Handsome handout for Ericsson venture

By PETER GRIFFIN

Wellington-based Ericsson Synergy, a joint venture between Swedish mobile phone giant Ericsson and local software developer Synergy, becomes the first beneficiary of a $3 million Government investment fund for high-growth projects.

But there are strings to the $1.6 million injection - $750,000 of which comes from the fund and $850,000 from Foundation for Research, Science and Technology schemes. Employment targets must be reached over the next three years as the company moves towards its goal of a highly skilled workforce of 150.

Another mobile player, Motorola, last year showed interest in establishing an operation in New Zealand but decided on Perth because the West Australian Government offered a $6.7 million incentive package.

Now employing 32 people, Ericsson Synergy is "merging the internet with mobile networks", developing applications that allow Wap-enabled phone users (wireless application protocol) to make purchases and download information.

Locally, its applications include the interactive portal www.e-zebra.co.nz, a service developed with Vodafone and ASB Fast Alert which allows mobile phone users to obtain stock quotes.

The company has applications in the pipeline for the new GPRS and CDMA networks and has an eye to the future, working on third-generation (3G) applications in anticipation of the high-speed network's arrival.

Chief executive Stephen Crombie said the company's staff included several New Zealanders who had been lured home.

"It's a combination of New Zealanders coming back, foreigners interested in the company and new graduates," he said.

To date, 50 per cent of sales come from overseas, and the Ericsson connection gives the venture access to markets in 140 countries.

But the Government's generosity, driven by ministers Pete Hodgson, Jim Anderton and Paul Swain, did not go down well with everyone. Act party finance spokesman Rodney Hide labelled the payout "little more than a bribe".

"Mr Anderton has provided every multinational and large company with the message: put your hand out, and we'll put you on welfare, along with the rest of the country," he said.

Links

Ericsson

Synergy

e-zebra