Faced with the need to conserve cash for research and development and for expanding its worldwide business, L M Ericsson Telefon AB has won agreement for the Swedish Telecommunications Administration to take some of the burden back home. The agreement covers development and marketing of telecommunications kit in Sweden and involves the Telecommunications Administration Group acquiring Ericsson’s Swedish sales company Ericsson Sverige AB, at the end of the year: all the unit’s 800 employees are being offered jobs with the Telecommunications Administration. Ericsson is already in a 50-50 joint venture with the Telecommunications Administration in the Ellemtel development company. As part of the agreement, the Telecommunications Group gets exclusive rights to market jointly developed products in Sweden.
