Ericsson ConsumerLab: M-commerce in Latin America

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Ericsson ConsumerLab Report: M-Commerce in Latin America shows that the majority of people in Latin America who are not using m-commerce services today would be interested in using such services in the future. Convenience and security are important drivers for m-commerce in the region. Lack of trust in the services, perceived low network quality and a general knowledge gap among consumers are barriers to overcome in securing greater spread of m-commerce.

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Ericsson ConsumerLab: M-commerce in Latin America

  1. 1. M-COMMERCE INLATIN AMERICAJune 2013
  2. 2. ContentsEricsson ConsumerLab has more than 15 years experienceof studying people’s behaviors and values, including theway they act and think about ICT products and services.Ericsson ConsumerLab provides unique insights on marketand consumer trends.Ericsson ConsumerLab gains its knowledge through aglobal consumer research program based on interviews with100,000 individuals each year, in more than 40 countries and15 megacities – statistically representing the views of1.1 billion people. Both quantitative and qualitative methodsare used, and hundreds of hours are spent with consumersfrom different cultures.To be close to the market and consumers, EricssonConsumerLab has analysts in all regions whereEricsson is present, which gives a thorough globalunderstanding of the ICT market and business models.All ConsumerLab reports can be found atwww.ericsson.com/consumerlabA BOOMING CONSUMER MARKET STILL VERY MUCH A ‘CASHONOMY’ THE IMPORTANCE OF CONSUMER CONTROL FAVORABLE CONDITIONS FOR M-COMMERCE STRUGGLERS AND ACHIEVERSSAFETY AND CONVENIENCE: KEY DRIVERS SCEPTICISM AND KNOWLEDGE BARRIERS THE CULTURAL LEGACY OF DISTRUSTUNLOCKING FUTURE POTENTIAL 345678910112 ERICSSON CONSUMERLAB M-COMMERCE IN LATIN AMERICAArgentina21% 30% 31% 28% 31%BRazil Chile MexicoFigure 1: Current Use of M-commerceM-commerceMobile bankingMobile walletMobile shoppingSource: Ericsson ConsumerLab, Analytical Platform, 2012 Base: Internet users (Argentina, Brazil, Chile, Colombia, Mexico)12% 20% 20% 20% 18%7% 13% 11% 10% 12%11% 15% 15% 14% 17%IntroductionA wide range of mobile financial services – mobile pay-ments, remittances and banking, exist in Latin Americabut the market is largely fragmented and current use islow. However, smartphone penetration in Latin America isincreasing rapidly and consumer interest in m-commerce isat an all-time high.Ericsson ConsumerLab has conducted a study into thepossibilities of widespread m-commerce adoption in LatinAmerica through interviews and studies in Brazil, Argentina,Chile, Mexico and Colombia. With this report, we examineconsumer behavior and customs, the key drivers and bar-riers to using mobile financial services, and how m-com-merce can gain ground.Colombia
  3. 3. A boomingconsumer marketLatin America is a diverse continent, both culturally andeconomically. On one hand, there is great prosperity, but onthe other, a unique set of challenges. The region is character-ized by wide-ranging consumer profiles, representing varyingsocial conditions and a deep division between the richestand the poorest. The markets covered in this study regularlyproduce resilient annual GDP growth and reached nearly 3.5percent in the last year alone.Social mobility is common in the region. Over the pastdecade, Latin America’s middle class grew 50 percent - theequivalent of 50 million consumers. The middle class nowrepresents 30 percent of the population. Regardless, manymillions of people have been left behind, with poverty levelsranging from 15 percent in Chile, to 50 percent in Mexico.> Convenience Is a Key Driverof M-commerceThe main driver for m-commerce among LatinAmericans is convenience. Depending on eco-nomic status and financial inclusion, the con-venience m-commerce can bring is expressedin different ways. For unbanked consumers, inthis report referred to as ‘strugglers’, the mainbenefit would be avoiding time-consuming lineswhen paying bills. For consumers who already arebanked, ‘achievers’, m-commerce would meana more flexible everyday life, where payments,shopping and other transfers can be handledfrom anywhere at any time.> Security and Control Essentialfor Latin AmericansLatin America can be described as a ‘cashono-my’, where cash is still the most common meansof payment for consumers. A majority of themhandle their economy exclusively in cash. Whilecash is seen as convenient and easy to use, themajor drawback is safety concerns. The verythought of not having to handle cash, or evencards, is seen as a key benefit of m-commerce,however hard to grasp since it still is a novelconcept. Control over one’s own economy is alsoimportant for consumers; many of which keepdetailed budgets as well as record of expenses.Having complete control over spending is impor-tant, especially among ‘strugglers’ with lessereconomic margins.