ericsson210.pdf

© 2010 Technology Business Research, Inc.
TBR
T ECH N O LO G Y B U SIN ESS RESEARCH , IN C.
Telefon AB LM Ericsson
SECOND CALENDAR QUARTER 2010
NETWORK BUSINESS QUARTERLYSM
TBR OUTLOOK – POSITIVE TBR SCORE (0-10 SCALE)
4.40
Second Fiscal Quarter 2010 Ended June 30, 2010
Publish Date: August 30, 2010
Author: Christopher Antlitz (chris.antlitz@tbri.com), Research Analyst
Content Editor: John Byrne, NBQ Director
11 Merrill Drive
Hampton, NH 03842
603.929.1166
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TBR
2 TBR NETWORK BUSINESS QUARTERLYSM
Ericsson – Calendar 2Q10 Report
www.tbri.com
Table of Contents
Company Data Models
Financial Strategy Graphs 25
Go-to-Market Resource Graphs 28
Income Statement 29
Balance Sheet 31
Operating Segment Revenue Model 33
Global Services Revenue Model 34
Geographic Model 35
Operating Expense Model 36
Headcount Model 37
Projection Model 38
Acquisitions Alliances 39
Recent Product Announcements 40
Customer Deals 41
Management 46
Company Analysis
Executive Summary 3
Strategy Overview 7
Corporate SWOT Analysis 12
Financial Model Strategy 14
Alliance Acquisition Strategies 17
Go-to-Market Product Strategies 18
Geographic Analysis 20
Resource Management Strategy 21
Future Outlook 22
Appendix 24

TBR
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1
1
1
Nortel’s wireless
assets continue to
prove invaluable to
Ericsson
• Ericsson reported sales declines in all regions except North America, which
increased 128% year-to-year and 37% sequentially in 2Q10. LTE equipment
volumes began to ramp up and demand for mobile broadband increased in what
is now Ericsson’s largest market.
• Even CDMA showed strength, indicating that Nortel’s LTE and CDMA assets are
successfully being monetized by Ericsson, and that Nortel’s customer
relationships are helping the company generate business in the challenging
economic climate.
Global Services growth
stalled in 2Q10 due to
network rollout
challenges
• While Managed Services gained momentum, the Global Services division
reported flat growth in 2Q10, as network rollout sales dropped 12% from a year
ago.
• The general slowdown in turnkey deployments was exacerbated by component
shortages and bottlenecks in the supply chain. Ericsson still managed to turn a
profit from network rollout, a feat that had eluded the company since the
recession began.
Ericsson’s tie-up with
Endesa signals a broad
market for managed
services
• Ericsson’s four-year managed services contract with Endesa, an electric utility in
Spain, demonstrates that Ericsson can leverage its services expertise to cater to
non-operator customers.
• Under the deal, Ericsson assumes responsibility for Endesa’s corporate network,
which services nearly 24 million customers across Spain. The deal highlights
Ericsson’s intention to broaden its managed services portfolio well beyond
communication service providers.
Ericsson continued to gain Managed Services momentum
in 2Q10, expanding its reach into the utility segment
Executive Summary

TBR
TBR NETWORK BUSINESS QUARTERLYSM
4
TBR Position:
Executive Summary
Although Ericsson revenue declined due to sluggish operator spending,
component shortages and India red tape, backlog is strong for 2H10
Ericsson could return to growth as early as
4Q10, as India equipment sales ramp up and
backlog commitments are filled.
• Ongoing component shortages and supply chain
issues created a backlog of SEK 3 billion to
4 billion in 2Q10. Importantly, these sales were
not lost – an indication that operators are willing
to stick with Ericsson and not turn to rivals for
faster delivery.
• The requirement to obtain security clearances in
India slowed equipment sales dramatically for all
vendors, causing Ericsson’s sales in the country
to plunge 63% year-to-year and 41%
sequentially.
Ericsson’s Corporate Strategies
• Leverage LTE to maintain dominant position in
wireless deployments.
• Expand Ericsson’s addressable market by
catering telecom product and service offerings
to enterprise customers in a variety of
industries beyond traditional service providers.
• Play integral role in the modernization of legacy
base stations, particularly in Europe.
• Operator spending on mobile broadband
equipment is strong, but is only partially offsetting
declines in 2G voice equipment.
• Professional Services continues to grow, up 5.4%
year-to-year (9% at constant currency) in 2Q10,
while Managed Services growth accelerated to
23%.
• Geographic performance was mixed, as the pace
of economic recovery varies significantly by
region and by country.
ERICSSON PROFITABILITY AND GROWTH
0
10,000
20,000
30,000
40,000
50,000
60,000
2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Est.
In
SEK
Millions
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
Total Revenue Gross Profit
Operating Profit Year-to-Year Revenue Growth
SOURCE: TBR AND ERICSSON

TBR
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Resource
Management
Financial
Performance
Go-to-Market
Strategy
Executive
Summary
Executive Summary
Strong demand for Managed Services prevented a
decline in the Global Services division’s revenue
Segment Key Changes Drivers
2Q10
Revenue
Growth
Y/Y
Keep on the Radar
Networks
• Network sales were negatively
impacted by component shortages
and supply chain bottlenecks. While
supply concerns started to ease in
July, Ericsson and its rivals will
continue to experience parts delays
through at least 2010 while
manufacturers ramp up production.
SEK 25.5
billion
($3.4
billion)
–11.5%
• Ericsson estimates there are 1.5
million GSM base stations that
will require replacement in
coming years; the majority of
replacements will take place in
Europe, where Ericsson is the
largest incumbent supplier.
Global
Services
• Strong demand for Managed Services
offset declines in network rollout, SI
and consulting.
• Excluding Managed Services revenue,
Professional Services would have
declined 3% year-to-year.
SEK 20.1
billion
($2.7
billion)
0.3%
• Ericsson’s managed services
deal with Spanish electric utility
Endesa shows that there are
vast, largely untapped
opportunities to sell services to
customers beyond traditional
network operators.
Multimedia
• A dearth of investment in revenue
management solutions in MEA and
India are the primary drag on sales in
the Multimedia division.
SEK 2.4
billion
($320
million)
–27.3%
• Investments in TV solutions
such as 3-D content delivery will
help Ericsson capitalize on
growing consumer preferences
for receiving and viewing video
content.

TBR
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Ericsson outperformed its peers in terms of equipment market share,
and continues to invest aggressively in RD to maintain its advantage
Executive Summary
Key
■ Represents an area where Ericsson is
currently challenged versus peers
outperforming its peers
neither significantly outperforming nor
underperforming its peers
FINANCIAL METRICS
TBR
Score
Company
Figure
Average in
Class
Standard
Deviation/2
Revenue Growth Year‐to‐Year 4.22 ‐8.0% 0.4% 10.8%
Revenue/Employee 4.11 309,094
$ 383,966
$ 84,460
$
Gross Margin 4.97 37.0% 37.1% 5.2%
SGA as % of Sales 5.89 14.9% 16.8% 2.2%
RD as % of Sales 3.72 16.2% 13.3% 2.2%
Operating Margin 5.06 6.3% 6.0% 4.4%
Days Cash Outstanding 4.91 126.81 131.53 50.06
Total Asset Turns 3.58 0.70 0.91 0.15
Current Ratio 5.46 2.00 1.87 0.27
Debt/Assets 4.87 0.49 0.48 0.07
Return on Assets 3.88 1.8% 4.8% 2.7%
Return on Equity 4.02 3.4% 11.0% 7.7%
TOTAL AVERAGE TBR SCORE
GO‐TO‐MARKET SERVICES METRICS
TBR
Score
Company
Figure
Average in
Class
Standard
Deviation/2
Network/Comm. Equipment Market Share 6.08 21.0% 16.1% 4.6%
Mobile Phones 3.44 3.3% 14.8% 7.4%
Days Sales Outstanding 2.33 130.17 78.98 19.19
RESOURCE MANAGEMENT METRICS
TBR
Score
Company
Figure
Average in
Class
Standard
Deviation/2
Inventory Turns/Year 2.83 4.52 9.40 2.24
Fixed Asset Turns/Year 6.58 20.06 14.33 3.63
4.56
3.95
4.70
2Q09 3Q09 4Q09 1Q10 2Q10
Financial Model Strategy: 5.06 5.01 5.06 4.77 4.56
Go‐to‐Market Services Strategies: 3.89 3.91 4.24 3.80 3.95
Resource Management Strategy: 4.88 4.78 6.41 4.89 4.70
TOTAL AVERAGE TBR SCORE: 4.61 4.57 5.24 4.49 4.40
CALENDAR QUARTER RESULTS
TBR SCORING SUMMARY:

TBR
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As Chinese operators wind down 3G deployments, Ericsson is
successfully capturing follow-on managed services engagements
Key Company Objectives TBR Assessment
Overall
• Capture market share in key emerging
markets, including China and India
(4Q09)
• Leverage investment in Silicon Valley
assets to establish credentials within
Multimedia unit
• Utilize Sprint deal to establish leadership
stake in U.S. network outsourcing market
; In July, Ericsson added a significant managed
services deal with China Mobile, for field maintenance
covering 22,000 cell sites in Hebei province.
: Multimedia unit revenue plummeted in 2Q10, due
largely to poor revenue management sales. TV-related
revenue continues to grow, albeit from a small base.
Â Ericsson’s managed services deal with Canadian
operator Mobilicity is just getting underway, though
anecdotal reports indicate possible funding issues. In
the U.S., NSN scored the most recent success, landing
a significant managed services deal with LightSquared.
Financial
• Maintain revenue growth despite
competitive threats from Chinese vendors
• Embark on continuous cost-control
program to ensure margins can be
maintained
• Return Sony Ericsson to profitability
(4Q09)
: Ericsson continues to struggle to regain revenue,
due to a combination of slow overall volume and
relentless competition from Huawei, ZTE and others.
; Despite revenue decline, Ericsson is reaping the
benefits of the aggressive cost-cutting initiatives of the
last two years.
; Despite a 20% year-to-year decrease in handset
shipments, Sony Ericsson posted a thin operating profit
in 2Q10.
Strategy Overview
Key: ; Working: Short-term impact expected on bottom / top line : Not working: No major impact or differentiation expected Â Too soon to tell

