Ericsson gets call from Vodafone

WHERE were Logica and CMG? The tech groups supply the worldwide mobiles industry with the software that handles text messages. But when Vodafone looked for systems to handle next generation messaging - to include pictures, sound and even videos - it gave the contract to Sweden's Ericsson.

The deal may be worth £400m sales over a few years, and strengthens Ericsson's relationship with the mobiles giant.

Word is that Logica did not have its product fully ready when the bidding began last autumn. CMG did, but was turned down.

Logica fell 40p to 604p on Wednesday. This could endanger its vital relationship with Vodafone's Japanese operation JPhone, worth 16% of profits. It will not comment. CMG fell 15p to 234p.

Meanwhile, real-time video and audio were beamed over the wireless network of Vodafone's US venture Verizon using software from Israeli tech group Emblaze.