> Widespread Consumer Distrust inInstitutions and Network PerformanceOverall consumer distrust in institutions is anobstacle in Latin America. Consumers are inher-ently cautious and question the ability of themobile channel to deliver reliable and securem-commerce solutions. The consumer perceptionthat m-commerce transactions can be interruptedor disturbed by an unreliable Internet connectionis a common fear. It is therefore paramount to im-prove network reliability, and customer relations,to build consumer trust. Another major barrier islack of knowledge. In order for consumers to fullyembrace m-commerce services, education andvalidation from independent and trusted partiesare key factors. Government regulations to protectthe consumer are also imperative to gain trust.key findingsERICSSON CONSUMERLAB M-COMMERCE IN LATIN AMERICA 3Figure 2: The Growth of the Middle Class in Latin America and the Caribbean, 1995-2010Source: The World Bank, Economic Mobility and the Rise of The Latin American Middle Class, 2012Poor (US$0-US$4 a day)Middle class and rich (>US$10 a day)Vulnerable (US$4-US$10 a day)1995Middle Class Growth(US$10-US$50 a day)201039%46%23%33%36%21%41%million people2003 2009million people
  4. 4. Still very mucha ‘cashonomy’Figure 3: Financial Inclusion in Latin America61%48%of the population is unbankedof the labor force is informally employedAn Economy Built on CashIn most markets in the study, ongoing regulation is tak-ing place with the objective of financial inclusion. However,Latin America is still very much a ‘cashonomy’. Wheneverand wherever possible, consumers in the region choose topay with cash, regardless of socioeconomic status. Infor-mal workers receive their salary in cash and formal workersoften use an ATM to withdraw most or all of their salary onpay day. Many save money at home rather than relying on abank account. This is especially common among low incomeconsumers.In many places, cash is the only acceptable means of pay-ment. Consumers simply need to carry cash with them tomake sure they are able to pay for a taxi fare, grocery shop-ping at a local store, or when paying for certain goods orservices. It’s not uncommon for household bills to be paidin cash too, especially when it comes to rent.The Tangibility of CashUsing cash is a natural part of people’s lives, and littlethought is given to why. Among consumers, cash is consid-ered a fast, convenient and transparent means of paymentthat provides a great sense of control over one’s spending.Some stores that accept debit and credit cards implementtwo queues for the customers – one queue for card pay-ments and one for cash payments. Naturally, consumersoften find the cash queue faster.Just as different discounts can be linked to specific creditcards, paying in cash can also result in a discounted price infor example Brazil, Argentina and Colombia.Safety Issues a ConcernA big disadvantage of using cash is safety concerns. Crimi-nality is a major concern in the everyday life in all markets inthe study, and many have first-hand experience of robberies.Thus, consumers have developed individual strategies thatincrease their sense of safety when forced to handle largesums of cash. Keeping the money hidden close to the bodyis one way of feeling more safe. Conspicuous ConsumptionStatus purchases such as flat screen TVs, high-end smart-phones and clothes from international brands, are prevalentespecially among middle class consumers. It is a way forpeople to show others that they have accomplished a cer-tain economic status. In order to afford it, large purchaseslike these are often bought in installments, and it is notunusual to be on multiple plans at the same time.The bigger dream in people’s lives seem to revolve aroundaspirations less conspicuous, such as buying your ownhome, a new car, or perhaps even travelling or workingabroad.“When I buy food I always pay cash withthe money I get from an ATM. That’sbecause I have a hard time realizinghow much I spend when I use debit.”— Male, 30, Argentina4 ERICSSON CONSUMERLAB M-COMMERCE IN LATIN AMERICASources: World Bank Global Financial Inclusion Database, 2012and International Labour Office, Labour overview, 2012
