Ericsson is closing down its 3G mobile infrastructure business in the US, with the loss of around 250 jobs.
The company was hoping to capture infrastructure deals with US mobile network providers that use CDMA-based communications technology. However, the bulk of the deals have gone to Nortel Networks and Lucent.
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The San Diego operation will close before the end of the year, said Ericsson.
Ericsson will instead now concentrate on providing mobile infrastructure based on W-CDMA technology elsewhere in the world, including Europe and Asia. Ericsson is strong in this area, and competes with the likes of Nokia, Nortel and Lucent in the European market, which has never considered the use of CDMA-based infrastructure to deliver 3G services.
The Ericsson job losses in the US are on top of thousands more at Ericsson in other parts of its business, as part of an ongoing jobs cull to slash operating costs.