEK 35 (about USD 5). I want them to be cheap because then you can afford to test them and discard them."
Stories like Maria's show why applications are important to Ericsson. Embracing the connected world is central to Ericsson's prediction of an all-communicating world of more than 50 billion connected devices by 2020. Almost everyone and everything can potentially be connected, whether it is machine-to-machine (M2M), person-to-machine or person-to-person.
Applications are now a crucial element in the traditional telecoms industry. Ericsson's applications store, eStore, was launched in late 2009. It is an open platform, with programs for all operating systems, allowing all operators to create their own apps stores.
Aside from being an applications store, eStore is also a community for developers.
With Maria Bivesj� providing living proof of the power of the mobile phone and mobile applications to directly change lives and cross the generation gap, it seems like an all-communicating world with more than 50 billion connected devices will become a reality.
MBNL network consolidation project completed by Ericsson
Ericsson consolidated 12,000 shared sites in MBNL's UK network
T-Mobile and Three customers now get far greater 3G coverage
New business model shows how operators can benefit
Ericsson (NASDAQ:ERIC) announces the delivery of more than 12,000 consolidated 3G sites for Mobile Broadband Network Ltd (MBNL), bringing more coverage and capacity for Three and T-Mobile UK customers. Thanks to this active network consolidation project, all 3G sites, transmitters, base station equipment and backhaul connected to the operator's core networks are now fully configured for high speed mobile broadband access.
MBNL is the network joint-venture between Three and Everything Everywhere, the company that runs Orange and T-Mobile in the UK and today's landmark follows three years of intensive effort and investment by MBNL and its partners.
Alongside the customer benefits, Three and Everything Everywhere will see significant savings and environment benefits because of network sharing. This has included the switching off of more than 5,000 sites - more than 2,000 of which have already been fully decommissioned - as part of a project recognized as the largest and most successful integration of two live networks to have occurred anywhere in the world.
Graham Payne, Managing Director, MBNL said "This was an exciting, challenging and ultimately hugely rewarding project for the team at MBNL. My thanks to all who have worked so hard to deliver this fantastic network, special thanks go to our key partners who are rightly proud of their roles in this project".
Under the five-year managed service contract announced in February 2009, Ericsson is the primary service provider for the project and was responsible for network design and deployment, building of sites, capacity management, equipment swaps and vital upgrades. Millions of man-hours were committed to improve speeds and coverage for Three and T-Mobile customers. The consolidation work started in February 2009 and was completed in October 2010. This was done while keeping the two networks running smoothly during the project, which also saw Ericsson deliver the all-important cost and efficiency savings.
Magnus Mandersson, Head of Business Unit Global Services, Ericsson, said: "This was an unparalleled and quite complex managed services and systems integration consolidation project. Its success shows the benefits to partners of network sharing and reflects a new business model that the industry can learn a great deal from. All the partners involved in this network sharing project - not least T-Mobile and Three customers - have all emerged as winners. I'm proud of our success and look forward to supporting and advising MBNL as their managed services partner."
T-Mobile and Three customers now get far greater 3G coverage
New business model shows how operators can benefit
Ericsson (NASDAQ:ERIC) announces the delivery of more than 12,000 consolidated 3G sites for Mobile Broadband Network Ltd (MBNL), bringing more coverage and capacity for Three and T-Mobile UK customers. Thanks to this active network consolidation project, all 3G sites, transmitters, base station equipment and backhaul connected to the operator's core networks are now fully configured for high speed mobile broadband access.
MBNL is the network joint-venture between Three and Everything Everywhere, the company that runs Orange and T-Mobile in the UK and today's landmark follows three years of intensive effort and investment by MBNL and its partners.
Alongside the customer benefits, Three and Everything Everywhere will see significant savings and environment benefits because of network sharing. This has included the switching off of more than 5,000 sites - more than 2,000 of which have already been fully decommissioned - as part of a project recognized as the largest and most successful integration of two live networks to have occurred anywhere in the world.
Graham Payne, Managing Director, MBNL said "This was an exciting, challenging and ultimately hugely rewarding project for the team at MBNL. My thanks to all who have worked so hard to deliver this fantastic network, special thanks go to our key partners who are rightly proud of their roles in this project".