  5. 5. The importance ofconsumer controlControl Over One’s Economy ImportantPeople stress the importance of being in control over theirown economy. Many wage-earners begin each month bysettling all monthly bills, mortgage payments and rent. Thisprovides an overview of the means available for the rest ofthe month.Forgetting to pay bills on time is a major concern, mostlydue to the inconvenience of having to physically go to thebank or to the bill recipient to pay in case of a missed duedate. This is prevalent in several of the countries in the study.Detailed Accounting of Household EconomyThe need for control manifests itself in the form of detailedaccounting of household incomes and expenditures. Budg-eting is often quite formal and it is common to use note-books or Excel sheets.Control over one’s finances is important to the averageLatin American. Many people choose to keep records ofpayments to avoid future problems. Payment verificationsare stored for a long time as evidence in case the payment ischallenged or for tax reasons. Payment verification via e-mailor SMS is considered favorable.Concerns Over SpendingMany consumers, independent of economic status, find itdifficult to control spending if funds are available. Despitedifficulty to control spending, middle and high-income earn-ers appreciate constant access to their money. However,low-income earners with more strained economies do notfind high accessibility as attractive.Cash gives people a high degree of control over expenses,but limits accessibility of funds in case of need. On the otherhand, cards and m-commerce solutions make funds readilyavailable, but increase the risk of overspending.Cautiousness to DebtFear of debt, both from private loans and credit cards, iscommonplace, especially among low-income consumers.Loans are considered both risky and costly, and many con-sumers strive to repay loans as quickly as possible.The purpose of loans differs between higher and lowerincome consumers. Low-income consumers take loansprimarily to cover unforeseen expenses or to cover dailyexpenses when their income fluctuates. Middle and high-income consumers use loans for larger expenses, such asbuying a home or a car. Both consumer groups howeverconsider buying a home the most legitimate reason to takea loan.”If a bill is lying on the table in theliving room I’m afraid I will forgetabout it. So I put reminders on themobile phone and on the fridge.Once I forgot to pay for my medicalinsurance. The next month I hadto pay for two months, it wasa lot.” — Female, 43, ArgentinaERICSSON CONSUMERLAB M-COMMERCE IN LATIN AMERICA 5
  6. 6. Many Consumers Lack Accessto Financial ServicesA large portion of the Latin American population is left out-side of the financial system, receiving their incomes in cashand lacking bank affiliations, savings accounts, and credit ordebit cards.At the same time, mobile penetration is high and smart-phone adoption is increasing rapidly. In 2017, the smart-phone penetration in the region is estimated to be over 60percent*.The low financial inclusion combined with the high mobilepenetration is opening up opportunities for m-commerce inLatin America. Among consumers currently excluded fromthe financial system, but connected through their mobilephones, m-commerce can provide an attractive alternativeto traditional financial services.From E- to M-commerceExperience of online shopping, for items such as clothes,electronics goods, and even food, is common among theregion’s achievers. The online marketplace Mercadolibre,the largest e-commerce ecosystem in Latin America, is verypopular in the region.Migration from e- to m-commerce is evident across thisvast region. Seven percent of Mercadolibre’s sales is via themobile channel. PayPal recently reported that 15 percent ofsales in Brazil and Mexico was carried out via mobile chan-nels last year, and that this figure is increasing all the time.Groupon, a deal-of-the-day website, reports that betweenfive and ten percent of sales is done via mobile in the region.Searching for Deals and DiscountsIt is common for a great number of consumers to seek outdeals and discounts at stores, supermarkets and shoppingmalls. The degree to which consumers do this naturally cor-responds to their financial situation – the more affluent theless price hunting.Consumers are interested in using their mobile phone forthis purpose. Two out of three consumers in the study saythey are interested in getting good deals and save moneyusing special offers or coupons on their mobile.favorable conditionsfor m-commerce74%Sources: World Bank Global Financial Inclusion Database, 2012 and Ericsson ConsumerLab, Analytical Platform, 2012*Source: Source: Pyramid Telecom Insider Nov 2012Figure 4: Low Financial Inclusion, High Mobile Penetration6 ERICSSON CONSUMERLAB M-COMMERCE IN LATIN AMERICA145%134%152%106%87%24%15%25%20% 20%22%29%23%10% 13%33%56%42%30% 27%160140120100806040200Argentina Brazil Chile Colombia Mexico66% 42% 44%MobilebankingMobilewalletMobileshoppingSource: Ericsson ConsumerLab, Analytical Platform, 2012Base: Non-users of M-commerce(Argentina, Brazil, Chile, Colombia, Mexico)Have/Use Bank ProductMobile PenetrationSmartphone PenetrationHave/Use Credit Cardwho are not using m-commerce today are interested instarting to use at least one m-commerce service on theirmobile phone.
