Question-and-Answer Session
Operator
(Operator Instructions)
Our first question today comes from Edward Snyder from Charter Equity Research. Please go ahead.
Edward Snyder - Charter Equity Research
Last conference call, you pushed out your expectations from Marconi merger being neutral to earnings in the second quarter of ’07. Is that currently your assumption, or has that changed since we last spoke?
Carl-Henric Svanberg
No, that has not changed.
Edward Snyder - Charter Equity Research
Okay.
Operator
Thank you. Our next question today from comes from Stuart Jeffrey from Lehman Brothers. Please go ahead.
Stuart Jeffrey - Lehman Brothers
Thank you. I had a question for Carl-Henric. You mentioned the business environment seems to have improved over the last few months. I was hoping you could go into a bit more detail as to whether that is operators looking to do more with in terms of putting out contracts, or if it is also tied into perhaps seeing less vendors or less pricing power, less pricing pressure in the market. Thank you.
Carl-Henric Svanberg
Primarily, I would say that the comment was more meant to describe that we are seeing somewhat more activities, somewhat more spending, somewhat more projects coming to the market without necessarily changing the outlook, as such.
It is slightly more than we have seen before. Also, when it comes to the price pressure, over the many years, and also through the years when I have been in here, we have always said that the price pressure and the price erosion is a normal part of our business life, because of smaller electronics and more higher -- more scale and so on. We have not really commented on it that it is accelerating.
We said in the last quarter that we felt a bit more pressure over the last quarter or two. I think we are right now back into business as usual. That does not mean that it has gone away. It is there, but it is where it has always been, I would say.
Stuart Jeffrey - Lehman Brothers
Thank you.
Operator
Thank you. Our next question today comes from Tim Long from Banc of America. Please go ahead.
Tim Long - Banc of America Securities
Thank you. If you could just comment on some of the developments that have been in the press in the emerging markets, particularly in Brazil with Vivo and what has gone on in India with some of the carriers with GSM potentially gaining some favor. If you could just give your views on that, and what potential opportunity that could represent for Ericsson over the next year or two, that would be great.
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