Ericsson Sizes Services Market

STOCKHOLM -- Ericsson (NASDAQ:ERIC) today presents an industry measurement of actual external spending by operators on telecom services. The strategic importance of telecom services is growing in the industry and Ericsson is the industry leader.

Ericsson Global Services has been forecasting the telecom services market size for different segments since 2003. The global addressable market, as estimated by Ericsson, for the years 2003-2005 is now validated by independent research performed by Ernst & Young AB, (Sweden), and Ernst & Young LLP, (UK), member firms of Ernst & Young Global Limited. This extensive study confirms Ericsson's earlier estimates.

Based on the study the actual external spending by operators on telecom services for 2005 amounted to approximately USD 57 billion, which is in line with Ericsson's earlier estimate of USD 55 billion. Actual external spending for 2003 (USD 47 billion) and 2004 (USD 52 billion) show a consistent growth in the market. Ericsson's market outlook for 2006 remains and the early outlook for 2007 shows continued good growth for professional services.

Hans Vestberg, Executive Vice President and Head of Global Services, Ericsson says: "We are confident that we have a good understanding of the telecom services market, based upon our own experiences and forecasting as well as the recently completed independent market study."

There is a high activity level in telecom services in all regions of the world, but with differences in demand according to market maturity and end-user needs.

Hans Vestberg, says: "Based on the high telecom services activity, we will continue to dedicate our global and local scale and skill to support our customers in growing their business."

Ericsson AB (Nasdaq: ERIC)