Under the five-year managed service contract announced in February 2009, Ericsson is the primary service provider for the project and was responsible for network design and deployment, building of sites, capacity management, equipment swaps and vital upgrades. Millions of man-hours were committed to improve speeds and coverage for Three and T-Mobile customers. The consolidation work started in February 2009 and was completed in October 2010. This was done while keeping the two networks running smoothly during the project, which also saw Ericsson deliver the all-important cost and efficiency savings.
Magnus Mandersson, Head of Business Unit Global Services, Ericsson, said: "This was an unparalleled and quite complex managed services and systems integration consolidation project. Its success shows the benefits to partners of network sharing and reflects a new business model that the industry can learn a great deal from. All the partners involved in this network sharing project - not least T-Mobile and Three customers - have all emerged as winners. I'm proud of our success and look forward to supporting and advising MBNL as their managed services partner."
Managed services in 29 countries for TeliaSonera International Carrier
The three-year extension contract covers 29 countries and adds field maintenance in Russia
Agreement enables operator to focus on business and customers
New deal continues seven-year partnership in Managed Services
TeliaSonera International Carrier has renewed and expanded its multicountry Managed Services contract with Ericsson (NASDAQ:ERIC), building on a deal signed in 2003 and expanded in 2005. Ericsson will now perform field operation services for the operator's voice and data networks, built on multivendor equipment. Among the larger countries covered are Austria, France, Germany, the UK and the US; the expanded deal also involves taking over field maintenance in Russia.
Operators, carriers, service and content providers, and corporations around the world use TeliaSonera International Carrier's 27,000 miles of fiber. As well as the voice network, Ericsson will be responsible for field operation services in 29 countries covering TeliaSonera International Carrier's IP, transmission, media, and dense wavelength division multiplexing technology (DWDM) network. DWDM is an optical technology used to increase bandwidth over existing fiber optic networks.
Robert Puskaric, head of Region Northern Europe and Central Asia, says: "This is a milestone for Ericsson as we will be managing field maintenance for one operator in 29 countries. The contract demonstrates Ericsson's leadership in managed services and how we continue to meet operators' specific needs."
Ericsson will begin managing TeliaSonera International Carrier's services in 28 countries on December 1, 2010, and in Russia on February 1, 2011. The markets covered are: Austria, Belgium, Bulgaria, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hong Kong, Hungary, Ireland, Italy, Latvia, Lithuania, the Netherlands, Norway, Poland, Romania, Russia, Singapore, Slovakia, Spain, Sweden, Switzerland, Turkey, the UK, Ukraine, and the USA.
Agreement enables operator to focus on business and customers
New deal continues seven-year partnership in Managed Services
TeliaSonera International Carrier has renewed and expanded its multicountry Managed Services contract with Ericsson (NASDAQ:ERIC), building on a deal signed in 2003 and expanded in 2005. Ericsson will now perform field operation services for the operator's voice and data networks, built on multivendor equipment. Among the larger countries covered are Austria, France, Germany, the UK and the US; the expanded deal also involves taking over field maintenance in Russia.
Operators, carriers, service and content providers, and corporations around the world use TeliaSonera International Carrier's 27,000 miles of fiber. As well as the voice network, Ericsson will be responsible for field operation services in 29 countries covering TeliaSonera International Carrier's IP, transmission, media, and dense wavelength division multiplexing technology (DWDM) network. DWDM is an optical technology used to increase bandwidth over existing fiber optic networks.
Robert Puskaric, head of Region Northern Europe and Central Asia, says: "This is a milestone for Ericsson as we will be managing field maintenance for one operator in 29 countries. The contract demonstrates Ericsson's leadership in managed services and how we continue to meet operators' specific needs."
Ericsson will begin managing TeliaSonera International Carrier's services in 28 countries on December 1, 2010, and in Russia on February 1, 2011. The markets covered are: Austria, Belgium, Bulgaria, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hong Kong, Hungary, Ireland, Italy, Latvia, Lithuania, the Netherlands, Norway, Poland, Romania, Russia, Singapore, Slovakia, Spain, Sweden, Switzerland, Turkey, the UK, Ukraine, and the USA.
