Ericsson results

Ericsson is to buy most assets of Marconi (UK) for € 1.8bn.

Most of assets will be transferred to Ericsson, including the brand, about 6700 employees, and all optical networking business, broadband and fixed radio access network business, softswitch business, data networking equipment and services businesses, and relevant telecom services activities. Ericsson will reorganize them in two divisions: Network Equipment and Network Services. As a consequence, 15% to 20% of the workforce (about 1300 jobs) will be laid off.

The remaining part of Marconi will form a new company, called Telent, which will be Ericsson's preferred services partner in the U.K. Telent will retain the System X (a TDM carrier office exchange), payphones and the U.K. Telecommunications Services business (IC&M).