Ericsson, the world's largest telecom equipment manufacturer, has reported a 31% drop in fourth-quarter net profit, hit by a lower gross margin and restructuring costs, and said it would cut 5,000 jobs.

The European Commission on Thursday officially approved an Ericsson-STMicroelectronics joint venture to provide wireless platforms for handsets and semiconductors for mobile communications.

The European Commission Wednesday cleared Swedish mobile telecommunications company Ericsson (ERIC) and STMicroelectronics NV to jointly produce chipsets for mobile phones.

Nokia said Sony Ericsson, Ericsson, Panasonic and Siemens have accepted the offer, and it also expects Samsung Electronics to accept the offer.

An analyst cut his cellular handset forecast for LM Ericsson Telephone Co. Monday, saying global market growth will likely cool and the company may lose market share.