China Unicom and Ericsson in managed services contract
Ericsson wins managed services contract with China Unicom, serving five major cities of China's eastern Anhui province
Ericsson takes full responsibility for base station sites, fixed network and transmission in a three-year integrated field maintenance agreement
Allows China Unicom to cut its costs and provide improved services for its subscribers
The longstanding partnership between China Unicom and Ericsson (NASDAQ: ERIC) passed a landmark as Anhui Unicom - a provincial company of China Unicom - signed a three-year integrated field maintenance agreement with Ericsson, making Ericsson its largest managed services partner in Anhui Province. Ericsson will take care of the maintenance work for base station sites, as well as fixed network and transmission.
This is the largest managed services contract between the two to date. By outsourcing field maintenance, more time is freed up for the operator to focus on its existing and potential customers.
Li Chao, General Manager of Anhui Unicom, says: "Anhui Unicom and Ericsson have been strategic partners for many years and we have a very high opinion of Ericsson's expertise in all aspects. We believe that Ericsson will extend its successful managed services business model and world-leading capabilities to Anhui and help us improve our network efficiency, lower operational cost, and fulfil our commitment to the consumers."
Mats H Olsson, President of Ericsson China & North East Asia, says: "China represents the largest telecom and internet market in the world with some 800 million mobile subscribers and 420 million internet users. It also has the largest telecom infrastructure, with more than 320,000 3G base stations. We hope that by becoming Anhui Unicom's largest managed services supplier we will set a benchmark for field maintenance services throughout China Unicom."
Anhui is the eighth most populated province in China and has a mobile penetration of around 50 percent. The field maintenance agreement between Ericsson and Anhui Unicom covers five major cities of China's eastern Anhui province including Wuhu, Xuancheng, Bengbu, Chuzhou, and the province capital city Hefei.
In the past, Ericsson has been one of the major suppliers to Anhui Unicom and its largest GSM supplier. Ericsson has also long-term cooperation with the customer in professional services, including network rollout, network performance improvement, learning services and spare-part management.
Ericsson takes full responsibility for base station sites, fixed network and transmission in a three-year integrated field maintenance agreement
Allows China Unicom to cut its costs and provide improved services for its subscribers
The longstanding partnership between China Unicom and Ericsson (NASDAQ: ERIC) passed a landmark as Anhui Unicom - a provincial company of China Unicom - signed a three-year integrated field maintenance agreement with Ericsson, making Ericsson its largest managed services partner in Anhui Province. Ericsson will take care of the maintenance work for base station sites, as well as fixed network and transmission.
This is the largest managed services contract between the two to date. By outsourcing field maintenance, more time is freed up for the operator to focus on its existing and potential customers.
Li Chao, General Manager of Anhui Unicom, says: "Anhui Unicom and Ericsson have been strategic partners for many years and we have a very high opinion of Ericsson's expertise in all aspects. We believe that Ericsson will extend its successful managed services business model and world-leading capabilities to Anhui and help us improve our network efficiency, lower operational cost, and fulfil our commitment to the consumers."
Mats H Olsson, President of Ericsson China & North East Asia, says: "China represents the largest telecom and internet market in the world with some 800 million mobile subscribers and 420 million internet users. It also has the largest telecom infrastructure, with more than 320,000 3G base stations. We hope that by becoming Anhui Unicom's largest managed services supplier we will set a benchmark for field maintenance services throughout China Unicom."
Anhui is the eighth most populated province in China and has a mobile penetration of around 50 percent. The field maintenance agreement between Ericsson and Anhui Unicom covers five major cities of China's eastern Anhui province including Wuhu, Xuancheng, Bengbu, Chuzhou, and the province capital city Hefei.
In the past, Ericsson has been one of the major suppliers to Anhui Unicom and its largest GSM supplier. Ericsson has also long-term cooperation with the customer in professional services, including network rollout, network performance improvement, learning services and spare-part management.
Next stop for 4G/LTE - Denmark
Danes will soon enjoy data access with unmatched speeds and all types of latency-sensitive and bandwidth-demanding services over the mobile network
Denmark's incumbent operator TDC signs commercial 4G/LTE contract with Ericsson including the complete Evolved Packet Core and the LTE radio solution
The full-scope contract is the first 4G/LTE deal including managed services
Denmark's leading operator TDC is about to upgrade to 4G and has chosen Ericsson (NASDAQ:ERIC) to supply and manage the nationwide network. The contract builds on the existing strategic partnership between the two. Under the deal, Ericsson will roll out a complete 4G/LTE solution - including radio access and core network equipment - as well as managed services. This is Ericsson's first full-scope managed service contract for an LTE/Evolved Packet Core (EPC) network. Danish people will benefit from enhanced experiences when accessing data-rich services with unmatched speeds. Latency and bandwidth will be greatly improved with the new LTE network.
