Ericsson Forms Three Local Subsidiaries

Ericsson Australia will expand its enterprise segment operations following the announcement of three new wholly owned subsidiaries.

While the mobile Internet and Ericsson's current solutions will remain its focus, the company has created three new companies - Ericsson Equity Alliances, Ericsson AsiaPacificLab and Ericsson Corporate Networks - to expand into other markets.

The new companies, which will commence trading on 1 January 2001, will operate under the Ericsson brand and utilise common services.

Its current enterprise solutions division will be split into a product and channels area to create Ericsson Corporate Networks. Ericsson said this company would focus on voice, data and mobility products, solutions and services to medium and large customers.

Ericsson Equity Alliances will focus on partnering and supporting start-ups, including an incubator program in Australia, while Ericsson AsiaPacificLab will be the region's hub for global research and development.

"We recognised that some parts of the company were increasingly being put in a position where they needed to be able to address their markets differently, simply because those markets were developing in different directions," said Karl Sundstrom, Ericsson Australia's managing director.

"After some in-depth analysis, we decided that the best way to enable these business areas to realise their full potential both in delivery and in profitability was to allow them to spin off into separate, but wholly owned entities."

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