Ericsson Appoints New CEO, Hans Vestburg

Posted by: Olga Kharif on June 25, 2009

I just spoke with Hans Vestburg, who will becomeEricsson’s new president and CEO come Jan. 1, 2010. Vestburg, who currently serves as Ericsson’s CFO, replaces Carl-Henric Svanberg, who has accepted the position of chairman of BP, Ericsson announced this morning.

The good news for investors is, Vestburg is unlikely to implement any dramatic changes right the way. “We are very much the same [with Svanberg] in terms of strategy and where we are going,” Vestburg says. He does say the telecom equipment and services supplier will focus more on helping its carriers customers with gear and advice as their fixed and mobile broadband networks converge. Ericsson will also help carriers support new types of devices, such as home appliances, cameras and parking meters, which will connect to the carriers’ wireless networks.

Vestburg emphasized that, as of right now, he is not considering implementing any additional cost cuts at the company. He also reiterated his company’s support for Sony Ericsson, its handset-making joint venture that’s been flailing as of late. “What we are very focused on is that we give them the right support so they can return to profit,” Vestburg says. He wouldn’t comment on whether Ericsson or Sony are considering exiting the joint venture.

Reader Comments

Interconnect

June 30, 2009 6:55 AM

Mr. Vestburg as per my comment on "considering exiting" joint venture, which may please be reviewed. Siemens with its traditional roots in power and telecommunication infrastructure and engineering in the Middle East has norusihed/nurtured with the formation of Nokia Siemens Networks company which being a joint venture brought them strength, sustainability, which Ericsson has not. Ericsson is a focused telecommunication company and not an engineering conglomerate. Ericsson is more professional, respectable with a history of inventiveness and dedication. Siemens being plagued with scandals of briberies, kick backs, which is not with Ericsson. After several M&A, privatisations, de-regulations the digitalisatiion, convergence of the IP with circuit and switched networks. I see the excellent future of Sony Ericsson as I see future of Huawei, ZTE in future with the innovations. Unlike Huawei, ZTE Ericsson has lot to license to the Chinese companies, and also take license from them when and wherever its required.

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Bloomberg Businessweek writers Peter Burrows, Cliff Edwards, Olga Kharif, Aaron Ricadela, and Douglas MacMillan, dig behind the headlines to analyze what’s really happening throughout the world of technology. Tech Beat covers everything from tech bellwethers like Apple, Google, and Intel and emerging new leaders such as Facebook to new technologies, trends, and controversies.

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