Service Provider Information Technology, or SPIT, is Light Reading's term for the evolving set of non-traditional telecom (and data networking) technologies that allow for a greater degree of flexibility in the creation, management, delivery, and monetization of new-generation communications services.Learn More
SPIT Infographic
What exactly is Service Provider IT and how does it relate to the communications ecosystem? Here's a graphic that'll give you a snapshot of what we're talking about and appeal to your inherent aesthetic sensibilities
SPIT Manifesto
What is SPIT, why is it 'hot stuff' and how does it relate to the major challenges facing communications service providers today? The updated SPIT Manifesto answers these questions and achieves the near impossible task of giving a slime green splat a happy home.Learn More
SPIT Video
For operators looking to develop, deliver and monetize new services, run their companies more efficiently and provide an overall better experience for their customers, Service Provider IT, or SPIT, is just as important as the network.Learn More
STOCKHOLM -- Today, Ericsson (NASDAQ:ERIC) will hold its annual Investor Day in Stockholm. President and CEO Hans Vestberg will elaborate on how Ericsson will leverage its current assets - technology leadership, services leadership, global scale - to move from being a leading mobile infrastructure vendor to become a leading Information and Communications Technology solutions provider in telecoms.
"This development will naturally imply a future business mix for Ericsson with more recurring software and services revenues. However, hardware will always be part of the mix and a key differentiator for Ericsson," says Hans Vestberg.
Ericsson is currently in a phase with a higher share of coverage than capacity projects due to a high proportion of hardware being rolled out. At the Investor Day Management will reiterate that this mix is expected to prevail short-term but that the negative impact from the network modernization projects in Europe will start to gradually decline end 2012. Hans Vestberg will point to the fact that the company presently has a selective approach to market share investments and a strong focus on commercial management. Management will also discuss some uncertainties going forward such as macroeconomic factors, the competitive situation and operator consolidation.
A market outlook for 2012-2015 will be presented. Ericsson estimates that the total network equipment market will show a compound annual growth rate (CAGR) of 3-5%. In Ericsson's key equipment market segments - radio, IP and transport, core - the CAGR is expected to be 4-6%. In radio a CAGR of 2-4% is expected, in IP and transport a CAGR of 6-8% and in core a CAGR of 0-2%. Ericsson expects the market for telecom services to show a CAGR of 5-7% in the same time period. The market for support solutions is forecasted to show a CAGR of 9-11%, including a CAGR of 12-14% for the media market. The market for OSS/BSS software and services is expected to show a CAGR of 5-7%.
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