Ericsson to stop making modems

STOCKHOLM, Sept 18 (AFP): Swedish telecom equipment company Ericsson said on Thursday that it would stop developing modems, a decision affecting almost 1,600 employees worldwide which is expected to lead to hundreds of job cuts.
The group said in a statement that it would "discontinue future development of modems" but that some of the 1,582 employees affected could be redeployed to new jobs in research and development for radio networks.
The decision marks a strategic shift for Ericsson, following an evaluation of the global modem market which the company said was subject to "strong competition, price erosion and an accelerating pace of technology innovation".