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ERICSSON

Ericsson bids for US border control deal

Ericsson, the world's biggest supplier of mobile telecommunication systems, is to bid for a contract to set up a 2.7 billion dollar surveillance system on the US-Mexico border, according to a news report on Saturday.

Dagens Industri said Ericsson would head up a consortium of mainly US companies to bid for the system, which has caused controversy in the United States.

Other members of the consortium include Computer Science Corporation, L3 and Flour, the report said.

It will be in competition with such major US players as Lockheed Martin, Northrop Grumman, Raytheon and Boeing.

“It is a very advanced system which requires communication, mobility and the transmission of information,” Ericsson’s project manager Eldar Hauge was quoted as saying.

He said that if the consortium won the contract the Swedish firm would be concerned with integrating the system and the transmission of information to frontier patrols.

The US Senate has approved a planned 600-kilometer hi-tech border barrier to stop illegal migrants crossing from Mexico, and President George W. Bush plans to send 6,000 troops to patrol the line.

The Mexican government is protesting against the plan.

SWEDEN AND UKRAINE

Ericsson suspends all Russia operations indefinitely

Swedish network equipment maker Ericsson said Monday that it was suspending all of its Russian operations over the war in Ukraine for the foreseeable future.

Ericsson suspends all Russia operations indefinitely

The telecom giant already announced in late February that it would stop all deliveries to Russia following Moscow’s February 24 invasion of Ukraine.

“In the light of recent events and of European Union sanctions, the company will now suspend its affected business with customers in Russia indefinitely,” Ericsson said in a statement.

The company added that it was “engaging with customers and partners regarding the indefinite suspension of the affected business.”

“The priority is to focus on the safety and well-being of Ericsson employees in Russia and they will be placed on paid leave,” it said.

READ ALSO: How has Sweden responded to Putin’s war in Ukraine so far?

Hundreds of Western firms ranging from Ikea to Coca-Cola, Goldman Sachs and McDonald’s have stopped operations in the country since the invasion, with French banking group Societe Generale announcing Monday it was selling its stake in Russia’s Rosbank.

Ericsson has around 600 employees in Russia, and is a “major supplier to the largest operator MTS and the fourth largest operator Tele2,” a company spokeswoman told AFP, adding that together with Ukraine, Russia accounts for less than two percent of revenue.

As a result, the equipment maker said it would record a provision for 900 million Swedish kronor ($95 million, 87 million euros) for the first quarter of 2022 for “impairment of assets and other exceptional costs,” though no staff redundancy costs were included.
Ericsson is due to publish its first quarter earnings on April 14.

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