TBR
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Ericsson maintained its significant leadership position in managed
services and is now neck-and-neck with Alcatel-Lucent in North America
Key Company Objectives TBR Assessment
Go-to-
Market
• Maintain role as largest provider of
telecom infrastructure services (3Q09)
• Become a dominant North American
supplier (3Q09)
• Build a strong position in full service
broadband leveraging its IPTV, IP
networking and optical assets
• Utilize Nortel assets to pursue CDMA
“long-tail” and CDMA-LTE migration
opportunities
; Ericsson’s roster of customers under managed
services deals has grown to over 750 million in 100+
countries, making Ericsson the largest managed services
vendor by far among network equipment providers.
; TBR estimates that Ericsson’s 2009 North American
revenue, pro forma for Nortel, would have essentially
matched Alcatel-Lucent with revenue of $3.8 billion.
Â Ericsson is reporting some success in IPTV, but the
overall market is not meeting growth expectations.
; Ericsson is successfully leveraging its CDMA assets
to penetrate Tier 1 or Tier 2 U.S. operators.
RD
Delivery
Strategy
• Leverage ST-Ericsson to grow share in
embedded module marketplace
• Extend reach into enterprise segment
through channel program
• Utilize Sony Ericsson to access
opportunities in the handset market
Â Embedded modules represent a major growth
opportunity as the M2M market grows, but ST-Ericsson
faces significant competition from low-cost vendors.
Â Ericsson launched a channel program for microwave
last year, but has not yet reported strong success.
: Sony Ericsson has significantly reduced operating
losses, but there are few synergies between Sony
Ericsson and Ericsson’s key equipment, services and
multimedia initiatives.
Strategy Overview
Key: ; Working: Short-term impact expected on bottom / top line : Not working: No major impact or differentiation expected Â Too soon to tell

TBR
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Ericsson joined many equipment vendors in reporting
significant year-to-year revenue declines in India
TBR Assessment of Ericsson Strategy: Neutral
Security issues
with the Indian
government
hampered
infrastructure
deals in 2Q10,
while the
completion of 3G
auctions in India
have not yet
translated to
significant
deployment
contracts
• In India, Ericsson experienced its worst quarter of the last several years in 2Q10, as
sales fell to SEK 1.4 billion, a year-to-year decline of 62.9%. Services revenue stayed
flat due to the long-term nature of the contracts, but new infrastructure deals were
delayed and many existing contracts encountered regulatory hurdles.
• The Indian 3G spectrum auction, which concluded in May, did not lead to new network
infrastructure investments as the industry had anticipated. Indian operators are
expected to hand out equipment supply contracts in the third quarter, and Ericsson is
likely to compete aggressively against the likes of Alcatel-Lucent, Nokia Siemens,
Huawei and ZTE.
• Government regulations and security clearance issues detrimentally impacted 2Q10
results for Ericsson and other vendors. India’s stricter regulations appear designed to
keep Chinese vendors ZTE and Huawei from providing equipment to Indian operators;
however, the strict guidelines also required other foreign vendors, including Ericsson,
to submit to security inspections and make their network design and source code
available to the government. The regulations set a potentially troublesome precedent,
but may help Ericsson in the short term if they render the Chinese vendors unable to
win significant 3G tenders. Huawei and ZTE were excluded from a May RFP by BSNL,
in which Ericsson bid alongside traditional competitors Alcatel-Lucent and NSN.
• Ericsson made progress on the security front toward the end of 2Q10, with clearance
granted to do business with one of the 15 Indian operators and additional approvals
secured in July. This will likely result in improved revenue prospects from India in
3Q10. However, the Indian government has not yet decided on a concrete clearance
process and there is no timeframe for an agreement which could dampen prospects for
all vendors until a resolution is reached.
Strategy Overview

TBR
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Ericsson secures its largest managed services deal in China
TBR Assessment of Ericsson Strategy: Positive
Ericsson is now
the sole managed
services provider
for China Mobile
Hebei, a
provincial
company of
China’s largest
operator, China
Mobile
• Ericsson’s revenue from Chinese operations plunged 36% year-to-year due to the
completion of 3G network rollouts and upgrades, but a key managed services contract
was won from China Mobile Hebei. The three-year field maintenance agreement with
the China Mobile subsidiary will have Ericsson maintaining 22,000 GSM and
TD-SCDMA base stations in the Hebei province. This represents Ericsson’s largest
managed services contract in China, and provides it a strong reference account for
other Chinese operators, as well as for China Mobile operations in other provinces.
The deal is likely to increase in value as more base stations are added in Hebei. China
Mobile Hebei is the largest mobile operator in the province, with 35 million subscribers.
• Chinese operators have yet to embrace outsourcing network management due to
difficulties in cutting headcount, but with Ericsson’s industry-leading managed services
capabilities, this deal should allow Ericsson to showcase the cost savings and
reliability of the practice. TBR believes Ericsson will win business from additional China
Mobile provincial companies, as well as other reluctant Chinese operators.
• Ericsson and competitors Alcatel-Lucent and NSN have secured billion-dollar
equipment deals with China’s largest operators, but only Ericsson has thus far been
able to make inroads in the managed services sector. Alcatel-Lucent has struggled in
managed services of late, as it focuses on application enablement and saw managed
services revenue decrease year-to-year in 2Q10. For its part, NSN has recently found
success landing managed services offerings in Russia, Australia and South Africa, but
has yet to break into the Chinese managed services market.
• Ericsson is still generating more managed services revenue (up 23% year-to-year)
than its competitors, but TBR believes NSN is likely eyeing the Chinese market very
closely and is prepared to price-to-win in order to gain a managed services foothold in
the world’s most populous country.
Strategy Overview

TBR
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Ericsson will leverage its industry-leading position
in services to drive future growth
Corporate SWOT Analysis
Opportunities
• Tailor managed services offerings to
verticals outside of telco
• Leverage Nortel assets to expand market
position in CDMA and CDMA-LTE migrations
(1Q10)
• Utilize weak economy to sell opex-improving
professional services engagements
• Grow IPTV revenue stream with “Connected
Home” concept (3Q09)
• Embrace thought leadership in sustainability
with “Low Carbon Cities” message (3Q09)
Weaknesses
• Limited traction with Multimedia division
(1Q10)
• Minimal presence in enterprise market may
hamper Ericsson’s long-term plans (4Q09)
• Weak demand for legacy wireless and fixed
technologies dampening revenue growth
• Network outsourcing business requires long
path to deal profitability
Internal
External
Strengths
• Strong systems integration capabilities,
including 10,000 SI-focused employees
(4Q09)
• Ability to make a compelling network
upgrade business case (1Q09)
• Strong track record of acquisitions to fill
product and services gaps
• Ericsson Global Services is the market
leader, particularly in managed deals
Threats
• Component shortages are dampening
equipment sales
• Slowing 3G deployments will challenge
growth in the Chinese market
• Ericsson Global Services’ competitors,
particularly Nokia Siemens, aggressively
pursuing network outsourcing deals
• NSN’s focus on regaining market share likely
to threaten Ericsson growth and profitability

TBR
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The Endesa contract shows that Ericsson’s addressable market
for managed services goes far beyond traditional network operators
Opportunity: Tailor managed services offerings to verticals outside of telco
Ericsson’s
growing
managed
services
business
branches out
with Endesa
contract
• In July, Ericsson won a four-year managed services contract from Endesa, the largest
utility company in Spain, to provide services for its entire corporate telecommunications
network. This deal represents a significant break from the typical Ericsson managed
services contract, which has historically been between Ericsson and a
telecommunications company.
• The main players in the network infrastructure supply market have each developed a
secondary niche to complement their equipment vending activities, and Ericsson has
arguably had the most success with its managed services. While the equipment market
has been stagnant, Ericsson has been able to partially make up for the lack of activity
with a growing number of services deals from telecom operators.
• The Endesa contract extends Ericsson’s managed services business model to non-
telecommunications companies, greatly expanding its addressable market. Although
Ericsson first signed on to provide managed services for a non-telecom in 2006 with
automatic meter-reading firm Acea, the Endesa deal is far larger in scope, with
Ericsson taking over daily operations of Endesa’s telecom network in Spain on a
companywide scale. TBR believes this deal gives Ericsson a prime opportunity to
showcase the strategic advantages and cost-saving abilities of outsourcing corporate
communications to network vendors.
• Ericsson is taking a similar approach in the TV broadcasting industry. Last November,
Ericsson won a 10-year managed services contract from Swedish network TV4 Group
to transmit TV channels to service providers.

TBR
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Backlogs are building as network vendors
struggle to source critical components
Threat: Component shortages are hurting equipment sales
With a double-
dip recession
looming, TBR
believes
component
manufacturers
may be slow in
ramping up
production to
satisfy
demand
• The abrupt shift toward economic recovery (particularly in the U.S. and Asia), mixed with
strong demand for technology products, has caught many manufacturers off guard,
resulting in spot shortages of commodity electronic components.
• Manufacturers of these components, which go into a variety of products ranging from
smartphones to base stations, are struggling to keep up with demand, hurt doubly as
inventory levels have been abnormally low. Still, many manufacturers are reluctant to
ramp up production to pre-recession levels as the threat of a double dip could cause
demand to plunge again.
• Decreased production stems from reluctance on the part of Asian manufacturers such as
Hynix, Toshiba and Murata to rehire after laying off large portions of their workforces
during the global recession. Additionally, some companies who made these components
closed down completely within the last two years, further concentrating the supplier base.
• While Ericsson and the other network vendors struggle to maintain adequate inventory
levels, consumer electronics manufacturers have had little trouble securing parts for their
products. Component makers are giving priority to orders by companies making high-
growth products, such as smartphones, over the languishing network gear suppliers.
• The recent increase in demand for these components may be short-lived, as there is talk
of a double dip in the near future. As such, manufacturers may remain skittish, which
means the shortage could last into early 2011, a projection that most vendors agree on.
• As a result, Ericsson and some rivals have had to delay delivery of network equipment as
lead times are pushed out. This has created sizable backlogs; in 2Q10 alone, Ericsson
estimates SEK 3-4 billion of contracted work has been delayed due to the shortages.
However, once these supply chain bottlenecks are resolved, TBR believes Ericsson and
rivals will see a bump in equipment sales as vendors scramble to fill outstanding orders.

