Ericsson dumps mobile modules biz

Ericsson has said that it will put a stop on its business of mobile broadband modules and will continue to focus on enabling wireless connectivity through its network infrastructure business and the joint venture ST-Ericsson.

The market for modules providing mobile broadband access is now well established and Ericsson has decided to phase out its mobile broadband modules business, and continue focusing on enabling wireless connectivity through its network infrastructure business and the joint venture ST-Ericsson, said the Swedish company.

''Our entry and investments on the market for mobile broadband modules have changed the industry for these modules, making it possible for a number of device manufacturers to include connectivity affordably. However, our position on the market does not provide the scale we need to achieve the desired profitability. We have therefore decided to phase out the business,'' said Johan Wibergh, head of business unit networks, Ericsson.

According to the company, a total of 160 employees will be affected by the decision and the Sweden based employees will be offered new positions within the company.

The company penetrated the market of mobile broadband modules in 2007 by developing and selling modules for building in mobile broadband into PCs.