Jess Ibsen, CTO of TDC says: "Providing an amazing experience for our subscribers is our highest priority. Therefore, it's vital that our transition to the new LTE technology is as smooth and fast as possible. Choosing Ericsson is a continuation and expansion of TDC's strategic cooperation with Ericsson. With that, TDC is still committed to deliver quality experiences for all users in TDC's mobile network. We're sure that it will be a seamless transition and that Ericsson will provide the best LTE experience for our customers."
"It's a historic day for us - not only for our business in Denmark but also from an international perspective because TDC is an important customer for Ericsson," says Lars Tofft, Head of Ericsson Denmark and Norway. "By extending our strategic partnership with TDC we have received the chance to prove our leading technology and managed services capabilities to support the successful launch and operation of their new LTE network."
The contract includes radio access network with RBS 6000 series, a complete Evolved Packet Core solution as well as the full scope of managed services. The roll out of the network starts immediately.
To date, Ericsson has signed commercial LTE contracts with seven major global operators. There are two live commercial LTE networks (TeliaSonera in Sweden and Norway, and MetroPCS in the US) in the world and Ericsson is the main supplier for both networks.
Ericsson has been driving open standards and has had the highest impact on the released LTE specifications. Ericsson expects to hold 25 percent of all essential patents for LTE, making it the largest patent holder in the industry.
Because the LTE network is tailor-made for handling data transfer, it also embraces new types of services. Connected cameras, music players, cars and even electricity networks will be part of everyday life in the near future. Ericsson envisions a world of more than 50 billion connections, including people, places and devices, by 2020.
Denmark's incumbent operator TDC signs commercial 4G/LTE contract with Ericsson including the complete Evolved Packet Core and the LTE radio solution
The full-scope contract is the first 4G/LTE deal including managed services
Denmark's leading operator TDC is about to upgrade to 4G and has chosen Ericsson (NASDAQ:ERIC) to supply and manage the nationwide network. The contract builds on the existing strategic partnership between the two. Under the deal, Ericsson will roll out a complete 4G/LTE solution - including radio access and core network equipment - as well as managed services. This is Ericsson's first full-scope managed service contract for an LTE/Evolved Packet Core (EPC) network. Danish people will benefit from enhanced experiences when accessing data-rich services with unmatched speeds. Latency and bandwidth will be greatly improved with the new LTE network.
Jess Ibsen, CTO of TDC says: "Providing an amazing experience for our subscribers is our highest priority. Therefore, it's vital that our transition to the new LTE technology is as smooth and fast as possible. Choosing Ericsson is a continuation and expansion of TDC's strategic cooperation with Ericsson. With that, TDC is still committed to deliver quality experiences for all users in TDC's mobile network. We're sure that it will be a seamless transition and that Ericsson will provide the best LTE experience for our customers."
"It's a historic day for us - not only for our business in Denmark but also from an international perspective because TDC is an important customer for Ericsson," says Lars Tofft, Head of Ericsson Denmark and Norway. "By extending our strategic partnership with TDC we have received the chance to prove our leading technology and managed services capabilities to support the successful launch and operation of their new LTE network."
The contract includes radio access network with RBS 6000 series, a complete Evolved Packet Core solution as well as the full scope of managed services. The roll out of the network starts immediately.
To date, Ericsson has signed commercial LTE contracts with seven major global operators. There are two live commercial LTE networks (TeliaSonera in Sweden and Norway, and MetroPCS in the US) in the world and Ericsson is the main supplier for both networks.
Ericsson has been driving open standards and has had the highest impact on the released LTE specifications. Ericsson expects to hold 25 percent of all essential patents for LTE, making it the largest patent holder in the industry.
Because the LTE network is tailor-made for handling data transfer, it also embraces new types of services. Connected cameras, music players, cars and even electricity networks will be part of everyday life in the near future. Ericsson envisions a world of more than 50 billion connections, including people, places and devices, by 2020.
Netia has sights set on Polish households
Netia, Poland's second-largest fixed network operator, recently extended its managed-services contract with Ericsson by three years. By putting its network operation in reliable hands, the operator can focus on its major asset: private households.