TBR
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Financial Model Strategy
Gross and operating margin both improved from a year ago,
indicating that management’s restructuring efforts are bearing fruit
Revenue
• Total revenue fell 8% (–15% at constant
currency) year-to-year, negatively impacted by
component shortages, which trimmed SEK 3–4
billion off the top line.
Expenses
• RD comprised 16.2% of total revenue,
unchanged from 2Q09, but declined 8.3% year-
to-year on efficiencies from the recently
completed restructuring program.
• SGA declined 3.8% year-to-year but increased
60 basis points to 14.9% of total revenue, due to
increased spending on LTE initiatives.
Margins
• Reported gross margin increased 140 basis
points year-to-year, to 37%, on favorable product
mix.
• Operating margin increased 400 basis points
year-to-year to 6.3% and operating income
increased 150% to SEK 3 billion ($400 million),
largely due to improving results in Song-Ericsson
and ST-Ericsson.
• Excluding Ericsson’s share in the JVs, operating
margin increased 50 basis points to 6.9%, but
operating income fell 1%.
ERICSSON ADJUSTED OPERATING MARGIN
BY SEGMENT
-20%
-15%
-10%
-5%
0%
5%
10%
15%
2Q09 3Q09 4Q09 1Q10 2Q10
Networks Global Services Multimedia
TBR
ERICSSON PRODUCT SERVICE REVENUE
20,080
2,420
28,795
24,504 24,704
31,844
25,472
18,578
23,137
18,098
20,019
3,328
3,351
3,352
2,310
10,000
16,000
22,000
28,000
34,000
40,000
46,000
52,000
58,000
2Q09 3Q09 4Q09 1Q10 2Q10
In
SEK
Millions
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
Networks Global Services
Multimedia Year-to-Year Revenue Growth
TBR

TBR
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Services comprised 42% of total revenue in 2Q10, led by managed
services, which registered strong growth of 23% year-to-year
Revenue Performance Segment Revenue Drivers
2Q10 Total Revenue: SEK 48 billion ($6.4 billion)
Networks
SEK 25.5
billion
($3.4
billion)
• Networks revenue declined 11.5% year-to-
year, as component shortages prevented
Ericsson from meeting resurgent demand for
infrastructure in some regions.
• TBR believes Networks revenue will tick up
in 2H10 as Ericsson ramps up 3G
deployments in India and fills its backlog.
Global
Services
SEK 20.1
billion
($2.7
billion)
• Managed Services grew 23% year-to-year,
and Ericsson is expanding its reach to non-
telecoms, greatly increasing the addressable
market for its services.
• Strong growth in Managed Services offset
declines in network rollout, which took on
fewer turnkey projects.
Multimedia
SEK 2.4
billion
($320
million)
• Multimedia sales were hampered by lower
demand in the key emerging markets of
Africa, India and the Middle East.
• Weak multimedia sales in Africa, India and
the Middle East resulted in a year-to-year
revenue decline of 27.3%.
ERICSSON 2Q10 SEGMENT REVENUE GROWTH
52,142
3,323
761 700
908
47,972
46,000
46,500
47,000
47,500
48,000
48,500
49,000
49,500
50,000
50,500
51,000
51,500
52,000
52,500
2Q09
Revenue
Networks Professional
Services
Network
Rollout
Multimedia 2Q10
Revenue
In
SEK
Millions
TBR
ERICSSON REVENUE COMPOSITION
0%
15%
30%
45%
60%
2Q09 3Q09 4Q09 1Q10 2Q10
Networks Global Services Multimedia
TBR

TBR
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Excluding the integration impact from Nortel’s assets, Ericsson’s
cost-management initiatives were widely successful
Expense Performance Expense Segments Strategies
2Q10 Total OPEX: SEK 45.6 billion ($6 billion)
Cost of
Revenue
SEK 30.2
billion
($4 billion)
• Cost of revenue declined 12.4% year-
to-year, reflecting the effect of cost-
reduction initiatives and improved
product mix, which is increasingly
being skewed toward higher-margin
services.
SGA
SEK 7.2
billion
($948
million)
• The cost-reduction program did not
fully effect SGA, which was
impacted by the integration of Nortel’s
CDMA assets and an increase in LTE
trials.
• SGA as a percentage of revenue
should trend lower as the Nortel
integration winds down in 3Q10.
RD
SEK 7.8
billion
($1 billion)
• RD expenses will increase as a
percentage of revenue as Ericsson
feels the impact of the acquisition of
Nortel’s share of the LG-Nortel joint
venture.
ERICSSON OPEX AS A PERCENTAGE OF REVENUE
0%
10%
20%
30%
40%
50%
60%
70%
2Q09 3Q09 4Q09 1Q10 2Q10
Cost of Sales SGA Research Development
TBR
ERICSSON OPERATING EXPENSES
5,279 7,158
7,751
30,235
39,335
28,527
30,455
34,531
7,443
7,008
7,323
7,526
9,306
8,218
8,451
0
10,000
20,000
30,000
40,000
50,000
60,000
2Q09 3Q09 4Q09 1Q10 2Q10
In
SEK
Millions
Cost of Sales SGA Research Development
TBR

TBR
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LG-Ericsson USA brings another voice and data player to North America
Alliance Acquisition Strategies
TBR Assessment: The LG-Ericsson joint venture brings Ericsson back into the enterprise segment it
exited two years ago
LG-Ericsson
USA will
target the
North
American
SMB market
with its
hybrid TDM
products
• LG-Ericsson, the joint venture formed when Ericsson bought Nortel’s share of LG-Nortel, has
officially launched a joint venture of its own, teaming with Accton Technology, a voice and data
networking solutions provider from Taiwan, to form LG-Ericsson USA. LG-Ericsson USA
started as the Business Solution Group of SMC Networks, but that division was spun off by
Accton in November 2009 to form Edgecore Networks. In January, LG-Nortel purchased a
60% stake in Edgecore. The subsequent transition from LG-Nortel to LG-Ericsson led to the
delayed launch of LG-Ericsson USA in August.
• LG-Ericsson USA offers end-to-end voice and data solutions including IP and hybrid phone
systems, managed and unmanaged switches, and Wi-Fi access points. Aimed at North
American SMB with 10 to 1,200 users, LG-Ericsson sees the combined voice and data
solutions growing into advanced unified communications systems; however, the company will
face the challenge being seen in the UC market in which SMBs are reluctant to make the
significant investment required to build a robust UC solution.
• On the upside, because the SMB market remains under-penetrated, LG-Ericsson USA has the
opportunity to win first-time adopters without having to pry customers away from the
technology of established UC providers Cisco and Avaya. LG-Ericsson USA will, however, face
competition from companies such as ShoreTel and Mitel, smaller companies who, like LG-
Ericsson USA, provide hybrid time division multiplexing solutions.
• LG-Ericsson USA has the name recognition and uncommon ability to provide both full data and
telephony products in order to win SMB customers. The company maintains distribution
relationships with Ingram Micro, Tech Data and others that were carried over from Edgecore,
as well as over 3,000 North American data networking value-added resellers.
• The buyout of Nortel’s stake in LG-Nortel was completed in June. Ericsson reports that 2009
revenue for LG-Nortel was between $600 million and $650 million.

TBR
www.tbri.com
Ericsson enhanced its TV offerings, as it continues to gear
up for future opportunities in TV apps and 3-D
Networks
• 3G deployments and/or expansions such as Ericsson’s 2Q10 contracts with Indonesian operator Indosat
and Bahrain’s Batelco are increasingly being positioned for an eventual migration to LTE. With LTE trials
multiplying globally, vendors and operators are ensuring that the migration to LTE will be relatively simple
and primarily software-based. Ericsson’s RBS 6000 has been used extensively in such recent projects due
to its flexibility to support multiple radio-frequency technologies, including GSM, WCDMA, HSPA and LTE,
as well as for its energy efficiency.
• While telecom companies wait for the LTE ecosystem to develop, many are enhancing their 3G networks
with additional backhaul and/or software upgrades to HSPA+ to take advantage of faster pre-4G theoretical
speeds. Ericsson and its rivals are competing aggressively at the deployment level for these contracts,
knowing that successful HSPA+ upgrades could mean future contracts for LTE equipment, as well as long-
term managed services deals.
Multimedia
• Ericsson enhanced its TV offerings in 2Q10 with the addition of OpenStream Catalog Gateway and a 3-D
content delivery solution. Introduced in May, the Gateway matches consumer interests with content
available on demand from an operator’s VoD library, with the intent of boosting usage and revenue
generation from advanced TV services.
• In April, Ericsson became an early entrant to the nascent 3-D market, which the vendor believes will exceed
$60 billion in five years. The solution establishes a platform for operators to provide 3-D content through
their existing infrastructure to end-users’ homes. TBR believes that while the ecosystem for 3-D is currently
small, Ericsson’s early entrance into the technology will give the company an advantage in attracting
business from early adopter service providers.
Go-to-Market Product Strategies

TBR
www.tbri.com
Go-to-Market Product Strategies
Sony-Ericsson and ST-Ericsson continue to show moderate improvement,
but losses continue to drag on Ericsson’s bottom line
Global Services
• Services comprised 42% of Ericsson’s total revenue in 2Q10, up 350 basis points from a year ago.
Managed services comprised 28.1% of the Services total, up 520 basis points year-to-year.
• Ericsson secured three major managed services contracts in 2Q10, with Telefónica in Brazil, BH Telecom
in Bosnia Herzegovina and Mobilicity in Canada.
• Ericsson’s services division emerged largely unscathed from the security clearance process in India, which
helped the vendor generate cash flow in the country while the equipment side of the business was
stagnant.
Sony Ericsson ST-Ericsson
• ASP jumped 31% year-to-year and 19% sequentially to
€160 (or $204), reflecting Sony Ericsson’s foray into
smartphones. While units shipped declined from 13.8
million in 2Q09 to 11 million in 2Q10, market share was
stable, at roughly 4% globally.
• The shift toward high-end smartphones propelled revenue
4% year-to-year and 25% sequentially, and brought
positive operating income before accounting for
restructuring charges.
• Overall, with the JV’s restructuring program set to finish
by the end of 2010, the streamlined company is better
prepared to handle the challenging marketplace.
However, Sony Ericsson must focus in the longer term on
delivering differentiated products to uproot consumers
from popular devices such as the iPhone and BlackBerry.
• Sales at ST-Ericsson fell 18.3%, but
adjusted operating loss narrowed from €165
million to €118 million, as restructuring
efforts trimmed opex.
• Savings from both restructuring programs
will overlap and amplify starting in 3Q10,
which will accelerate improvement in the
PL statement.

