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MOBILE PHONES

Ericsson predicts ten-fold jump in mobile data traffic by 2016

As smart phones increasingly take over, mobile data traffic is surging, a study by Swedish telecom equipment maker Ericsson showed on Monday.

Ericsson predicts ten-fold jump in mobile data traffic by 2016

And according to Ericsson, this type of traffic is set to increase tenfold over the next five years.

In its Traffic and Market Data report, which Ericsson said was based on measurements “recorded over several years in live networks covering all regions of the world,” the company said global smartphone traffic was expected to triple during 2011 alone.

“Mobile broadband subscriptions will reach almost five billion in 2016, up

from the expected 900 million by the end of 2011,” the company said, pointing out that “that would represent 60 percent year-on-year growth.”

The surge in internet access over the next five years, regardless of the device used, was expected to especially be driven by video, Ericsson said.

The report also signaled a growing digital divide between the smartphone haves and the have-nots.

“By 2016, users living (in urban areas covering) less than one percent of the Earth’s total area are set to generate around 60 percent of mobile traffic,” the report said.

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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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