* Sees mobile data traffic doubling each year until 2018
* Sees 6.6 bln mobile subscriptions by end-2012
* Smartphone subscriptions to hit 3.3 bln in 2018
STOCKHOLM, Nov 21 Telecom equipment maker
Ericsson said it expected mobile data traffic to
double every year until 2018, driving new investment in
Sweden's Ericsson, which reckons more than 40 percent of the
world's mobile traffic passes through its networks, said a surge
in smartphone and tablet computer sales has driven a switch in
traffic in telecoms networks from mainly voice calls to mostly
video and music which take up more capacity.
By the end of this year, there will be around 6.6 billion
mobile subscriptions, just shy of one for every person on the
planet, Ericsson said in a twice-yearly report.
Subscriptions for data-heavy devices like PCs and
smartphones are set to roughly double to around 4 billion by
2018, with smartphone subscriptions alone rising to 3.3 billion
from 1.1 billion estimated at the end of this year.
Although data traffic has been surging, clogging up
networks, operators continue to find it hard to get customers to
pay much extra, squeezing their profits and those of their
suppliers just as the global downturn bites.
This has hurt equipment suppliers, already struggling with
cut-throat competition and commoditization of network products.
Ericsson has said sales at its networks unit fell 17 percent
in the third quarter. It plans to cut around 1,550 staff to
bring down costs, and rivals are doing no better.
French-American Alcatel-Lucent posted a second
straight quarterly loss in the July-to-September period while
China's ZTE Corp recently slumped to its first
quarterly net loss since listing in Hong Kong in 2004.
Nokia Siemens Networks is slashing a quarter of
its staff to find 1 billion euros ($1.28 billion) in cost
savings by the end of next year.
However, bulls in the equipment industry argue that growing
smartphone and tablet sales will force operators to invest in
new 4G networks which have higher speeds and more capacity.
Ericsson said it expected rapid growth in 4G networks - what
it calls Long Term Evolution (LTE) - which can cope with the
increase in data traffic.
($1 = 0.7811 euros)
(Reporting by Simon Johnson; Editing by Louise Heavens)