Jan Frykhammar says company has responsibility to shareholders to identify assets that 'can add value' to company.

Ericsson CFO Jan Frykhammar revealed to Total Telecom this week that the company would consider acquiring assets from rival Nokia Siemens Networks – provided they were up for sale.

"If they put out assets for sale and there comes official processes, I think our responsibility... is – if we are invited to have a look – [to] look at them," he said on the sidelines of Ericsson's fourth quarter results presentation on Wednesday.

"If we see that an asset can add value to our company we consider acquiring it," he continued, citing recent examples including Ericsson's $1.15 billion purchase of Telcordia in June 2011 and its participation in the consortium that bought Nortel's patent portfolio a month later for $4.5 billion.

A GigaOM report on Wednesday also linked the Swedish kit vendor with a move for Canadian WiFi specialist BelAir networks.

However, Frykhammar insisted Ericsson is not specifically planning to buy parts of NSN.

"As a leadership team we do not speculate on consolidation," he said. "If assets are available we look at them; whether we go and acquire assets, that's completely different."

Nokia Siemens Networks in November announced plans to refocus the business entirely on mobile broadband and divest or manage for value any assets that fall outside that remit. The move will see 17,000 jobs cut in a bid to reduce costs by €1 billion.

So far NSN has offloaded its WiMAX business to Skyview Capital-owned NewNet Communication Technologies, and its fixed broadband access division to network specialist Adtran for undisclosed fees.

By Nick Wood, Total Telecom
Thursday 26 January 2012