Ericsson said it restructured its business to focus on three key areas: networks, global services and multimedia. The revamp includes the addition of 500 engineers to speed up research into next-gen IP-based networks and multimedia technology. UBS Investment Research noted that Ericsson's multimedia unit will concentrate on opportunities related to digital content and relationships with content providers. Ericsson named Jan Wäreby, currently corporate executive vice president and head of sales and marketing at Sony Ericsson, as senior vice president and head of the new multimedia unit.
It appears all infrastructure vendors are beginning to put some significant money toward this area. Last week, Lucent Technologies announced an agreement to buy content provider Mobilitec for an undisclosed cash sum.