  7. 7. Strugglersand achieversTwo Key Segments for M-commerceSix out of ten in Latin America are unbanked, either becausethey do not have the possibility to open an account or sim-ply don’t have any interest in affiliating themselves with a fi-nancial institution. Their income is received in cash or check,sometimes on a day to day basis, and can also fluctuate inthe course of a year. For this consumer group, referred to as‘strugglers’ in this report, cash is the only means of pay-ment, since they rarely have access to or interest in otherfinancial services. Cash is considered a transparent andeasy means of payment, and a way to control one’sspending.Four out of ten have access to bank products, such as sav-ings accounts, debit and credit cards, even though far fromall fully take advantage of these services. These consumersconstitute another important segment for m-commerce thatis expanding continously in the region: ‘achievers’. They areoften formal workers, receiving a fixed salary on a monthlybasis, deposited into an account. Credit cards and payingin installments are common among achievers, who often aremiddle or high income earners, and have a higher educationlevel than strugglers. They have the economic margins allow-ing for leisure consumption to a higher degree, and embracenew technology they can benefit from in their daily lives.Both Segments can Benefit from M-commerceMobile penetration is high among both consumer groups,making them potential users of m-commerce services. De-pending on specific needs, key barriers and drivers differ tosome extent between the groups.One concrete example of an m-commerce service thatwould be appreciated by achievers is mobile payments,while strugglers would find mobile remittances convenientand easy.Source: Ericsson ConsumerLab, M-Commerce in Latin America, 2013Figure 5: Two different segments for m-commerceTwo Segments for M-commerceERICSSON CONSUMERLAB M-COMMERCE IN LATIN AMERICA 7> Low income, sometimes fluctuating> Informal workers, ‘independents’> Unbanked/underbanked> Cash is only means of payment> Occasionally use credit, but don’t like it> Feature phone or low-end smartphone> Low awareness and use of new technology> Higher income, monthly salary> Formal workers, self-employed> Banked/financially included> Prefer cards over cash> Frequently use credit, and like it> High-end smartphone> Embrace new technologySTRUGGLERS ACHIEVERSAcknowledging the economic development of the region also means acknowledging the different conditionsunder which consumers live and work. On one hand there is the rising middle class, already in or rapidlymoving towards financial inclusion, and on the other hand there are the majority of not yet financiallyincluded consumers.
  8. 8. SAFETY ANDCONVENIENCE:KEY DRIVERSThe main driver for m-commerce is convenience, primarily manifested in not having to stand in time-consuminglines and being able to spend, send and receive money from any location, any time of the day or night.Safety Important for ConsumersAmong strugglers, the main advantage of m-commerce isthe possibility of avoiding handling large amounts of cash,for example when paying household bills at remote loca-tions. Achievers have a similar viewpoint, perceiving m-commerce as a way of getting rid of the necessity to carrycash or even plastic cards in public. One Brazilian consumerinterviewed in the study expresses it as: “Nowadays anyonecan steal your card, and your password. But with the mobilephone a criminal will not know that you have money in there.”Less Waiting Is a Major AdvantageWaiting in line is a major hassle in all markets. Many hoursare spent at banks, ATMs and locations where consumersare paying their bills, taking up valuable time from their liveson a regular basis. Spending time in queues to pay bills alsogenerates a sense of insecurity, as consumers then need tocarry large sums of cash in a crowd of people.The desire to avoid queues is especially apparent amongstrugglers, who almost exclusively use cash to manage theireconomy.M-commerce Allows FlexibilityOn the other hand, achievers appreciate the possibility tohandle their economy anywhere at any time of the day ornight. To be able to carry out payments while travelling, com-muting or from the comfort of one’s home, and pay bills withshort due dates after banking hours are a couple of concreteand significant upsides of m-commerce. In many areas inLatin America, bank offices are rather scarce, whereasmobile operator agents are more common.Providing ControlAnother aspect of m-commerce is that it can provide asense of control, something that is of great importance toLatin American consumers. Keeping track of transactions,past and future bill payments and purchases is commonin Latin America, and many keep detailed budgets as wellas records of expenses. The mobile phone can act as afacilitator in this regard, by letting users save