TBR
www.tbri.com
Excluding North America, Ericsson experienced sales
declines in every region on a year-to-year basis
Geo Key Deals Drivers
2Q10
Revenue
YTY
Growth
Keep on the Radar
North
America
• Ericsson secured two small operator deals in
the U.S. – one with Wisconsin-based Cross
Wireless and the other with e-learning
services provider Edgenics.
• In Canada, Ericsson won a managed
services deal with Mobilicity to manage the
operator’s 3G network for five years.
SEK 13.5
billion
($1.8
billion)
128.5%
• Ericsson’s new TV offerings
could appeal to operators in
the region pushing advanced
services to boost ARPU.
EMEA
• While demand for services in Europe
remains strong, equipment deal flow
remained light, especially in Eastern Europe
as a result of the sovereign debt crisis.
SEK 20.2
billion
($2.7
billion)
–16.9%
• Ericsson estimates that most
of the 1.5 million GSM base
stations in need of
modernization are in Europe,
which will stimulate
equipment sales across the
continent.
APAC
• Chinese sales fell as 3G rollouts neared
completion, while India revenue plunged due
to security clearance obstacles.
SEK 10.0
billion
($1.3
billion)
–41.6%
• With security clearance in
hand, Ericsson is ready to
begin bidding on equipment
contracts in India.
CALA
• Operator capex spend in Latin America
remains dampened, as poor access to
funding and adverse currency swings hinder
investment.
SEK 4.4
billion
($576
million)
–12.1%
• Ericsson is seeing a strong
threat from NSN, which will
open its first Latin American
NOC in October.
Geographic Analysis

TBR
www.tbri.com
Ericsson’s headcount is growing steadily as the vendor
adds employees from managed services contracts
SOURCE: DELL AND TBR.
Ericsson’s
Worldwide Operations
Investments/RD Focus
• Ericsson invested in its TV portfolio, as
exemplified by the recent introduction of the
OpenStream Catalog Gateway and 3-D
content delivery solution. While the market
for these offerings is currently small,
Ericsson hopes its early entry into TV apps
and 3-D will help win business, especially in
developed economies.
Personnel Changes
• In June, Ase Lindskog, former head of Corporate
Public and Media Relations, was appointed head of
Investor and Analyst Relations. He was replaced by
Ola Rembe.
• Ericsson’s headcount is rising steadily as the vendor
assumes employees from operators signing up for
managed services.
• Total headcount increased 1% sequentially to 87,413.
In June, Ericsson and Vodafone
opened a joint innovation
center in Madrid, Spain to focus
on building 2G and 3G RAN.
The plant Ericsson purchased in
Estonia from Elcoteq in June 2009
started mass production of 4G
equipment for Europe, the United
States and Africa in 2Q10.
Resource Management Strategy
ERICSSON EMPLOYEE HEADCOUNT BY GEOGRAPHIC REGION
11,222 13,450 13,857
48,972 49,757 49,349
15,303
15,803 16,244
17,196 18,057
7,858
5,721 6,055
6,134 6,150
11,199
5,284
49,803
48,803
0
15,000
30,000
45,000
60,000
75,000
90,000
2Q09 3Q09 4Q09 1Q10 2Q10
Number
of
Employees
North America EMEA APAC CALA
TBR

TBR
www.tbri.com
Ericsson maintains a strong position in wireless equipment and should
see its share from LTE grow steadily over the next few quarters
TBR Outlook: Neutral
Industry
• TBR continues to anticipate restrained capital investment by wireless carriers, even as they
maneuver to bring LTE to market in a timely manner. Vendors will continue to be squeezed as
they seek to maintain market share, but in Ericsson’s case, measurable revenue from LTE
should be evident in 2H10 results.
• Ericsson is successfully seizing opportunities in managed services, ensuring that its
dominance in equipment will be maintained, as the industry increasingly looks to vendors to
provide opex and capex savings through outsourcing its out-tasking engagements.
Competitors
• NSN’s Motorola buy will dramatically improve its competitive position, but Ericsson remains a
formidable rival in terms of large infrastructure deals, especially in developed regions. In
North America, the deal will improve NSN’s position significantly, but Ericsson and Alcatel-
Lucent continue to be the clear frontrunners in the market.
• As evidenced by Ericsson’s inclusion by ATT as one of two providers for GPON, Ericsson
continues to make headway outside of wireless, though competitors such as Alcatel-Lucent
compete aggressively with Ericsson in markets for IP, transport and application enablement
solutions.
Company
Strategy
• In the U.S. market, Ericsson is in the midst of LTE buildout for MetroPCS and is in the early
stages of rolling out Verizon Wireless’ LTE network. The company is also successfully
leveraging Nortel customer relationships and assets to sign new small operator deals, though
NSN is emerging as a formidable competitor in the small operator space.
• In its most important non-North American markets, Ericsson is looking to establish long-term
managed services deals with the major operators, which, given the fragmented nature of
Chinese operators, will proceed on a province-by-province basis. In India, there will be
significant activity in 2H10, as all the major equipment vendors vie for lucrative 3G deals
following the completion of Indian spectrum auctions in 2H10.
Future Outlook

TBR
www.tbri.com
Ericsson is likely to see improved revenue performance in 3Q10
and is well-positioned to return to revenue growth by year-end
Future Outlook
TBR Outlook: Neutral
Financial
Go-to-Market
• Ericsson will continue to rely on managed services engagements to offset declining revenue
from equipment sales and a struggling multimedia unit.
• In order to generate revenue in the still-struggling European markets, Ericsson will push the
“modernization” message, encouraging operators to upgrade aging equipment as table stakes
to handle the rapid increase in data throughput now being seen.
Resource
Management
• Ericsson completed its 18-month cost reduction program by the end of 2Q10. The company
expects to generate annualized savings of SKr 15 billion to SKr 16 billion beginning in 2H10.
The company incurred an equal amount restructuring charges related to the cost-reduction
program, of which approximately 40% were incurred in cost of sales and 60% were related to
RD, sales or administrative costs.
• TBR believes Ericsson is
likely to experience another
quarter of year-to-year
revenue decline in 3Q10,
though the pace of decline is
likely to be slow compared
to the past three quarters.
While component shortages
are likely to continue to
dampen sales, Ericsson
should see marked
sequential improvement in
2Q10 NBQ VENDOR POSITION AND PROJECTION: ERICSSON
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
10.00
-10% -8% -6% -4% -2% 0% 2%
Quarterly Revenue Growth Year-to-year
NBQ
Corporate
Score
Trailing 12-Month
Average Growth = 0.4%
TBR
2Q10
3Q10 Est.
1Q10
India and an increase in LTE deployment activity, which should help close the revenue
gap. TBR believes Ericsson will be well-positioned to return to year-to-year revenue
growth in 4Q10.

TBR
www.tbri.com
TBR Coverage and Overview
This report is based on information made available to the public by the vendor and other public sources. No representation is made that this information is accurate or complete. Technology Business Research will not
be held liable or responsible for any decisions that are made based on this information. This report is not a recommendation to purchase securities. This report is copyright protected and supplied for the sole use of
the recipient. Contact Technology Business Research, Inc. for permission to reproduce: 11 Merrill Drive, Hampton, NH 03842, P: 603.929.1166, F: 603.926.9801, Web: www.tbri.com
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TBR
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Appendix - Financial Graphs
*VENDOR PERFORMANCE COMPARED TO PEERS IN TBR’S NETWORK BUSINESS QUARTERLY BENCHMARK.
Financial Strategy Graphs
GROSS MARGIN
33.8%
32.6%
37.0%
36.8%
34.4%
20%
25%
30%
35%
40%
2Q09 3Q09 4Q09 1Q10 2Q10
ERICSSON NBQ AVERAGE
TBR
YEAR-TO-YEAR REVENUE GROWTH
-5.6%
-9.0% -8.0%
-13.0%
7.4%
-20%
-15%
-10%
-5%
0%
5%
10%
2Q09 3Q09 4Q09 1Q10 2Q10
TBR ANNUAL REVENUE PER EMPLOYEE
$355.4 $369.5
$309.1
$346.2
$374.9
$150
$200
$250
$300
$350
$400
$450
2Q09 3Q09 4Q09 1Q10 2Q10
In
$
Thousands
TBR
OPERATING MARGIN
2.3%
3.1%
6.3%
4.4%
2.5%
0%
1%
2%
3%
4%
5%
6%
7%
2Q09 3Q09 4Q09 1Q10 2Q10
TBR

TBR
www.tbri.com
Appendix - Financial Graphs
SGA AS A PERCENTAGE OF REVENUE
14.3%
12.6%
15.5% 14.9%
11.4%
0.0%
5.0%
10.0%
15.0%
20.0%
2Q09 3Q09 4Q09 1Q10 2Q10
TBR RD AS A PERCENTAGE OF REVENUE
16.2% 16.0% 16.2%
16.7%
17.7%
0.0%
5.0%
10.0%
15.0%
20.0%
2Q09 3Q09 4Q09 1Q10 2Q10
TBR
RETURN ON EQUITY
7.0%
2.9% 3.4%
2.5%
5.4%
0%
3%
6%
9%
12%
2Q09 3Q09 4Q09 1Q10 2Q10
TBR RETURN ON ASSETS
2.7%
1.3%
1.8%
1.5%
3.6%
-5%
-3%
-1%
1%
3%
5%
2Q09 3Q09 4Q09 1Q10 2Q10
TBR

TBR
www.tbri.com
Appendix – Financial Graphs
DAYS CASH OUTSTANDING
118.37
155.32
154.65
130.35 126.81
0
25
50
75
100
125
150
175
2Q09 3Q09 4Q09 1Q10 2Q10
Number
of
Days
TBR
DEBT/ASSET RATIO
0.48 0.47
0.48
0.49 0.49
0.30
0.35
0.40
0.45
0.50
0.55
2Q09 3Q09 4Q09 1Q10 2Q10
ERICSSON NBQ Average
TBR CURRENT RATIO
2.13 2.17
2.30
2.16
2.00
0.00
0.50
1.00
1.50
2.00
2.50
2Q09 3Q09 4Q09 1Q10 2Q10
ERICSSON NBQ Average
TBR

