Ericsson To Lay Off CDMA Infrastructure Staff

Despite some recent great global financial results, Ericsson (the wireless infrastructure company) is set to pass out over 250 pink slips, and to phase out their San Diego CDMA operation. These functions will be moved elsewhere in the Ericsson family. While Ericsson is doing well in developing markets, and specifically with its GSM kit, the company said, "its North American operation was dragged down 24 percent due to reduced capital spending." I'm not sure that rings true. The CDMA carriers: VZW, SPCS, Alltel, USCC are growing their subscriber bases at a rapid rate, while at least three of the carriers are upgrading to EV-DO at this juncture. So what is really happening is that the CDMA carriers are reducing their capital spending on Ericsson infrastructure.

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