Ericsson warns on 3G competition

Ericsson, the world’s leading supplier of telecommunications network equipment, said yesterday the 3G market was overcrowded, and that even the largest markets could not support more than four license holders. But Torbjorn Nilsson, head of marketing and strategy at the Swedish group, also said that the expected shakeout was not a sign of 3G’s failure – it was more a pre-condition for its eventual success. Debts, losses and the need for economies of scale would all drive consolidation, he added.