Telecoms equipment maker Ericsson expects the market for managing and rolling out operator networks this year to grow almost 10 percent to around $55 billion, its services unit chief said on May 12. Hans Vestberg also said he saw growing operator interest in outsourcing services, which generated 16 percent of group sales in the first quarter of 2005 "There's been a clear shift in our discussions with operators. In the beginning, it was much more "why" and "we're not interested", now they're asking how it works," Vestberg told reporters on the sidelines of the company's capital markets day.
The company said $190 billion to $195 billion were spent each year on the kind of services it has in its portfolio.
"But the main part of the services are made by the operators themselves," Vestberg said.
Vestberg said operators would outsource professional services to the tune of $40 billion, while network rollout services would bring in $15 billion to the service providers.
He said this compared with a total $50 billion to $51 billion last year, while internal spending on services was likely to be roughly flat in 2005 on 2004.
Ericsson has declined to give details on the profitability of its services business, but Vestberg said margins would not suffer from the growth.
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