Poland is now fully mobile. The penetration rate of mobile services is as high as 120 percent, because people are signing up for multiple subscriptions. But rather than competing for new mobile subscribers, Netia has chosen a different path. It is going after fixed broadband household consumers, a market that for many years was monopolized.
Miroslaw Godlewski, CEO of Netia, says: "We have been very active in the development of this newly-available market and the result is that there has been a fast increase of broadband services in our country. The speeds are rising and prices for broadband access are also dropping quickly � which makes it more affordable, so more people are signing up for services."
The operator recently joined the trend of bundling services. Instead of just selling broadband as before, Netia is now packaging its services with unlimited calls subscriptions and other fixed voice packages. Some companies have already started upselling the third service, TV, though not always IPTV, and bundling with other technologies, such as satellite. Netia is getting ready to bundle three services and offering it to more and more users.
Netia has been the biggest beneficiary of the deregulation of the market. In the past three years, it has taken a 30 percent market share of net additions and has been the fastest growing company in terms of providing broadband services to new users. This also means that Netia has been growing revenue � which is not very common among telecom companies.
So what type of support does Netia need from Ericsson?
Godlewski says: "Part of the support is already happening due to the big outsourcing contract that we just signed with Ericsson. Being a fast growing company and juggling a number of priorities, it's crucial for us to be able to hand over the more stable part of the business to reliable hands. Helping us with some of the dilemmas � how, when, and in what way we should move into the next generation network � and then helping us making that transformation will be vital. For a local company like Netia, it's not obvious how this has been done at other companies. It�s very beneficial for us to get help from a global company like Ericsson."
Poland is now fully mobile. The penetration rate of mobile services is as high as 120 percent, because people are signing up for multiple subscriptions. But rather than competing for new mobile subscribers, Netia has chosen a different path. It is going after fixed broadband household consumers, a market that for many years was monopolized.
Miroslaw Godlewski, CEO of Netia, says: "We have been very active in the development of this newly-available market and the result is that there has been a fast increase of broadband services in our country. The speeds are rising and prices for broadband access are also dropping quickly � which makes it more affordable, so more people are signing up for services."
The operator recently joined the trend of bundling services. Instead of just selling broadband as before, Netia is now packaging its services with unlimited calls subscriptions and other fixed voice packages. Some companies have already started upselling the third service, TV, though not always IPTV, and bundling with other technologies, such as satellite. Netia is getting ready to bundle three services and offering it to more and more users.
Netia has been the biggest beneficiary of the deregulation of the market. In the past three years, it has taken a 30 percent market share of net additions and has been the fastest growing company in terms of providing broadband services to new users. This also means that Netia has been growing revenue � which is not very common among telecom companies.
So what type of support does Netia need from Ericsson?
Godlewski says: "Part of the support is already happening due to the big outsourcing contract that we just signed with Ericsson. Being a fast growing company and juggling a number of priorities, it's crucial for us to be able to hand over the more stable part of the business to reliable hands. Helping us with some of the dilemmas � how, when, and in what way we should move into the next generation network � and then helping us making that transformation will be vital. For a local company like Netia, it's not obvious how this has been done at other companies. It�s very beneficial for us to get help from a global company like Ericsson."
Saturday, November 13, 2010
Ericsson Application Awards � Code for cash!
Interested in winning �15,000? Develop an Android� app using at least one API from Ericsson Labs and you will have the chance.
During October, Ericsson is launching its Ericsson Application Awards, where the winner will take a full �15,000. This is a global competition, which is open for both students and small/medium sized companies, with up to 100 employees. Students and companies compete in two different categories. So why not take the chance to use your superior coding skills to win some hard cash?
What do I have to do?
The objective of the competition is to develop an application based on the Android� platform (web or native) that makes use of at least one of the API�s from Ericsson Labs. The application should also address the theme of the competition, which is "Connected Things". Besides this, a working application prototype should be created, it should be an innovative solution and it should also have business potential.
Prices and deadlines
Besides the first price of �15,000 and phones from Sony Ericsson, the rest of the prices are also quite substantial. The runner up will get �10,000 and phones from Sony Ericsson, and �5,000 will be given to the project finishing in the third place. The prize money will be shared equally among the registered team members.
