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Ericsson: When in Doubt, Do It Yourself

10Meters News Service

August 31, 2001 – Ericsson is hoping to jump-start next-generation mobile communications development with a fast-track licensing strategy.

Announced today and open for business tomorrow, Ericsson Mobile Platforms, a new company that will offer complete 2.5G and 3G technology platforms to manufacturers of mobile phones and other wireless devices.

Ericsson said the new company is aimed at accelerating the wireless industry by offering its technology portfolio and "know-how" to other manufacturers.

"We see the handset market going through the same transformation as the PC industry did earlier. In the near future, few companies will deliver platform chip-sets, but many companies will deliver handsets," said Jan Uddenfeldt, Senior Vice President, Technology.

Ericsson technology platforms will include complete component specifications, printed circuit board layouts and software, and the company will offer support and service for customizing the platforms.

"We will provide instant access to cutting-edge technology, making it possible for all mobile phone and wireless device manufacturers to bring new advanced products to the market quicker and more cost efficiently," Tord Wingren, president of Ericsson Mobile Platforms, said.

This week one of Sweden's largest mobile phone operators, Tele2, postponed the launch of its GPRS service, citing a lack of GPRS phones. GPRS is considered 2.5G technology since it allows always-on Internet access. Currently, only Ericsson and Motorola offer GPRS handsets. Nokia plans to release its version in early fall.

Analysts say 3G telephony, which will offer multimedia capabilities, will take three to four years to hit the mainstream.

Ericsson Mobile Platforms will be headquartered in Lund, Sweden. It will remain in the Ericsson group, along with the Bluetooth licensing business, when Ericsson's mobile phone business is merged into the joint venture with Sony, scheduled for October 1, 2001.


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