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ERICSSON

Ericsson bids for Norway’s Tandberg Television

Ericsson, the world's leading supplier of mobile telecommunication networks, on Monday bid for Norway's Tandberg Television to beef up its service to operators who want to broadcast television via the Internet.

Ericsson, which said it already holds 11.7 percent of Tandberg and has “irrevocable” acceptances for a further 13 percent of the shares, bid 106 Norwegian kroner (17.3 dollars, 13.1 euros) per share in cash.

The bid is 10.4 percent higher than the 96 kroner offered by US networks group Arris in mid-January.

The Swedish company said the bid was a “significant step toward (a) world leadership position in IPTV,” (Internet Protocol Television), which allows people to access television via the Internet or their mobile phone.

It added that Tandberg would expand its customer base to include cable and satellite operators as well as broadcasters.

“IPTV for cable and telecom operators is the biggest networked multimedia opportunity going forward,” Ericsson chief executive Carl-Henric Svanberg said in a statement.

A large part of the expected traffic growth in the world’s mobile and fixed networks is expected to be generated by television services, Ericsson said.

Tandberg is a world leader in encoding and compression technology, making it possible to maximize picture quality while minimizing bandwidth in video applications.

Revenues in 2006 were 350 million dollars. It has customers in more than 100 countries and has some 870 employees.

The bid values Tandberg at 8.9 billion Swedish kronor (1.26 billion dollars, 958.4 million euros) after deduction of net cash.

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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