Financial difficulties at Nortel Networks Corp. and Motorola Inc. have helped Ericsson boost its market share in all regions, Svanberg said in an interview in New York yesterday.

Ericsson, which hasnt reported a loss since 2003, has been unaffected by the recession because carriers are maintaining spending on new equipment, Svanberg said. Nortel, which filed for bankruptcy protection in January, posted a wider fourth-quarter loss this week. Motorola lost $3.6 billion in the period.

“We havent seen anything in our figures yet, as of Q4,” said Svanberg, 56. “Weve been growing market share.”

Ericsson, based in Stockholm, increased revenue 23 percent in the latest quarter, contrasting with falling sales at Nortel and Motorola. Chinas Huawei Technologies Co. has also gained market share, Svanberg said.

Ericsson fell 1.80 kronor to 69.6 kronor in Stockholm trading yesterday. The stock, which lost 23 percent in 2008, has advanced 18 percent this year.

Last month, Ericsson and Alcatel-Lucent SA won a contract to build a high-speed network for Verizon Wireless, the top U.S. wireless carrier. More U.S. companies, including AT&T Inc., will award similar orders, Svanberg said. Theyre opting for a technology standard called LTE, or Long-Term Evolution, to boost their networks data capabilities.

Job Cutbacks

While some customers are maintaining spending on equipment, Ericsson is getting ready for a slowdown, Svanberg said.

Ericsson announced plans in January to eliminate 5,000 jobs to prepare for customers spending cuts. The move will save about 10 billion kronor ($1.1 billion) by the second half of 2010. The company also reduced its dividend to 1.85 kronor for 2008, from 2.5 kronor a year earlier.

“We are preparing for tougher times,” Svanberg said. Still, “our sector is probably going to be affected less than many other parts of society.”

Svanberg had said as late as November that sales in 2009 would likely be “flattish,” an outlook he has since declined to reiterate. Last year, Ericsson announced 4,000 job cuts, adding to 2,000 reductions at its Sony Ericsson Mobile Communications Ltd. mobile-phone joint venture.

Svanberg, chairman of the joint venture, said Ericsson is committed to the business and wont change its stance based on the divisions performance over a single quarter.

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