The latest date for team registration is February 28, 2011, but for those teams registering already now there will be stage competitions with nice prices going on each month under 2010. The last date for submissions of applications is March 31st. The 1st and 2nd place winners from both the student and company categories will be awarded at the Ericsson Application Awards ceremony in June 2011.
Find out more about the Ericsson Application Awards by visiting the competition web site!
During October, Ericsson is launching its Ericsson Application Awards, where the winner will take a full �15,000. This is a global competition, which is open for both students and small/medium sized companies, with up to 100 employees. Students and companies compete in two different categories. So why not take the chance to use your superior coding skills to win some hard cash?
What do I have to do?
The objective of the competition is to develop an application based on the Android� platform (web or native) that makes use of at least one of the API�s from Ericsson Labs. The application should also address the theme of the competition, which is "Connected Things". Besides this, a working application prototype should be created, it should be an innovative solution and it should also have business potential.
Prices and deadlines
Besides the first price of �15,000 and phones from Sony Ericsson, the rest of the prices are also quite substantial. The runner up will get �10,000 and phones from Sony Ericsson, and �5,000 will be given to the project finishing in the third place. The prize money will be shared equally among the registered team members.
The latest date for team registration is February 28, 2011, but for those teams registering already now there will be stage competitions with nice prices going on each month under 2010. The last date for submissions of applications is March 31st. The 1st and 2nd place winners from both the student and company categories will be awarded at the Ericsson Application Awards ceremony in June 2011.
Find out more about the Ericsson Application Awards by visiting the competition web site!
Friday, November 12, 2010
Sony Ericsson reports third quarter 2010 results
Q3 Highlights:
Turnaround continues with third consecutive quarter of profits
Continued success of smartphone portfolio keeps ASP at high level
Launch of Xperia� models in new markets, including China and the U.S.
The consolidated financial summary for Sony Ericsson Mobile Communications AB (Sony Ericsson) for the third quarter ended September 30, 2010 is as follows:
Q3 2009
Q2 2010
Q3 2010
Number of units shipped (million)
14.1
11.0
10.4
Sales (Euro m.)
1,619
1,757
1,603
Gross margin (%)
16%
28%
30%
Operating income (Euro m.)
-193
36
63
Operating margin (%)
-12%
2%
4%
Restructuring charges (Euro m.)
2
32
4
Operating income excl. restructuring charges (Euro m.)
-191
68
67
Operating margin excl. restructuring charges (%)
-12%
4%
4%
Income before taxes (IBT) (Euro m.)
-199
31
62
IBT excl. restructuring charges (Euro m.)
-198
63
66
Net income (Euro m.)
-164
12
49
Average selling price (Euro)
114
160
154
Bert Nordberg, President & CEO of Sony Ericsson commented, �Our third consecutive quarter of profitable results illustrates that Sony Ericsson�s overall performance is stabilising. Our strategy to focus on the smartphone segment is succeeding and smartphones now comprise more than 50% of our total sales. During the quarter, we launched our Android-based Xperia� models in new markets, such as China and the U.S., and it is our ambition to become the global number one handset provider on the Android platform.�
Income before taxes for the quarter excluding restructuring charges was a profit of Euro 66 million following the positive effects of the transformation programme. Net income for the quarter was Euro 49 million, an increase of Euro 213 million year-on-year and of Euro 37 million sequentially.
The gross margin percentage was 30% and almost doubled year-on-year, reflective of the company turnaround.
Units shipped in the quarter were 10.4 million, a decrease of 26% year-on-year and down 5% sequentially. Average selling price (ASP) in the quarter remained at a high level of Euro 154, a 34% increase year-on-year and a decrease of 4% sequentially, due to product and geographical mix. As a result, sales for the quarter were Euro 1,603 million, essentially flat year-on-year and a 9% decrease sequentially.
Sony Ericsson�s net cash position as of September 30, 2010 was Euro 538 million. The negative cash flow from operating activities was Euro 54 million, mainly due to payments during the quarter related to the transformation programme.
Market share in unit base for the quarter remained flat sequentially and is estimated to be approximately 4%. The value market share is estimated to be approximately 6%.
Sony Ericsson maintains a forecast of slight growth in units in the global handset market in 2010.
The liquid identity is a registered trademark of Sony Ericsson Mobile Communications AB. Xperia� is a trademark of Sony Ericsson Mobile Communications AB. Sony is a registered trademark of Sony Corporation. Ericsson is a registered trademark of Telefonaktiebolaget LM Ericsson. Any rights not expressly granted herein are reserved and subject to change without prior notice.
