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Ericsson's Network Equipment Market Share Declines In 2012

Swedish telecom equipment major LM Ericsson Telephone Co. (ERIC) on Friday announced preliminary market share estimates for 2012, noting that its share for the network equipment market declined to 24 percent from last year's 27 percent.

The decline mainly reflected lower market share for mobile network equipment of somewhat 35 percent in 2012 from 38 percent in 2011.

The company noted that the market share was negatively impacted by the ongoing technology shift in China where investments are moving from GSM to other technology areas where Ericsson has limited presence.

During 2011, Ericsson introduced a wider definition of the equipment market reflecting its research & development investments during the past years. This new definition includes the key segments Radio, IP and Transport as well as Core.

Meanwhile, the company maintained its share of the global installed base of radio base stations at 40 percent.

Ericsson's market share for LTE is twice as big as the largest competitor, measured in shipments for the full year 2012, making it the world's largest supplier of LTE.

In telecom services, internal market data indicates that the company increased its market share to 13 percent, benefited by strong year for Global Services, making it larger than any competitor in a fragmented market.

In Stockholm, Ericsson shares are currently trading at 80.50 Swedish kronor, down 0.10 kronor or 0.12 percent.

by RTT Staff Writer

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