Ericsson sees 5 pc growth in GSM, WCDMA: CEO

Taipei, Sept 7: Ericsson, the top global mobile telecoms equipment maker, said on Thursday it expects growth of about 5 percent for the world's biggest mobile standard, GSM, and its successor, WCDMA, in 2006.

''We see moderate growth for the GSM, WCDMA markets, which is around 5 percent or so,'' Chief Executive Officer Carl-Henric Svanberg told reporters at a news conference in Taipei.

Svanberg also reiterated that the company's operating margins will improve in the fourth quarter.

In July, he had said Ericsson forecast margins to accelerate from the fourth quarter, meaning improvement should be expected more in the fourth quarter than the third.

Ericsson said last month its second-quarter pretax profit fell to 8.29 billion crowns ($1.14 billion) from 8.49 billion crowns a year ago.

The firm had suffered losses at its recently acquired fixed-line telecom equipment maker Marconi in the second quarter, sending gross margins below market forecasts.

Ericsson shares have declined 12 percent so far this year.

The company's major rivals include Nokia, Alcatel, Motorola and Nortel Networks.

(US$1=7.25 Swedish crowns) REUTERS