Ericsson pays $687 million to abandon Business Support System

Stefan Mileschin · 10th January 2019, 12:25

No one was interested

Swedish mobile telecom equipment maker Ericsson will book charges of $687 million for the fourth quarter as it abandons an unsuccessful strategy for its loss-making Business Support System (BSS) unit.

BSS looked good on paper. It provided real-time charging and billing products and had tried to scale up to help customers with large transformation projects. However the full-stack revenue manager didn’t generate any revenue as customers ignored it.

Ericsson said in a statement. “Certain complex transformation projects experienced delays and cost overruns.”

The outfit said said it would speed up restructuring of the BSS business, part of its Digital Services business which accounts for around 17 percent of group sales, and concentrate on its core products, materially reducing BSS losses in 2019.

Ericsson shares rose sharply in 2018 as a cost savings and efficiency program started to yield success across many of its businesses after years of crisis during which telecom network operators reined in spending.

https://fudzilla.com/news/network/47...support-system

10th January 2019, 12:25	#1
Stefan Mileschin [M] Reviewer Join Date: May 2010 Location: Romania Posts: 148,652	Ericsson pays $687 million to abandon Business Support System No one was interested Swedish mobile telecom equipment maker Ericsson will book charges of $687 million for the fourth quarter as it abandons an unsuccessful strategy for its loss-making Business Support System (BSS) unit. BSS looked good on paper. It provided real-time charging and billing products and had tried to scale up to help customers with large transformation projects. However the full-stack revenue manager didn’t generate any revenue as customers ignored it. Ericsson said in a statement. “Certain complex transformation projects experienced delays and cost overruns.” The outfit said said it would speed up restructuring of the BSS business, part of its Digital Services business which accounts for around 17 percent of group sales, and concentrate on its core products, materially reducing BSS losses in 2019. Ericsson shares rose sharply in 2018 as a cost savings and efficiency program started to yield success across many of its businesses after years of crisis during which telecom network operators reined in spending. https://fudzilla.com/news/network/47...support-system

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
ZTE pays $900 million fine	Stefan Mileschin	WebNews	0	13th March 2017 08:45
Infosys pays $200 million for US firm	Stefan Mileschin	WebNews	0	17th February 2015 06:35
India demands IBM pays $866.20 million	Stefan Mileschin	WebNews	0	5th November 2013 07:03
Nokia Threatens to Abandon Business in India	Stefan Mileschin	WebNews	0	25th August 2013 08:15
Apple pays $20 million for clock design	Stefan Mileschin	WebNews	0	12th November 2012 08:27
Ericsson likely to buy Nokia Siemens Networks business arm	Stefan Mileschin	WebNews	0	4th September 2012 11:15
Facebook pays Microsoft $550 million	Stefan Mileschin	WebNews	0	25th April 2012 06:23
Facebook pays $65 million to ConnectU	jmke	WebNews	0	11th February 2009 19:30
Microsoft pays IBM $775 million to settle suit	Sidney	WebNews	2	1st July 2005 18:22
ASUS, SiS Abandon the Latest Chipset with Rambus Support	jmke	WebNews	0	2nd May 2004 15:53