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Euronews: Ericsson Takes $1.2B Hit

December 20, 2012 | Paul Rainford |

Ericsson AB and Colt Technology Services Group Ltd. lead the way in today's pre-Christmas news rush.

  • Ericsson's fourth-quarter net income will suffer a non-cash hit of 8 billion Swedish kronor (US$1.22 billion) related to a writedown in the value of its 50 percent stake in chip vendor ST-Ericsson. Ericsson's current partner in the venture, STMicroelectronics NV, is quitting the business, but Ericsson says it has no plans to take full control of ST-Ericsson, though it does still see a future for the loss-making company. To that end, Ericsson expects the implementation of its "strategic options" related to the chip company will cost an additional SEK3 billion ($458 million) during the coming year.

  • Colt's decision to accelerate its transformation program will result in the loss of about 250 jobs, about 5 percent of the workforce, according to City A.M.

  • U.K. regulator Ofcom has announced the companies that have qualified to bid in the forthcoming 4G spectrum auction, and there are some lesser-known names in there with the big boys. As well as the big-four quartet of Everything Everywhere, Vodafone UK, Telefónica UK Ltd. (O2) and Hutchison 3G UK Ltd., say hello to HKT Ltd., MLL Telecom Ltd. and, intriguingly, something called Niche Spectrum Ventures, which is a subsidiary of BT Group.

    — Paul Rainford, Assistant Editor, Europe, Light Reading



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