Ericsson set for significant South Korean splash-out

WHILE OTHERS are throwing denial of service attacks at South Korea, Ericsson has decided to lob a hefty $1.5 billion in its direction.

The money, which has 'next generation wireless technology' written on it, won't all be spent in a week's binge, or even in a year, but will be spread out over a five-year period.

Although much of it is set aside for establishing a research and development centre, we expect it won't all go to building costs but instead much of it will be used to boost Ericsson's wireless technologies like its fourth generation LTE (long-term evolution) system.

South Korea established its impressive mobile infrastructure early and Ericsson will make the most of it as it steps up its campaign against Intel's beleaguered WiMax system.

In an apparently single-handed effort to put an end to the recession, the firm chose to announce the deal in Sweden, having flown over South Korea's President Lee Myung-bak. The company also pledged to expand its workforce in South Korea, up from some 80 people to almost 1,000.

With Swedish Korean caterers, the airlines, wireless technologies, and South Korea itself given a cash infusion we started to wonder where the firm would splash out next. We didn't get to wonder too long as Ericsson announced that it will also work on its green manufacturing technologies in the country.

Lee Myung-Bak, President of Korea, said, "Ericsson could play a vital role for Korea's evolution in the ICT market and for Korean export companies. We are certain that by developments in the ICT area we will take needed steps to a more sustainable future. We expect to see more of Ericsson in the Korean business landscape."

Few countries welcome the increased presence of big industry to their shores while also talking about sustainable ecological futures. But we get the idea. µ