EDITOR�S NOTES:
Financial statements and additional information:
Financial statements:
Consolidated income statement
Consolidated income statement � isolated quarters
Consolidated balance sheet
Consolidated statement of cash flows
Consolidated statement of cash flows � isolated quarters
Net sales by market area by quarter
Sony Ericsson is a 50:50 joint venture by Sony and Ericsson established in October 2001, with global corporate functions located in London and operations in all major markets. Sony Ericsson�s vision is to become the industry leader in Communication Entertainment; where new styles of communicating through the internet and social media, become entertainment. Sony Ericsson offers exciting consumer experiences through phones, accessories, content and applications.
Turnaround continues with third consecutive quarter of profits
Continued success of smartphone portfolio keeps ASP at high level
Launch of Xperia� models in new markets, including China and the U.S.
The consolidated financial summary for Sony Ericsson Mobile Communications AB (Sony Ericsson) for the third quarter ended September 30, 2010 is as follows:
Q3 2009
Q2 2010
Q3 2010
Number of units shipped (million)
14.1
11.0
10.4
Sales (Euro m.)
1,619
1,757
1,603
Gross margin (%)
16%
28%
30%
Operating income (Euro m.)
-193
36
63
Operating margin (%)
-12%
2%
4%
Restructuring charges (Euro m.)
2
32
4
Operating income excl. restructuring charges (Euro m.)
-191
68
67
Operating margin excl. restructuring charges (%)
-12%
4%
4%
Income before taxes (IBT) (Euro m.)
-199
31
62
IBT excl. restructuring charges (Euro m.)
-198
63
66
Net income (Euro m.)
-164
12
49
Average selling price (Euro)
114
160
154
Bert Nordberg, President & CEO of Sony Ericsson commented, �Our third consecutive quarter of profitable results illustrates that Sony Ericsson�s overall performance is stabilising. Our strategy to focus on the smartphone segment is succeeding and smartphones now comprise more than 50% of our total sales. During the quarter, we launched our Android-based Xperia� models in new markets, such as China and the U.S., and it is our ambition to become the global number one handset provider on the Android platform.�
Income before taxes for the quarter excluding restructuring charges was a profit of Euro 66 million following the positive effects of the transformation programme. Net income for the quarter was Euro 49 million, an increase of Euro 213 million year-on-year and of Euro 37 million sequentially.
The gross margin percentage was 30% and almost doubled year-on-year, reflective of the company turnaround.
Units shipped in the quarter were 10.4 million, a decrease of 26% year-on-year and down 5% sequentially. Average selling price (ASP) in the quarter remained at a high level of Euro 154, a 34% increase year-on-year and a decrease of 4% sequentially, due to product and geographical mix. As a result, sales for the quarter were Euro 1,603 million, essentially flat year-on-year and a 9% decrease sequentially.
Sony Ericsson�s net cash position as of September 30, 2010 was Euro 538 million. The negative cash flow from operating activities was Euro 54 million, mainly due to payments during the quarter related to the transformation programme.
Market share in unit base for the quarter remained flat sequentially and is estimated to be approximately 4%. The value market share is estimated to be approximately 6%.
Sony Ericsson maintains a forecast of slight growth in units in the global handset market in 2010.
The liquid identity is a registered trademark of Sony Ericsson Mobile Communications AB. Xperia� is a trademark of Sony Ericsson Mobile Communications AB. Sony is a registered trademark of Sony Corporation. Ericsson is a registered trademark of Telefonaktiebolaget LM Ericsson. Any rights not expressly granted herein are reserved and subject to change without prior notice.
EDITOR�S NOTES:
Financial statements and additional information:
Financial statements:
Consolidated income statement
Consolidated income statement � isolated quarters
Consolidated balance sheet
Consolidated statement of cash flows
Consolidated statement of cash flows � isolated quarters
Net sales by market area by quarter
Sony Ericsson is a 50:50 joint venture by Sony and Ericsson established in October 2001, with global corporate functions located in London and operations in all major markets. Sony Ericsson�s vision is to become the industry leader in Communication Entertainment; where new styles of communicating through the internet and social media, become entertainment. Sony Ericsson offers exciting consumer experiences through phones, accessories, content and applications.
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