TBR
www.tbri.com
Appendix – Go-to-Market Resource Management Graphs
Go-to-Market and Resource Management Graphs
FIXED ASSET TURNS
20.06
20.58
18.92 19.07
24.47
0
5
10
15
20
25
30
2Q09 3Q09 4Q09 1Q10 2Q10
Number
of
Turns
TBR
DAYS SALES OUTSTANDING
130.17
119.74 121.00
125.08
102.46
40
60
80
100
120
140
2Q09 3Q09 4Q09 1Q10 2Q10
Number
of
Days
TBR TOTAL ASSET TURNS
0.70
0.74
0.68 0.67
0.87
0.00
0.20
0.40
0.60
0.80
1.00
2Q09 3Q09 4Q09 1Q10 2Q10
Number
of
Turns
TBR
INVENTORY TURNS
6.36
4.87
4.37
4.62 4.52
0.00
2.00
4.00
6.00
8.00
10.00
2Q09 3Q09 4Q09 1Q10 2Q10
Number
of
Turns
TBR

TBR
www.tbri.com
Appendix – Income Statement
ERICSSON
Consolidated Income Statement
(In Thousands Swedish Kronor (SEK) Except per Share Data)
FISCAL QUARTER 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Est.
CALENDAR QUARTER 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 Est.
Revenue 52,142,000 46,433,000 58,333,000 45,112,000 47,972,000 45,500,000
Cost of Sales 34,531,000 30,455,000 39,335,000 28,527,000 30,235,000 29,500,000
Gross Profit 17,611,000 15,978,000 18,998,000 16,585,000 17,737,000 16,000,000
Research and Development 8,451,000 8,218,000 9,306,000 7,526,000 7,751,000 8,000,000
Selling and General Admininistrative 7,443,000 5,279,000 7,323,000 7,008,000 7,158,000 5,500,000
Other Operating Revenue and Costs 1,640,000 222,000 878,000 302,000 500,000 250,000
Share in Earnings of Joint Ventures (2,144,000) (1,559,000) (1,461,000) (372,000) (308,000) (250,000)
Operating Income 1,213,000 1,144,000 1,786,000 1,981,000 3,020,000 2,500,000
Financial Income 4,000 296,000 314,000 278,000 470,000 300,000
Financial Expenses (79,000) (294,000) (719,000) (438,000) (596,000) (300,000)
Income before Taxes 1,138,000 1,146,000 1,381,000 1,821,000 2,894,000 2,500,000
Provision for (Benefit from) Income Taxes 341,000 374,000 656,000 547,000 867,000 500,000
Net Income 797,000 772,000 725,000 1,274,000 2,027,000 2,000,000
PERCENTAGE OF REVENUE
Revenue 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Cost of Sales 66.2% 65.6% 67.4% 63.2% 63.0% 64.8%
Gross Margin 33.8% 34.4% 32.6% 36.8% 37.0% 35.2%
Research and Development 16.2% 17.7% 16.0% 16.7% 16.2% 17.6%
Selling and General Admninistrative 14.3% 11.4% 12.6% 15.5% 14.9% 12.1%
Share in Earnings of Joint Ventures -4.1% -3.4% -2.5% -0.8% -0.6% -0.5%
Operating Margin 2.3% 2.5% 3.1% 4.4% 6.3% 5.5%
Financial Income 0.0% 0.6% 0.5% 0.6% 1.0% 0.7%
Financial Expenses -0.2% -0.6% -1.2% -1.0% -1.2% -0.7%
Income before Taxes 2.2% 2.5% 2.4% 4.0% 6.0% 5.5%
Provision for (Benefit from) Income Taxes 0.7% 0.8% 1.1% 1.2% 1.8% 1.1%
Net Margin 1.5% 1.7% 1.2% 2.8% 4.2% 4.4%
YEAR-TO-YEAR GROWTH
Revenue 7.4% -5.6% -13.0% -9.0% -8.0% -2.0%
Cost of Sales 10.7% -3.6% -11.7% -10.7% -12.4% -3.1%
Gross Profit 1.6% -9.3% -15.6% -5.8% 0.7% 0.1%
Research and Development -5.4% 4.6% 13.1% 6.3% -8.3% -2.7%
Selling and General Admninistrative 18.7% -16.3% -11.7% 2.1% -3.8% 4.2%
Share in Earnings of Joint Ventures -3558.1% -1090.1% -14.3% 83.4% 85.6% 84.0%
Operating Income -58.0% -68.7% -71.2% 11.6% 149.0% 118.5%
Financial Income -99.2% -73.1% -73.6% -77.9% 11650.0% 1.4%
Financial Expenses 84.5% 52.4% 18.5% 4.2% -654.4% -2.0%
Income before Taxes -60.5% -72.3% -78.8% -29.4% 154.3% 118.2%
Provision for (Benefit from) Income Taxes -59.2% -68.9% -73.2% -26.6% 154.3% 33.7%
Net Income -61.0% -73.7% -82.2% -30.5% 154.3% 159.1%
* Restated according to IFRS and IAS regulations
TBR

TBR
www.tbri.com
Appendix – Income Statement
ERICSSON
Consolidated Income Statement
(In $ Thousands Except per Share Data)
Revenue 6,595,963
$ 6,379,894
$ 8,329,952
$ 6,354,927
$ 6,351,013
$ 6,023,745
$
Cost of Sales 4,368,172 4,184,517 5,617,038 4,018,598 4,002,812 3,905,505
Gross Profit 2,227,792 2,195,377 2,712,914 2,336,329 2,348,201 2,118,240
Research and Development 1,069,052 1,129,153 1,328,897 1,060,188 1,026,155 1,059,120
Selling and General Admininistrative 941,540 725,335 1,045,724 987,217 947,648 728,145
Other Operating Revenue and Costs 207,460 30,503 125,378 42,543 66,195 33,098
Share in Earnings of Joint Ventures -271,216 -214,207 -208,631 -52,404 -40,776 -33,098
Operating Income 153,445 157,186 255,041 279,063 399,818 330,975
Financial Income 506 40,670 44,839 39,162 62,223 39,717
Financial Expenses -9,994 -40,396 -102,673 -61,701 -78,904 -39,717
Income before Taxes 143,957 157,460 197,207 256,524 383,137 330,975
Provision for (Benefit from) Income Taxes 43,137 51,388 93,677 77,056 114,782 66,195
Net Income 100,821 106,073 103,530 179,468 268,355 264,780
Revenue 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Cost of Sales 66.2% 65.6% 67.4% 63.2% 63.0% 64.8%
Gross Margin 33.8% 34.4% 32.6% 36.8% 37.0% 35.2%
Research and Development 16.2% 17.7% 16.0% 16.7% 16.2% 17.6%
Selling and General Admninistrative 14.3% 11.4% 12.6% 15.5% 14.9% 12.1%
Share in Earnings of Joint Ventures -4.1% -3.4% -2.5% -0.8% -0.6% -0.5%
Financial Income 0.0% 0.6% 0.5% 0.6% 1.0% 0.7%
Financial Expenses -0.2% -0.6% -1.2% -1.0% -1.2% -0.7%
Income before Taxes 2.2% 2.5% 2.4% 4.0% 6.0% 5.5%
Provision for (Benefit from) Income Taxes 0.7% 0.8% 1.1% 1.2% 1.8% 1.1%
Net Margin 1.5% 1.7% 1.2% 2.8% 4.2% 4.4%
YEAR-TO-YEAR GROWTH
Revenue 7.4% -5.6% -13.0% -9.0% -8.0% -2.0%
Cost of Sales 10.7% -3.6% -11.7% -10.7% -12.4% -3.1%
Gross Profit 1.6% -9.3% -15.6% -5.8% 0.7% 0.1%
Research and Development -5.4% 4.6% 13.1% 6.3% -8.3% -2.7%
Selling and General Admninistrative 18.7% -16.3% -11.7% 2.1% -3.8% 4.2%
Share in Earnings of Joint Ventures -3558.1% -1090.1% -14.3% 83.4% 85.6% 84.0%
Financial Income -99.2% -73.1% -73.6% -77.9% 11650.0% 1.4%
Financial Expenses 84.5% 52.4% 18.5% 4.2% -654.4% -2.0%
Income before Taxes -60.5% -72.3% -78.8% -29.4% 154.3% 118.2%
Provision for (Benefit from) Income Taxes -59.2% -68.9% -73.2% -26.6% 154.3% 33.7%
Net Income -61.0% -73.7% -82.2% -30.5% 154.3% 159.1%
* Restated according to IFRS and IAS regulations
TBR

