Ericsson’s strong second half results in net profit surge for 2010

Ericsson reported an eight per cent rise in its fourth-quarter 2010 sales to SEK 62.8 billion (US$9.5 billion), while net profits surged to SEK 4.4 billion from SEK0.7 billion a year earlier. Sales growth returned during the second half of the year.Ericsson building web

Net profit for the 2010 increased 172 per cent to SEK 11.2 billion mainly due to improvements in earnings in Sony Ericsson and less restructuring charges. However, revenues for the whole year were down by two per cent to SEK 203.3 billion. Sales for the full year for comparable units, adjusted for currency exchange rate effects and hedging, decreased by seven per cent.

Sales in Networks increased 14 per cent year-over-year and 40 per cent sequentially, primarily driven by increased demand for mobile broadband and investments in 2G expansions in China. While the supply of components has normalised during the quarter, the company warned that it is still not fully meeting the increased demand on certain mobile broadband products.

Global Services sales decreased by one per cent year-over-year and increased 20 per cent sequentially. The year-over-year decline is a result of lower levels of network rollout following the industry wide component shortage earlier in the year as well as a negative impact from a strong Swedish currency. Managed services grew five per cent year-on- year, while Multimedia sales recovered and grew three per cent year-over-year and 50 per cent sequentially with positive development within revenue management.

Airtel launches 3G in Karnataka

India’s Airtel has launched its 3G network, with coverage initially in the southern Karnataka state, whose capital is the technology hub of Bangalore. The operator expects to offer 3G services in 40 cities by March across all of its 13 licensed areas, and expand the services to 1,500 cities and towns within a year.

These 13 telecom circles also constitute 68 per cent of Airtel’s revenue market share. This includes key metros such as Delhi, Mumbai, Bengaluru, Chennai and Hyderabad, which account for 21 per cent of all data traffic in the country and are expected to have the strongest uptake of 3G services.Airtel web

As none of the mobile networks hold 3G licenses covering all 22 of India’s licensed circles, the private operators are also in talks about network sharing where they have coverage gaps.

Airtel is the third private network to launch 3G services in India, after Reliance Communications and Tata Teleservices. The two state-owned networks, BSNL and MTNL launched their 3G networks before the private licences were auctioned off.

Last year, Airtel awarded 3G network contracts to Ericsson, Huawei and Nokia Siemens Networks.

UAE to introduce MNP by March

TRA, the UAE’s telecom regulator is reported to have confirmed that the country’s two mobile networks will launch mobile number portability (MNP) by the end of March.

"The market can’t take a third operator," the TRA’s director general, Mohamed Al Ghanim is quoted as saying in response to whether the introduction of MNP in the UAE was a precursor to the licensing of a third player. "[MNP] will stimulate competition between the two operators because operators will try to hold onto their customers," Al Ghanim is quoted as adding.

Schmidt to step down as CEO as Google turns a new Page

Google CEO Eric Schmidt is stepping down in April, and co-founder Larry Page is taking over, the company said before its earnings statement on January 20.

“Google also announced that its board of directors had approved certain changes to Google’s management team,” the company said in a filing with the Securities and Exchange Commission. “Larry Page, Google’s co-founder and president of products, will become Google’s chief executive officer, effective April 4, 2011.

“Eric Schmidt, Google’s current chief executive officer, will continue as the chairman of the board of directors and will serve as Google’s executive chairman.”

As executive chairman, Google said, Schmidt will act as an advisor to Page and Sergey Brin, Google’s other co-founder and president of technology.

Schmidt will also assist with Page’s transition to CEO.Google founders web

Larry Page, left, shall assume the role of CEO April 4, while Schmidt, centre, shall stay on as executive chairman

Schmidt said: “We’ve been talking about how best to simplify our management structure and speed up decision making for a long time. By clarifying our individual roles we’ll create clearer responsibility and accountability at the top of the company. In my clear opinion, Larry is ready to lead and I’m excited about working with both him and Sergey for a long time to come.”

Schmidt said Page would now lead product development and technology strategy, his greatest strengths, and starting from April 4 he will take charge of the day-to-day operations as Google’s CEO.

In its earnings report, Google revealed that for Q410 the company generated revenues of US$8.44 billion, 26 per cent higher than the previous year. Full year revenues exceeded US$29 billion.

Google-owned sites generated revenues of US$5.67 billion, or 67 per cent of total revenues during the fourth quarter. Partner sites (AdSense) generated US$2.5 billion (30 per cent of total revenues).

International revenues were US$4.38 billion, representing 52 per cent of total revenues in Q4.

Menatelecom extends WiMAX managed services contract with Motorola

Menatelecom has announced the extension of its managed services contract with Motorola, an agreement that was first signed in July 2007 for two years to plan, deploy and manage Menatelecom’s nationwide 802.16e-based mobile WiMAX and IP Multimedia Subsystem (IMS) network in Bahrain.

The latest extension will enable Menatelecom to continue the expansion of its WiMAX network with even further capabilities, delivering a wireless service to consumers and enterprises with not only speeds of up to 18Mb, but also an advanced voice and nomadic broadband data service.Menatelecom MD web

Left to right: Abdulhakeem Alkhayyat, MD and CEO of KFH-Bahrain, and Abdul Razak Jawahery, executive manager at KFH

With Motorola’s WiMAX solution, Menatelecom’s infrastructure will be compatible with technology that can be embedded in numerous future devices, including laptops and mobile phones.

“Since the launch of its WiMAX services, Menatelecom has had the unique opportunity of significantly contributing towards the development of Bahrain’s technological advances and make a mark on a global scale while at the same time creating a prosperous telecom business,” commented Abdul Razak Jawahery, executive manager at Kuwait Finance House – Bahrain, and vice chairman & MD of Menatelecom.”

Menatelecom’s solutions include high-speed Internet access with unlimited downloads with dedicated speeds up to 150 Mbps in addition to VPN solutions; carrier pre-select service; international private leased circuit; multi-protocol label switching and call centre hosting.