The market is entering a cyclical downturn as net additions slow. Net adds are a key indicator of growth in the mobile infrastructure market. 2006 outlook looks challenging.

The cash flow was 1 billion better that my forecast that proves the company is not going bankrupt,

These are clearly great results, but in being so they make growth in 2006 all the more difficult to achieve. As a result we continue to believe that Ericsson is overvalued and reiterate our 'sell' recommendation.

For the next two quarters or so, the company to pay particular attention to is Nokia, ... The main reason for that is with the continuing decline in the infrastructure market, Nokia will continue to post profits simply because it has a fairly large operating margin it can rely on.

If Nokia has problems, it has always been in the first quarter, and then it recovers toward the end of the year. If the first quarter is good, it's a good omen for the rest of the year.

Once again, the stellar performance of mobile phones has been marred by difficulties at Nokia networks.

The turnaround, in terms of stopping the rot, has worked,

Nokia is clearly very confident, leading us to believe that the risk of poor first-quarter results has diminished significantly.

It's definitely not out of the woods yet in terms of mobile infrastructure, ... However, we are relatively optimistic overall for 2002. We are expecting an overall 7 percent growth in the infrastructure market, which means that perhaps sometime in quarter 1 or 2 that Ericsson will be in a position to outperform forecasts simply because it has the greatest exposure and is the world leader in its field.

Big is beautiful in this industry. The widest geographic and product spread in the industry means that the combined entity will be present in almost every operator and will have the most comprehensive offering.