TBR
www.tbri.com
Appendix – Balance Sheet
ERICSSON
Consolidated Balance Sheet
(In Thousands Swedish Kronor (SEK))
FISCAL QUARTER 2Q09 3Q09 4Q09 1Q10 2Q10
CALENDAR QUARTER 2Q09 3Q09 4Q09 1Q10 2Q10
ASSETS
Cash and Equivalents 75,519,000 79,789,000 76,724,000 77,855,000 67,590,000
Inventories, Net 29,036,000 26,774,000 22,718,000 24,126,000 29,397,000
Accounts Receivable - Trade 69,374,000 62,425,000 66,410,000 62,695,000 69,385,000
Short-term Customer Financing 2,161,000 1,875,000 1,444,000 1,885,000 2,132,000
Other Receivables 16,744,000 17,286,000 15,146,000 15,853,000 17,429,000
Total Current Assets 192,834,000 188,149,000 182,442,000 182,414,000 185,933,000
Tangible Assets (P,PE) 10,161,000 9,468,000 9,606,000 9,319,000 9,810,000
Intangible Assets 44,618,000 40,719,000 48,193,000 46,934,000 49,510,000
Equity in Associated Companies 14,661,000 12,279,000 11,578,000 11,286,000 11,596,000
Other Investments 306,000 291,000 256,000 240,000 266,000
Long-term Customer Financing 987,000 854,000 830,000 979,000 969,000
Deferred Tax Assets 13,676,000 13,946,000 14,327,000 14,710,000 16,053,000
Other Long-term Receivables 4,071,000 2,567,000 2,577,000 1,948,000 2,692,000
Total Non-current Assets 88,480,000 80,124,000 87,367,000 85,416,000 90,896,000
Total Assets 281,314,000 268,273,000 269,809,000 267,830,000 276,829,000
LIABILITIES AND EQUITY
Interest-bearing Liabilities 3,573,000 3,152,000 2,124,000 2,017,000 3,797,000
Accounts Payable 19,722,000 16,887,000 18,864,000 17,806,000 20,266,000
Other Current Liabilities 66,180,000 61,759,000 64,499,000 64,230,000 69,113,000
Total Current Liabilities 89,475,000 81,798,000 85,487,000 84,053,000 93,176,000
Pensions Provisions 8,525,000 8,606,000 8,994,000 8,061,000 8,498,000
Long-term Liabilities 40,370,000 38,440,000 34,301,000 34,263,000 34,731,000
Total Liabilities 138,370,000 128,844,000 128,782,000 126,377,000 136,405,000
Minority Interest in Equity of Consolidated
Subsidiaries 1,286,000 1,051,000 1,157,000 1,163,000 2,115,000
Total Stockholders' Equity 141,658,000 138,378,000 139,870,000 140,290,000 138,309,000
Total Liabilities and Equity 281,314,000 268,273,000 269,809,000 267,830,000 276,829,000
FINANCIAL RATIOS
Days Sales Outstanding 119.74 121.00 102.46 125.08 130.17
Turns on Inventory 4.62 4.37 6.36 4.87 4.52
Fixed Asset Turnover (Tangible Assets) 20.58 18.92 24.47 19.07 20.06
Days Inventory Outstanding 78.93 83.61 57.41 74.92 80.77
Days Cash Outstanding 130.35 154.65 118.37 155.32 126.81
Total Asset Turnover 0.74 0.68 0.87 0.67 0.70
Debt/Asset Ratio 0.49 0.48 0.48 0.47 0.49
Current Ratio 2.16 2.30 2.13 2.17 2.00
Return on Assets 3.6% 2.7% 1.5% 1.3% 1.8%
Return on Equity 7.0% 5.4% 2.9% 2.5% 3.4%
Annualized Revenue per Employee (SEK) 2,809,623 2,728,459 2,587,536 2,457,634 2,334,727
Annualized Revenue per Employee ($US) 355,417
$ 374,890
$ 369,500
$ 346,207
$ 309,094
$
SEK to $ Conversion Rate 0.127 0.137 0.143 0.14087 0.13239
Employee Count 77,248 82,526 82,493 86,537 87,413
TBR

TBR
www.tbri.com
Appendix – Balance Sheet
ERICSSON
Consolidated Balance Sheet
(In $ Thousands)
ASSETS
Cash and Equivalents 9,553,154
$ 10,963,009
$ 10,956,187
$ 10,967,434
$ 8,948,240
$
Inventories, Net 3,673,054 3,678,748 3,244,130 3,398,630 3,891,869
Accounts Receivable - Trade 8,775,811 8,577,195 9,483,348 8,831,845 9,185,880
Short-term Customer Financing 273,367 257,625 206,203 265,540 282,255
Other Receivables 2,118,116 2,375,096 2,162,849 2,233,212 2,307,425
Total Current Assets 24,393,501 25,851,673 26,052,718 25,696,660 24,615,670
Tangible Assets (P,PE) 1,285,367 1,300,903 1,371,737 1,312,768 1,298,746
Intangible Assets 5,644,177 5,594,791 6,881,960 6,611,593 6,554,629
Equity in Associated Companies 1,854,617 1,687,135 1,653,338 1,589,859 1,535,194
Other Investments 38,709 39,983 36,557 33,809 35,216
Long-term Customer Financing 124,856 117,340 118,524 137,912 128,286
Deferred Tax Assets 1,730,014 1,916,180 2,045,896 2,072,198 2,125,257
Other Long-term Receivables 514,982 352,706 367,996 274,415 356,394
Total Non-current Assets 11,192,720 11,009,038 12,476,008 12,032,552 12,033,721
Total Assets 35,586,221 36,860,710 38,528,725 37,729,212 36,649,391
LIABILITIES AND EQUITY
Interest-bearing Liabilities 451,985 433,085 303,307 284,135 502,685
Accounts Payable 2,494,833 2,320,274 2,693,779 2,508,331 2,683,016
Other Current Liabilities 8,371,770 8,485,687 9,210,457 9,048,080 9,149,870
Total Current Liabilities 11,318,588 11,239,045 12,207,544 11,840,546 12,335,571
Pensions Provisions 1,078,413 1,182,464 1,284,343 1,135,553 1,125,050
Long-term Liabilities 5,106,805 5,281,656 4,898,183 4,826,629 4,598,037
Total Liabilities 17,503,805 17,703,166 18,390,070 17,802,728 18,058,658
Minority Interest in Equity of Consolidated
Subsidiaries 162,679 144,407 165,220 163,832 280,005
Total Stockholders' Equity 17,919,737 19,013,137 19,973,436 19,762,652 18,310,729
Total Liabilities and Equity 35,586,221 36,860,710 38,528,725 37,729,212 36,649,391
FINANCIAL RATIOS
Days Sales Outstanding 119.74 121.00 102.46 125.08 130.17
Turns on Inventory 4.62 4.37 6.36 4.87 4.52
Fixed Asset Turnover (Tangible Assets) 20.58 18.92 24.47 19.07 20.06
Days Inventory Outstanding 78.93 83.61 57.41 74.92 80.77
Days Cash Outstanding 130.35 154.65 118.37 155.32 126.81
Total Asset Turnover 0.74 0.68 0.87 0.67 0.70
Debt/Asset Ratio 0.49 0.48 0.48 0.47 0.49
Current Ratio 2.16 2.30 2.13 2.17 2.00
Return on Assets 3.6% 2.7% 1.5% 1.3% 1.8%
Return on Equity 7.0% 5.4% 2.9% 2.5% 3.4%
Annualized Revenue per Employee ($US) 355,417
$ 374,890
$ 369,500
$ 346,207
$ 309,094
$
Employee Count 77,248 82,526 82,493 86,537 87,413
TBR

TBR
www.tbri.com
Appendix – Revenue Model
IN SEK MILLIONS
Reported Revenue 52,142 46,433 58,333 45,112 47,972 45,500
Networks 28,795 24,504 31,844 24,704 25,472 24,000
Global Services 20,019 18,578 23,137 18,098 20,080 19,300
Professional Services 14,077 12,780 16,466 13,251 14,838 14,000
Managed Services 4,587 3,570 5,098 4,888 5,642 4,500
Network Rollout 5,942 5,798 6,671 4,847 5,242 5,300
Multimedia 3,328 3,351 3,352 2,310 2,420 2,200
Reported Revenue 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Networks 55.2% 52.8% 54.6% 54.8% 53.1% 52.7%
Global Services 38.4% 40.0% 39.7% 40.1% 41.9% 42.4%
Professional Services 27.0% 27.5% 28.2% 29.4% 30.9% 30.8%
Managed Services 8.8% 7.7% 8.7% 10.8% 11.8% 9.9%
Network Rollout 11.4% 12.5% 11.4% 10.7% 10.9% 11.6%
Multimedia 6.4% 7.2% 5.7% 5.1% 5.0% 4.8%
YEAR-TO-YEAR GROWTH
Reported Revenue NA NA NA -9.0% -8.0% -2.0%
Networks NA NA NA -14.3% -11.5% -2.1%
Global Services NA NA NA 3.5% 0.3% 3.9%
Professional Services NA NA NA 3.5% 5.4% 9.5%
Managed Services NA NA NA 17.0% 23.0% 26.1%
Network Rollout NA NA NA 3.4% -11.8% -8.6%
Multimedia NA NA NA -28.7% -27.3% -34.3%
ADJUSTED OPERATING INCOME
Networks 1,265 1,138 2,128 1,540 2,507 1,100
Global Services 2,249 1,426 1,076 1,325 1,377 1,500
Network Rollout (16) (202) (271) (94) 46 (200)
Multimedia 18 330 263 (335) (479) 200
Unallocated (323) (168) (287) (158) (128) (200)
Total Adjusted Operating Income 3,209 2,726 3,180 2,372 3,277 2,600
ADJUSTED OPERATING MARGIN
Networks 4.4% 4.6% 6.7% 6.2% 9.8% 4.6%
Global Services 11.2% 7.7% 4.7% 7.3% 6.9% 7.8%
Network Rollout -0.3% -3.5% -4.1% -1.9% 0.9% -3.8%
Multimedia 0.5% 9.8% 7.8% -14.5% -19.8% 9.1%
Total Adjusted Operating Margin 6.2% 5.9% 5.5% 5.3% 6.8% 5.7%
SOURCE: TBR ESTIMATES AND ERICSSON
ERICSSON'S REVENUE MODEL
TBR

TBR
www.tbri.com
Appendix – Global Services Revenue Model
IN SEK MILLIONS
Total Ericsson Global Services 20,019 18,578 23,137 18,098 20,080 19,300
Managed Services 4,587 3,570 5,098 4,888 5,642 4,500
Network Rollout 5,942 5,798 6,671 4,847 5,242 5,300
PERCENTAGE OF GLOBAL SERVICES REVENUE
Total Ericsson Global Services 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Managed Services 22.9% 19.2% 22.0% 27.0% 28.1% 23.3%
Network Rollout 29.7% 31.2% 28.8% 26.8% 26.1% 27.5%
YEAR-TO-YEAR GROWTH
Total Ericsson Global Services NA NA NA 3.5% 0.3% 3.9%
Professional Services NA NA NA 3.5% 5.4% 9.5%
Managed Services NA NA NA 17.0% 23.0% 26.1%
Network Rollout NA NA NA 3.4% -11.8% -8.6%
ERICSSON GLOBAL SERVICES REVENUE MODEL
TBR