verificationsand receipts in a digital format, receive notifications whentransactions are being made, facilitating bill payments ontime and acting as a budgeting tool.Education, Trust and TransparencyHowever, to fully tend to the strong consumer need of beingin control when using m-commerce services, it’s importantthat transactions are transparent to make consumers feelabsolutely reassured. One example of this could be instantverifications when money is withdrawn, inserted or in otherways transferred.Another key prerequisite that needs to be fulfilled is trust,both in the provider and in the service itself. Consumer faithin service providers to supply reliable and secure Internetconnections is low.Most importantly, Latin American consumers need to beeducated on the possibilities of m-commerce, since thegeneral knowledge of m-commerce services still is very lowin the region, especially among strugglers.“I value time in my life, not wasting time doing things. Anything that makes me save timeis very valuable for me. I quit paying my bills in cash and passed them to debit because Idon’t want queues in my life.”— Male, 26, ArgentinaSafetyNo queuingMobilityIndependenceControlIndependenceNo queuingSafetyMobilityControlFigure 8: Drivers for m-commerceSTRUGGLERS ACHIEVERSSource: Ericsson ConsumerLab, M-Commerce in Latin America, 2013Drivers for M-commerce8 ERICSSON CONSUMERLAB M-COMMERCE IN LATIN AMERICA
  9. 9. SCEPTICISM ANDKNOWLEDGE BARRIERSCurrent adoption of m-commerce services is low in Latin America. The main barriers are lack of trust in the ser-vice, lack of network quality and a general lack of knowledge about m-commerce services among consumers.Lack of Security and Network Reliabilityare Major ConcernsNetwork reliability is the most important barrier amongachievers, and it’s also crucial for strugglers. Currentpoor coverage and network stability in all markets are keyconcerns that impact how consumers regard m-commerceservices. The perception that m-commerce transactions canbe interrupted or disturbed by unreliable Internet connec-tion is a common fear which makes consumers reluctant toadopt m-commerce services.Other barriers connected to security concerns are fear oflosing one’s mobile phone and fear of someone hackingone’s account. Consumers are worried they will not be ableto get their money back in case of a crime, a concern that istightly connected to a current lack of reliable and easy-to-reach customer support.Lack of Knowledge Spurs ConcernThe general knowledge of m-commerce and its possibilitiesis low in Latin America, especially among strugglers, leadingto misconceptions and distrust and slowing m-commerceadoption.Another important barrier for strugglers is having to payservice fees. As cash is free to use, consumers are naturallyhesitant towards paying for a payment solution, especiallysince they are not aware of the benefits m-commercebrings.“At the beginning I felt unsafe and I didnot use m-banking, but then I asked thepeople that already used it if it was safe.They reassured me and I started to usethese services.”— Male, 24, BrazilLack of knowledgeHigh service feesPoor securityUnreliable networkAbsence of transparencyInaccessibilityUnreliable networkLack of transparencyPoor user interfaceAbsence of securityInaccessibilityFigure 7: Barriers for m-commerce Source: Ericsson ConsumerLab, M-Commerce in Latin America, 2013Barriers for M-commerceERICSSON CONSUMERLAB M-COMMERCE IN LATIN AMERICA 9STRUGGLERS ACHIEVERS
  10. 10. THE CULTURALLEGACY OF DISTRUSTDistrust of Institutions CommonAmong Latin American consumers, distrust of institutions iswidespread, even though few have any first-hand experienceto base this feeling upon. The skepticism towards institutionsrevolves around three common perceptions.> Institutions are historically regarded as part of the estab-lishment, primarily serving the interests of those in powerand the wealthy.> Repeated news of official misconduct and corrup-tion fuels the common belief that institutions are not tobe trusted.> The level of service and customer friendliness of institu-tions is considered low. This is also true when it comes tomobile operators.Beyond perceived poor or non-existent customer support,the main reason for consumers’ distrust of operators is thenotion of unreliable network quality and poor performance.Consumers are also sensitive to high or hidden fees.Banks Most Trusted Provider of M-commerceIn regard to banks, consumers’ relationship is usually quiteinstrumental and hence loyalty tends to be low. It is notunusual for banked consumers to have accounts with multi-ple banks. The lack of interoperability between banks is alsoconsidered a problem in some markets.However, consumers tend to view banks as the preferredprovider of m-commerce services. Security is importantamong Latin Americans, and since keeping money safe isbanks’ core business, consumers perceive them as moretrustworthy than other players in this regard.Another aspect of making consumers feel safer is theadoption of regulations that safeguard consumer rightsand security.