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Ericsson issues gloomy outlook for networks business 

Swedish vendor expects up to 2% decline in addressable network infrastructure market in 2016-2018.
Ericsson warned that its current travails in the network infrastructure market will continue next year.
In an investor update, the Swedish kit maker said it expects the addressable market for its networks division – which accounts for the lion's share of the company's revenue – to see an annual CAGR of -2%-0% in 2016-2018.
"The negative industry trends from the first half of 2016, due to weaker demand for mobile broadband, are expected to prevail short-term," Ericsson warned.
"Therefore, the company is adapting operations to lower business volumes to secure resilience and competitiveness," the company said, which roughly translates to reducing costs and cutting jobs.
"Ericsson expects the market for mobile infrastructure will decline 10% to 15% during 2016 and a further decline of 2% to 6% in 2017," the vendor added.
Earlier this year, Ericsson reorganised its business into three segments: networks, IT & cloud, and media.
In 2016-2018, the addressable market for its IT & cloud business is expected to grow by 5%-7% per year, while the growth rate for the media division is expected to come in the range of 9%-11% over the same period.
These new growth areas are expected to offset the decline in networks; Ericsson said the company's overall addressable market is expected to grow by 1%-3% in 2016-2018.
"We are forcefully executing our strategy to drive incremental profit improvements through greater efficiency, monetising our installed base in networks and building a new revenue base in IT & cloud and media," said Ericsson's interim CEO Jan Frykhammar, who will hand over the reins to Hans Vestberg's permanent successor, Börje Ekholm, on 16 January 2017.
"[Ericsson's] current focus is on speed, efficiency and fine tuning of strategy execution," Frykhammar added.

Source: Total Telecom