TBR
www.tbri.com
Appendix – Geographic Model
IN SEK MILLIONS
North America 5,915 4,144 9,681 9,920 13,515
Latin America 4,949 5,199 6,011 4,140 4,350
Northern Europe Central Asia 2,975 2,821 3,590 2,402 2,774
Western Central Europe 5,609 5,720 6,300 5,468 4,571
Mediterranean 7,012 5,394 7,235 5,285 5,831
Middle East 4,900 4,688 5,172 4,123 3,931
Sub Saharan Africa 3,758 3,321 3,930 2,525 3,056
India 3,768 4,327 3,517 2,405 1,399
China North East Asia 7,398 5,831 7,591 5,170 4,771
South East Asia Oceania 5,858 4,987 5,305 3,673 3,773
Total Revenue 52,142 46,433 58,333 45,112 47,972
IN USD MILLION
North America 748 569 1,382 1,397 1,789
Latin America 626 714 858 583 576
Northern Europe Central Asia 376 388 513 338 367
Western Central Europe 710 786 900 770 605
Mediterranean 887 741 1,033 744 772
Middle East 620 644 739 581 520
Sub Saharan Africa 475 456 561 356 405
India 477 595 502 339 185
China North East Asia 936 801 1,084 728 632
South East Asia Oceania 741 685 758 517 499
Total Revenue 6,596 6,380 8,330 6,355 6,351
North America 11.3% 8.9% 16.6% 22.0% 28.2%
Latin America 9.5% 11.2% 10.3% 9.2% 9.1%
Northern Europe Central Asia 5.7% 6.1% 6.2% 5.3% 5.8%
Western Central Europe 10.8% 12.3% 10.8% 12.1% 9.5%
Mediterranean 13.4% 11.6% 12.4% 11.7% 12.2%
Middle East 9.4% 10.1% 8.9% 9.1% 8.2%
Sub Saharan Africa 7.2% 7.2% 6.7% 5.6% 6.4%
India 7.2% 9.3% 6.0% 5.3% 2.9%
China North East Asia 14.2% 12.6% 13.0% 11.5% 9.9%
South East Asia Oceania 11.2% 10.7% 9.1% 8.1% 7.9%
YEAR-TO-YEAR GROWTH
North America NA NA NA 98.4% 128.5%
Latin America NA NA NA -9.9% -12.1%
Northern Europe Central Asia NA NA NA -20.8% -6.7%
Western Central Europe NA NA NA -3.4% -18.5%
Mediterranean NA NA NA -17.9% -16.8%
Middle East NA NA NA -0.7% -19.8%
Sub Saharan Africa NA NA NA -48.6% -18.7%
India NA NA NA -43.1% -62.9%
China North East Asia NA NA NA -15.0% -35.5%
South East Asia Oceania NA NA NA -32.8% -35.6%
Total Revenue NA NA NA -9.0% -8.0%
SOURCE: ERICSSON AND TBR ESTIMATES. REVENUE FROM OTHER CATEGORY PRORATED AND INCLUDED
IN INDIVIDUAL GEOGRAPHIES
ERICSSON'S SALES BY MARKET REGION
TBR

TBR
www.tbri.com
Appendix – OPEX Model
IN SEK MILLIONS
Total Revenue 52,142 46,433 58,333 45,112 47,972
OPERATING EXPENSES BREAKOUT
SGA Expense 7,443 5,279 7,323 7,008 7,158
Sales Marketing Expense 4,838 3,431 4,760 4,555 4,653
General and Administrative Expense 2,605 1,848 2,563 2,453 2,505
RD Expense 8,451 8,218 9,306 7,526 7,751
Operating Expenses 15,894 13,497 16,629 14,534 14,909
SALES AND MARKETING EXPENSE BREAKOUT
Sales Expense 3,241 2,299 3,189 3,052 3,117
Partner and Channel Spending 774 549 762 729 744
Marketing Spending 822 583 809 774 791
Advertising 206 146 202 194 198
Total Sales and Marketing Expense 4,838 3,431 4,760 4,555 4,653
Total SGA Expense 14.3% 11.4% 12.6% 15.5% 14.9%
Sales and Marketing Expense 9.3% 7.4% 8.2% 10.1% 9.7%
Sales Expense 6.2% 5.0% 5.5% 6.8% 6.5%
Partner and Channel Spending 1.5% 1.2% 1.3% 1.6% 1.6%
Marketing Spending 1.6% 1.3% 1.4% 1.7% 1.6%
Advertising 0.4% 0.3% 0.3% 0.4% 0.4%
General and Administrative 5.0% 4.0% 4.4% 5.4% 5.2%
RD Expense 16.2% 17.7% 16.0% 16.7% 16.2%
Total Operating Expenses 30.5% 29.1% 28.5% 32.2% 31.1%
CORPORATEWIDE HEADCOUNT
Total Employees 77,248 82,526 82,493 86,537 87,413
ERICSSON OPERATING EXPENSE MODEL
TBR

TBR
www.tbri.com
Appendix – Headcount Model
CALENDAR 2Q09 3Q09 4Q09 1Q10 2Q10
FISCAL 2Q09 3Q09 4Q09 1Q10 2Q10
North America 5,284 11,199 11,222 13,450 13,857
Latin America 7,858 5,721 6,055 6,134 6,150
Northern Europe Central Asia 21,200 22,103 21,993 21,813 21,806
Sweden 18,605 18,311 18,217 18,082 18,070
Western Central Europe 11,822 11,701 11,622 11,418 11,174
Mediterranean 10,061 10,019 9,509 10,884 10,857
Middle East 3,867 3,778 3,744 3,598 3,568
Sub Saharan Africa 1,853 2,202 2,104 2,044 1,944
India 3,614 3,798 4,184 4,726 5,408
China North East Asia 6,409 6,773 6,894 7,400 7,668
South East Asia Oceania 5,280 5,232 5,166 5,070 4,981
Total Headcount 77,248 82,526 82,493 86,537 87,413
North America 6.8% 13.6% 13.6% 15.5% 15.9%
Latin America 10.2% 6.9% 7.3% 7.1% 7.0%
Northern Europe Central Asia 27.4% 26.8% 26.7% 25.2% 24.9%
Sweden 24.1% 22.2% 22.1% 20.9% 20.7%
Western Central Europe 15.3% 14.2% 14.1% 13.2% 12.8%
Mediterranean 13.0% 12.1% 11.5% 12.6% 12.4%
Middle East 5.0% 4.6% 4.5% 4.2% 4.1%
Sub Saharan Africa 2.4% 2.7% 2.6% 2.4% 2.2%
India 4.7% 4.6% 5.1% 5.5% 6.2%
China North East Asia 8.3% 8.2% 8.4% 8.6% 8.8%
South East Asia Oceania 6.8% 6.3% 6.3% 5.9% 5.7%
Total Headcount 100.0% 100.0% 100.0% 100.0% 100.0%
YEAR-TO-YEAR GROWTH
North America NA NA NA 146.9% 162.2%
Latin America NA NA NA -23.6% -21.7%
Northern Europe Central Asia NA NA NA 1.9% 2.9%
Sweden NA NA NA -3.9% -2.9%
Western Central Europe NA NA NA -1.7% -5.5%
Mediterranean NA NA NA 8.7% 7.9%
Middle East NA NA NA -8.8% -7.7%
Sub Saharan Africa NA NA NA 11.6% 4.9%
India NA NA NA 40.0% 49.6%
China North East Asia NA NA NA 22.7% 19.6%
South East Asia Oceania NA NA NA -2.9% -5.7%
Total Headcount NA NA NA 12.5% 13.2%
ERICSSON'S EMPLOYEES BY MARKET REGION
TBR

TBR
www.tbri.com
Appendix – Future Outlook Graph
IN SEK MILLIONS
Net Sales 52,142 46,433 58,333 45,112 47,972 45,500
Gross Profit 17,611 15,978 18,998 16,585 17,737 16,000
SGA 7,443 5,279 7,323 7,008 7,158 5,500
RD 8,451 8,218 9,306 7,526 7,751 8,000
Operating Income 1,213 1,144 1,786 1,981 3,020 2,500
Net Income 797 772 725 1,274 2,027 2,000
Gross Margin 33.8% 34.4% 32.6% 36.8% 37.0% 35.2%
SGA 14.3% 11.4% 12.6% 15.5% 14.9% 12.1%
RD 16.2% 17.7% 16.0% 16.7% 16.2% 17.6%
Net Margin 1.5% 1.7% 1.2% 2.8% 4.2% 4.4%
YEAR-TO-YEAR GROWTH
Net Sales 7.4% -5.6% -13.0% -9.0% -8.0% -2.0%
Gross Profit 1.6% -9.3% -15.6% -5.8% 0.7% 0.1%
SGA 18.7% -16.3% -11.7% 2.1% -3.8% 4.2%
RD -5.4% 4.6% 13.1% 6.3% -8.3% -2.7%
Net Income -61.0% -73.7% -82.2% -30.5% 154.3% 159.1%
ERICSSON FINANCIALS AND TBR QUARTERLY PROJECTION
TBR

TBR
www.tbri.com
Ericsson Acquisitions
Company Scope of Acquisition
LG-Nortel
June 2010
Ericsson paid $242 million for 50% plus one share in LG-Nortel. As controlling
stakeholder, Ericsson expands its position in South Korea by acquiring a strong RD and
sales channel, as well as an already established player in the Korean LTE market. The
joint venture, which was formed in 2005, had 1,300 employees and revenue of $650
million in 2009.
SinglePoint
February 2010
Ericsson acquired SinglePoint’s strategic operator and aggregation contract assets. The
purchase not only improves Ericsson’s premium and standard rate messaging reach, but
also takes the company to CSCA Tier 1 aggregator status in the United States.
LHS
February 2010
Ericsson took 100% ownership in LHS after acquiring the remaining shares from minority
shareholders through a squeeze-out process. As sole owner of LHS AG, Ericsson now
pairs its prepaid solutions with LHS’ postpaid offerings, providing a fully integrated end-to-
end charging and billing solution for mobile and fixed operators.
Pride
January 2010
Ericsson obtained 1,000 professionals from Pride, adding manpower and expertise to the
vendor’s growing services division, particularly in consulting and systems integration.
Appendix – Acquisitions and Alliances
Vodafone and Ericsson established a joint innovation center in Madrid to focus on
developing 2G and 3G RAN.
Vodafone
June 2010
Ericsson Alliances
Company Scope of Partnership

