Industry News
Chinese President Attends Signing Ceremony for $1 Billion Deal Between Ericsson and China Mobile
Representatives of Ericsson signed a GSM expansion framework agreement with China Mobile, valued at about US$1 billion, at a ceremony in Sweden attended by Chinese President Hu Jintao.
The Chinese President is in Sweden on a state visit at the invitation of King Carl XVI Gustaf of Sweden - the first visit by a Chinese president to Sweden since the two countries established diplomatic relations in 1950.
President Hu Jintao was joined at the signing ceremony by Swedish Prime Minister Fredrik Reinfeldt. Wang Jianzhou, Chief Executive of China Mobile Communications Corporation, and Carl-Henric Svanberg, President and CEO of Ericsson, joined the two leaders at the ceremony.
Ericsson's commitment to operations in China is reflected by its continuous increase in local sourcing, up to USD 2.5 billion in 2006, and growing export opportunities, with USD 1.6 billion in exports last year.
Under the new framework agreement, Ericsson will supply core and radio network equipment, along with related technical support and services, to expand China Mobile's GSM coverage in 19 regions of China.
The expansion project, which strengthens Ericsson's position as the leading mobile communications supplier in the Chinese market, will allow China Mobile to boost network capacity and performance, creating new revenue streams from enriched data services and offering an enhanced user experience to hundreds of millions of its subscribers.
Deliveries have already started.
A second major signing ceremony, between Sony Ericsson (the 50-50 joint venture between Sony and Ericsson) and China Postel Mobile Communications Equipment (China Postel), a subsidiary of China National Postal and Telecommunications Appliances Corporation (PTAC), also took place today.
Tan Xinghui, President of PTAC and Chairman of China Postel, Carl-Henric Svanberg, in his capacity as Chairman of the Board of Sony Ericsson, and Gunilla Nordstrom, President of Sony Ericsson China, witnessed the agreement for USD 600 million of mobile phone purchasing.
Sony Ericsson also recently announced a Memorandum of Understanding with Shenzhen Telling Communications Corporation for mobile phone purchasing valued at more than $500 million.
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IBM to Acquire Telelogic to Advance Global Software Delivery Strategy
Representatives of IBM announced a cash tender offer for all outstanding shares of Telelogic AB.The offer price is 21 Swedish Kronor per share, for an aggregate purchase price of approximately 5.2 billion Swedish Kronor (or $745 million).
Telelogic is a leading provider of software development solutions, with more than 8,000 customers worldwide, primarily in the aerospace and defense, telecommunications and automotive industries. Headquartered in Malmö, Sweden, with U.S. headquarters in Irvine, California, Telelogic has more than 1,100 employees and operations in 22 countries worldwide. In 2006, Telelogic reported revenues of approximately $208M, including approximately $89M in license revenue and representing year-to-year growth of 20% overall.
Telelogic products help organizations define, model, build, test, deliver and govern the development of software used in complex systems such as aircraft radar or a car's anti-lock braking system. Together, IBM, Telelogic, and business partners, will accelerate a customer's ability to develop high-quality complex systems. Clients will benefit from the combined technologies and services of both companies, providing them a wider range of software and system development capabilities used to build complex systems.
For example, a consumer electronics company could use IBM and Telelogic technologies to help design the software in an intelligent home network that controls the entertainment devices, security systems, appliances, and lighting. An automotive manufacturer would use IBM and Telelogic solutions to help build and deliver software that runs the navigation systems in vehicles.
"From today's next generation entertainment devices to tomorrow's space-information systems, software is the lifeblood of complex systems," said Dr. Danny Sabbah, general manager, IBM Rational Software. "IBM's acquisition of Telelogic will complement our entire portfolio to help our clients drive efficient and effective software development processes that are vital to product delivery."
IBM will acquire the outstanding shares of Telelogic AB after IBM obtains acceptance from more than 90% of the stock ownership in Telelogic, after receipt of all necessary regulatory, governmental or similar clearances, approvals and decisions, in each case on terms which in IBM's opinion are acceptable, and after the offer has been declared unconditional. Upon acquisition close, Telelogic will become part of the Rational Software division of IBM, reporting to Dr. Danny Sabbah, general manager of IBM Rational Software.
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Bath Iron Works Awarded $197 Million for Work on DDG 1000 ZUMWALT Class Destroyers
The U.S. Navy has awarded Bath Iron Works, a subsidiary of General Dynamics, a $197 million contract modification to continue work on the new DDG 1000 Zumwalt Class of destroyers. Work to be performed includes long lead material procurement and pre-production planning to support detail design and ship construction. The contract being modified was originally awarded in August 2006.
The Zumwalt class of ships represents the Navy's next generation of multi-mission surface combatants which will provide a broad range of capabilities that are vital both to supporting the Global War on Terror and to fighting and winning major combatant operations.
Bath Iron Works, a leader in surface combatant design and construction, employs approximately 5,800 people. Its current program for the Navy is the highly successful series of Arleigh Burke-class AEGIS guided-missile destroyers, for which it is lead designer and builder. BIW has delivered 28 ships of this class, and six more are in various stages of construction at the Maine shipyard.
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Intel and Google Join with Dell, EDS, EPA, HP, IBM, Lenovo, Microsoft, PG&E, World Wildlife Fund and Others to Launch Climate Savers Computing Initiative
Intel Corporation and Google joined with Dell, EDS, the Environmental Protection Agency, HP, IBM, Lenovo, Microsoft*, Pacific Gas and Electric, World Wildlife Fund, and more than a dozen additional organizations announcing their intent to form the Climate Savers Computing Initiative. The goal of the new broad-based environmental effort is to save energy and reduce greenhouse gas emissions by setting aggressive new targets for energy-efficient computers and components, and promoting the adoption of energy-efficient computers and power management tools worldwide.
Initial companies who intend to participate in the initiative represent both the demand and supply side of the computer industry, including computer manufacturers and chip makers, as well as environmental groups, energy companies, retailers, government agencies and more. The group will formalize its membership in coming weeks.
"By 2010, the Climate Savers Computing Initiative will cut greenhouse gas emissions in an amount equal to removing more than 11 million cars from the road or shutting down 20 500-megawatt coal-fired power plants -- a significant step in reducing the emissions affecting our planet," said Pat Gelsinger, senior vice president and general manager of Intel's Digital Enterprise Group.
Computer and computer component manufacturers who support the initiative are committed to building energy-efficient products that meet or surpass the EPA's Energy Star guidelines. Businesses must also commit to requiring high efficiency systems for the majority of their corporate desktop PCs and volume server purchases, and to deploy and use power management tools on desktop PCs.
Individual consumers can also support the Climate Savers Computing Initiative by signing up at www.climatesaverscomputing.org, where they will be able to pledge to purchase an initiative-certified system. The Web site will also help consumers learn how to take advantage of their existing computer's power-saving capabilities such as sleep and hibernate modes, which can reduce the amount of energy consumed by up to 60 percent.
The Climate Savers Computing Initiative licensed its name from the World Wildlife Fund Climate Savers program, which involves several leading companies working to reduce their carbon footprint.
The initiative's energy efficiency benchmarks will initially follow the EPA's Energy Star guidelines; but with increasing requirements during the next several years. For example, 2007 Energy Star specifications require that PC power supplies meet at least 80 percent minimum efficiency. The initiative would require a minimum of 90 percent by 2010. In addition, the initiative sets a higher efficiency target in the power supply for volume servers (1U and 2U single-socket and dual-socket systems): an increase from 85 percent to 92 percent efficiency by 2010. For a complete description of the requirements, see www.climatesaverscomputing.org.
