Strong US Demand Would Offset AT&T Deal: Ericsson CEO

Wednesday, 23 Mar 2011 | 3:33 PM ET
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T-Mobile Sidekick

High consumer demand for broadband and mobile networks would offset any potential loss of margins at Ericsson caused by AT&T'spurchase of Deutsche Telekom T-Mobile USA, Ericsson’s CEO Hans Vestberg told CNBC Wednesday.

“What is important in this US market is that we have a consumer demand that is driving the mobile broadband and the mobile networks,” said Vestberg.

“People like you and me, we want to use that networks and that is, of course, important, it’s not like there are idle networks.”

Ericsson is a main supplier for both AT&T and T-Mobile . If regulators approve AT&T's $39 billion move to buy T-Mobile, it will create the largest US wireless carrier.

Turning his thoughts to Japan, Vestberg said it’s too early to tell if Ericsson’s supply chain will erode due to the Japanese disasters, but he noted that telecommunication there is up and running.

In addition to providing telecommunications equipment and related services to mobile and fixed network operators globally, Ericsson, according to its website, has more than 1,000 networks in more than 175 countries, and 40 percent of all mobile calls are made through its systems.

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