Stockholm-based world's largest wireless networks maker, Ericsson AB has promoted Chief Financial Officer Hans Vestberg to replace Chief Executive Officer Carl-Henric Svanberg.

BP informed that Henric Svanberg, who is Ericsson's chief executive and also chairman of Sony Ericsson and a non-executive director of Melker Schörling AB, would join energy giant BP Plc. as chairman.

57 year old Henric Svanberg will move from Sweden to London to hold his new responsibility.

Speaking on the topic, Henric Svanberg said, "It's a great privilege to be invited to lead its board. Following such a distinguished predecessor is quite a challenge but I'm hugely excited about joining the energy industry which is so much at the heart of the global economy. I look forward to it with relish."

On the other hand, Vestberg, who joined Ericsson straight in 1991, has wide international experience as he worked for Ericsson's divisions from China to Mexico, will take over on January 1.

According to Per Lindberg, a London-based analyst at MF Global Securities Ltd, the challenges to be faced by Vestberg includes enhancing the company's position in mobile broadband, expanding managed services, developing Ericsson into a major player in multimedia applications, and, the last but not the least, restoring the profitability of its handset-related entities.

It is worth mentioning here that the company is abolishing about 5,000 jobs this year at a cost of 6 billion kronor to 7 billion kronor.

In the recent trading Ericsson shares fell 0.9 percent to 76 kronor in Stockholm, giving the company a market value of $31.1 billion.