“If there was an unexpected expense, Iwould ask someone in my family for money.Even if it was a big amount, I would stillask someone I know. Rather than goingto a bank.”— Female, 39, ChileFigure 6: Preferred M-commerce Provider10 ERICSSON CONSUMERLAB M-COMMERCE IN LATIN AMERICAA bankA mobile network provider/carrierA large retail storeA bank credit card providerA mobile handset brandSource: Ericsson ConsumerLab, Analytical Platform, 2012Base: User or interested in mobile wallet (Argentina, Brazil, Chile, Colombia, Mexico)Mexico 51%14%9%12%14%Colombia 63%9%5%6%17%Chile 56%15%11%6%11%Argentina 43%14%9%26%7%Brazil 50%14%7%21%8%
  11. 11. For m-commerce to gain ground in Latin America, consumer needs on all levels have to be addressed- by getting necessary regulation in place and adjusting basic prerequisites to the mode of communication.MethodologyThe data in this report comes from qualitative,in-depth interviews as well as expert interviewsand quantitative data.Unlocking futurepotentialOne important prerequisite for m-commerce is building trust:both institutional trust on a broad level and trust in mobileoperators in particular. Lack of network quality, speed andcoverage as well as perceived poor customer support havehad a negative effect on the confidence in mobile operators.Government regulations to protect the consumer is also im-perative to gain trust by making m-commerce more secure.The overall lack of consumer confidence suggests that stra-tegic alliances between different types of players might benecessary. Successfully launching m-commerce on a broadscale would most likely require cooperation rather than com-peting alternatives which could fuel consumer doubt. Whilebanks are the most trusted institution to handle money,mobile operators are trusted as a facilitating intermediary,since they are the link between the mobile device and thenetwork. Retailers can in turn provide convenient access tocustomers in store.M-commerce services need to be developed based on keydrivers for the two segments; control, safety and conveni-ence. For strugglers, basic mobile banking solutions wouldprovide safety and control, while mobile payments wouldbe convenient for achievers, who appreciate not having tohandle cash at all.When communicating around m-commerce services,education and validation from independent and trustedparties are key factors, since knowledge of m-commerceand its advantages is scarce in Latin America.Figure 9: Pyramid of Consumer NeedsERICSSON CONSUMERLAB M-COMMERCE IN LATIN AMERICA 11Source: Ericsson ConsumerLab, M-Commerce in Latin America, 2013Ericsson ConsumerLab,M-Commerce in Latin America, 201350 in-depth consumer interviews in São Paulo,Bogota, Buenos Aires, Santiago and MexicoCity, including consumer diaries25 of the interviews were conducted inrepondents’ homes and followed by shop-alongs30 expert interviews with leading professionals fromthe m-commerce ecosystem in Latin AmericaJanuary - April 2013Argentina, Brazil, Chile, Colombia, Mexico> 4,080 online interviews, age 16-60May 2012Ericsson ConsumerLab, Analytical Platform, 2012FeaturesServicesTrustContextConsumers require transparency, traceability and ease of use inorder to adopt fully.Consumers need services based on the key drivers for the segments:control, safety and convenience.Education and validation from independent and trusted partiesare key factors.Regulations to protect the consumer need to be in place.
  12. 12. The content of this document is subject to revision withoutnotice due to continued progress in methodology, design andmanufacturing. Ericsson shall have no liability for any error ordamage of any kind resulting from the use of this document.EricssonSE-126 25 Stockholm, SwedenTelephone +46 10 719 00 00Fax +46 8 18 40 85www.ericsson.comEAB-13:029870 Uen© Ericsson AB 2013Ericsson is a world-leading provider of communications technology and services.We are enabling the Networked Society with efficient real-time solutions that allowus all to study, work and live our lives more freely, in sustainable societies aroundthe world.Our offering comprises services, software and infrastructure within Informationand CommunicationsTechnology for telecom operators and other industries.Today 40 percent of the world’s mobile traffic goes through Ericsson networksand we support customers’ networks servicing more than 2.5 billion subscriptions.We are more than 110,000 people working with customers in more than 180countries. Founded in 1876, Ericsson is headquartered in Stockholm, Sweden.In 2012 the company’s net sales were SEK 227.8 billion (USD 33.8 billion). Ericssonis listed on NASDAQ OMX, Stockholm and NASDAQ, NewYork stock exchanges.

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