TBR
www.tbri.com
Ericsson Recent Product Announcements
Product Series Configuration
OpenStream
Catalog Gateway
May 2010
• Helps operators promote content in VoD libraries and differentiate TV offerings
• The Gateway is part of Ericsson’s on-demand solution that uses the OpenStream
Digital Services Platform
• Open interface works with third-party recommendation engines and web portals to find
content of user interest
• Gateway can be combined with the OpenStream Marketing Manager, which sends
consumers promotions for content that matches their interests
PKB-A Series
April 2010
Based on original eight-brick PKB technology, PKB-A offers delivery of 30A or 125W with
high efficiency
3-D Content
Delivery Solution
April 2010
3-D movie theater experience comprised of the Ericsson CExH42 MPEG-4 AVC HD
Contribution Encoder, the Ericsson RX8200 Receiver and Ericsson EN8190 HD encoder
IPTV Remote
February 2010
• Single digital interface for Internet video, TV, PC and mobile phone within the home
• Provides single interface for multiple devices without tying up a window on the TV
screen
Appendix – Recent Product Announcements

TBR
www.tbri.com
Ericsson Network Customer Deals
Company Scope of Deal
EMOBILE
Japan
July 2010
By the end of 2010, EMOBILE will deploy an HSPA Evolution network in Tokyo, Tokai and
Osaka using Ericsson equipment. Dual Cell HSPA technology supports download speeds up
to 42 Mbps, twice the peak rate of HSPA+.
BH Telecom
Bosnia
Herzegovina
July 2010
BH Telecom agreed to pay Ericsson Nikola Tesla, Ericsson’s subsidiary in Croatia, $10.2
million to expand its 2G and 3G networks.
Batelco
Bahrain
June 2010
Batelco will pay Ericsson $38.5 million through 2010 for RBS 6000 equipment. Batelco will
use the multi-radio base stations to expand its existing HSPA network and prepare for rolling
out LTE at a later date.
CableTica
Costa Rica
June 2010
Ericsson will build, operate and manage a fiber-optic transport network for CableTica in Costa
Rica under a five-year contract. Ericsson will construct the optical network using equipment
from its MHL 3000 and OMS 1400 portfolios.
Telstra
Australia
May 2010
Telstra is using Ericsson’s MHL 3000 DWDM solution in its Next IP network connecting
Melbourne and Sydney to boost its transmission rate from 10 Gbps to 40 Gbps.
Indosat
Indonesia
May 2010
Under a three-year contract, Ericsson will deploy an HSPA Evolution network with peak data
rates up to 42 Mbps for Indosat in Indonesia. As part of the agreement, Ericsson will also
leverage alternative energy to reduce the network’s energy consumption by nearly 50% as
well as provide a range of network design, deployment, training and support services.
Ericsson will employ its RBS 6000, MSS Blade Cluster, and MINI-LINK TN for the
infrastructure buildout. Upon completion, Indosat’s network will be enabled for a seamless
upgrade to LTE.
Appendix – Customer Deals

TBR
www.tbri.com
Cross Wireless
United States
April 2010
Cross Wireless (doing business as Sprocket Wireless) will upgrade to a 3G CDMA
network using Ericsson’s 10G SmartEdge 600 for the IP wireless backhaul, multicast
IPTV traffic and internet service aggregation.
Edgenics
United States
April 2010
Ericsson will supply, deploy, host and manage Edgenics’ new packet core network to
better serve its customers in the Southeast United States. The network will reach
approximately 3.5 million people in over 750 communities, as well as connect 16
universities through the Intercollegiate Online News Network (ICONN).
Bharti Airtel
India
March 2010
As a part of a $1.3 billion contract, Ericsson will supply Bharti Airtel with energy-
efficient 2G/2.5G radio base stations, circuit and packet core, microwave
transmission and Intelligent Network to upgrade 15 of Airtel’s 22 telecom circles. In
addition to improved voice quality and faster data access, the upgrade will allow for a
seamless 3G rollout.
China Mobile
China Unicom
China
March 2010
Ericsson signed a 2G/3G frame agreement with both China Mobile and China
Unicom for a combined $1.8 billion. Under the agreement, Ericsson will provide China
Mobile with a multistandard radio base station (RBS 6000) and mobile soft-switching
technology, worth $1 billion of the total contract. Ericsson will also provide China
Unicom with HSPA Evolution technology, as well as IP routers, fiber access
technologies GPON and 40G WDM, and IMS worth the other $800 million of the total
contract.
MTN Ghana
Ghana
March 2010
MTN Ghana and Ericsson successfully trialed UMTS 900 MHz in Africa, better
extending mobile broadband coverage to rural areas. In the planned 2Q10 rollout,
Ericsson will be responsible for the access, transport and transmission of the 3G
UMTS 900 MHz.

TBR
www.tbri.com
Softbank
Mobile
Japan
February 2010
Ericsson will provide Softbank Mobile RBS6000 HSPA/LTE multistandard base stations and
rollout services to upgrade its network with multicarrier HSPA technology. The base stations
will help Softbank handle a surge in data traffic caused by the use of smartphones.
ATT
United States
February 2010
Ericsson expanded its key supplier role with ATT by signing a multiyear deal, agreeing to
deliver LTE network equipment and design, deploy and optimize ATT’s LTE network. LTE
field trials are scheduled for later this year, with commercial deployment scheduled to begin
in 2011.
Netgear
World
February 2010
Netgear will integrate Ericsson’s HSPA technology with their 802.11n wireless and Ethernet
LAN for their new routers.
3 Scandinavia
Denmark,
Sweden
January 2010
Ericsson will supply Denmark and four major cities in Sweden with the world’s first 84 Mbps
HSPA network. The three-year contract includes an HSPA Evolution capacity upgrade of 3
Scandinavia’s existing 3G network, a new WCDMA/HSPA radio access network, IP-based
optical and microwave backhaul and additional support services.
TeliaSonera
Sweden
Norway
January 2010
Ericsson will supply TeliaSonera with an LTE core and radio network for an undisclosed
sum. TeliaSonera plans to bring 4G service to Sweden’s 25 largest municipalities and
recreation areas, as well as Norway’s four largest municipalities, including Oslo, in 2010-
2011. Huawei and Nokia Siemens also won parts of the infrastructure deal, with Huawei
supplying equipment for Oslo, and Nokia Siemens and Ericsson supplying radio network
equipment for the remaining municipalities. In December, Ericsson supplied TeliaSonera
with LTE Radio Base Stations, an Evolved Packet core network, a mobile backhaul solution
with SmartEdge 1200 routers, an EDA multi-access aggregation switch and an Operation
and Management System for the rollout of the operator’s LTE network in Stockholm.

TBR
www.tbri.com
Ericsson Application Customer Deals
Curitiba
Brazil
May 2010
Ericsson and Dataprom supplied the Brazilian city of Curitiba with an Electronic
Ticketing and Fleet Management System to obtain information and monitor the
city’s fleet of public buses. This M2M application uses a 3G network to relay data
from the buses to Curitiba’s network management center. Ericsson equipped the
city’s buses with mobile broadband modules.
Digi International
United States
March 2010
Anticipating future growth in M2M connections, Ericsson agreed to provide Digi
International with HSPA mobile broadband modules. The mobile broadband module
will deploy in selected Digi Transport and Digi Connect cellular gateways to allow
for rapid global adoption of 3G connectivity in M2M applications.
Telekom Austria
Austria
February 2010
Ericsson will provide Telekom Austria with IPTV middleware, the OpenStream
Digital Services Platform and the WatchPoint Content Management System to
improve Telekom’s current IPTV platform, eliminate the barriers between the TV set
and PCs and introduce a new generation of user interface.

TBR
www.tbri.com
Ericsson Service Customer Deals
Endesa
Spain
July 2010
Ericsson won a four-year managed services contract from Endesa, the largest
electric utility operating in Spain. As part of the agreement, Ericsson will assume
responsibility for Endesa’s corporate network, which services all of the utility’s
23.5 million customers across Spain.
BH Telecom
Bosnia Herzegovina
April 2010
Ericsson Nikola Tesla, Ericsson’s Croatia-based subsidiary, will manage BH
Telecom’s network under a two-year managed services contract worth $10 million.
Telefónica
Brazil
May 2010
Ericsson will operate Telefónica’s network operations center in Sao Paulo under a
three-year deal. The managed services contract covers Telefónica’s fixed core,
transmission, and ADSL networks as well as spare parts management. About 100
Telefónica staff will transfer to Ericsson to aid in supporting the network.
Mobilicity
Canada
April 2010
Ericsson will manage Mobilicity’s 3G wireless network over the next five years.
Financial terms were not disclosed, but the network covers 16 million Canadians
and exemplifies Ericsson’s push into North America via Nortel.
Crnogorski Telekom
(Montenegro Telecom)
Croatia
March 2010
Croatian Ericsson Nikola Tesla, a subsidiary of Ericsson, has entered a four-year,
€11.7 million (or $16.2 million) deal with Crnogorksi Telekom. The deal will make
the latest Ericsson solutions and support services available to Crnogorksi
Telekom.

TBR
www.tbri.com
Appendix – Management
Ericsson Management
Name Position
Hans Vestberg CEO and President
Jan Frykhammar Executive Vice President, CFO and Head of Group Function Finance
Johan Wibergh Executive Vice President and Head of Business Unit Networks
Magnus Mandersson Senior Vice President and Head of Business Unit Global Services
Rima Qureshi Senior Vice President and Head of Business Unit CDMA Mobile Systems
Jan Wäreby Senior Vice President and Head of Business Unit Multimedia
Håkan Eriksson
Senior Vice President, CTO, Head of Ericsson Silicon Valley and Head of
Group Function Technology Portfolio Management
Torbjörn Possne Senior Vice President and Head of Group Function Sales and Marketing
Carl Olof Blomqvist
Senior Vice President, General Counsel and Head of Group Function Legal
Affairs
Marita Hellberg
Senior Vice President, Head of Group Function Human Resources and
Organization
Henry Sténson Senior Vice President and Head of Group Function Communications
Gilles Delfassy President and CEO, ST-Ericsson
Mats H Olsson Head of Region Greater China North East Asia
Douglas Gilstrap Senior Vice President and Head of Group Function Strategy
Cesare Avenia Chief Brand Officer
Bert Nordberg President, Sony Ericsson
Angel Ruiz Head of Region North America

TBR
T ECH N O LO G Y B U SIN ESS RESEARCH , IN C.
For additional information please contact:
John Byrne (john.byrne@tbri.com), NBQ Director
James McIlroy (mcilroy@tbri.com), Vice President of Sales

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