• Email Us: [email protected]
  • Contact Us: +1 718 874 1545
  • Skip to main content
  • Skip to primary sidebar

Medical Market Report

  • Home
  • All Reports
  • About Us
  • Contact Us

Exclusive-Ericsson CEO to double down on China as 5G tussle rumbles on

September 3, 2021 by David Barret Leave a Comment

September 3, 2021

By Supantha Mukherjee

STOCKHOLM (Reuters) – Ericsson’s top executive vowed to double down on efforts to regain market share lost in China after Sweden blocked Chinese suppliers from its 5G roll-out, a move that antagonised Beijing and has hit the equipment maker’s business.

China accounted for about 10% of Ericsson’s revenue last year, but that fell sharply after the company’s home country of Sweden banned https://ift.tt/2HC7jxv Huawei from its 5G networks, citing security risks – a charge that Huawei has strongly denied https://ift.tt/3BvmFKO.

Ericsson was awarded https://ift.tt/2VdumWx about 2% of China Mobile’s 5G contract, down from 11% last year, and got https://ift.tt/3DIzmns a 3% share in a joint 5G radio contract from China Telecom and China Unicom.

“We have been in China for 120 years and I don’t intend to give up easily,” Chief Executive Borje Ekholm said in an interview with Reuters. “We are going to show that we can add value to China.”

Ericsson had lobbied the Swedish government in favour of Huawei, warning https://ift.tt/2YpHCZp of possible retaliation by China, but the ban went through and has been upheld https://ift.tt/3ByB096 in court.

“I don’t believe we have had any help from the Swedish government to be honest,” Ekholm said.

Analysts have warned Ericsson, based in the Swedish tech hub Kista north of Stockholm, could https://ift.tt/3DDOwud lose a majority of its China business with contracts going to Nordic rival Nokia.

While Finland’s Nokia, which didn’t get any radio contracts in China last year, landed its first one in the second round of awards, Ericsson has been able to retain a slight edge so far.

“If we had lost out completely then it would have put us at a competitive disadvantage from a technology point of view,” Ekholm said.

China has been at the forefront of deploying 5G networks and accounts for more than half of the equipment used globally for the next generation network, making it a critical market for any telecom equipment maker.

Beyond the vast sales volumes, being a front runner means China provides a test bed for advanced 5G technologies which Ericsson and Nokia could tap into when deploying networks across the world.

Ericsson, a dominant supplier of gear in China for previous generations of telecom technology, had made bold steps to win contracts in the country, including taking a hit of 1.3 billion crowns ($152 million) due to writedowns of product inventory.

Writedowns are generally recouped as companies sell additional equipment and make up for the losses in the long run, but losing future contracts make the losses more significant.

“The interesting thing with bandwidth is that it is addictive. Once you have it, you want more. The large data consumption in China will be a driver of future technology needs,” Ekholm said.

“Now we need to make sure that we regain the volume elsewhere, as well as in China.”

($1 = 8.5737 Swedish crowns)

(Reporting by Supantha Mukherjee, European Technology & Telecoms Correspondent, based in Stockholm; Editing by Niklas Pollard and Mark Potter)

Source Link Exclusive-Ericsson CEO to double down on China as 5G tussle rumbles on

David Barret
David Barret

Related posts:

  1. Islamic State ‘Beatle’ to plead guilty to U.S. terrorism charges
  2. Asian shares hold gains, dollar weak ahead of major U.S. jobs data
  3. Vietnam’s biggest city proposes Sept 15 economic restart after lockdown
  4. Singapore Exchange’s SPAC rules seen giving market much-needed boost

Filed Under: News

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

  • 2024 Saw Higher Levels Of Carbon Dioxide In The Atmosphere Than Ever Before
  • Halloween Fireballs Will Grace Our Skies As The Taurid Meteor Showers Arrive
  • Newly Discovered Hunting Megastructures Suggest Pre-Bronze Age Societies More Sophisticated Than Previously Thought
  • What Is Spectroscopy And Why Is It So Important To Science?
  • Parkinson’s “Trigger” Seen For The First Time: Scientists Image The Toxic Molecules Inside The Human Brain
  • What Flying Animals Exist That Are Not Birds?
  • DNA Evidence Uncovers Surprising Origins Of Native Americans
  • Single Gene Swap “Transfers A Behavior” Between Two Species For The First Time
  • Interstellar Object 3I/ATLAS Has A Rare “Anti-Tail”, New Observations Confirm
  • Asteroid Apophis: Animation Shows Asteroid’s Nail-Biting Close Approach To Earth In 2029
  • Titan Breaks A Key Chemistry Rule: What That Means For Alien Life
  • Scientists Studied “Chicago Rat Hole” – They Have Bad News, The South Atlantic’s Magnetic Field Weak Spot Is Growing, And Much More This Week
  • Could This Be The Real Reason Humans Survived And Neanderthals Died Out?
  • Newly Discovered Snail Species Named After Studio Ghibli Co-Founder Is A Hairy Beauty
  • 2025 SC79 Is The Second-Fastest Asteroid Ever Found – And Only The Second Within Venus’ Orbit
  • When Red Devil Spiders Arrived On A New Island, Their Genome Dramatically Shrank In Half
  • Is This The World’s Oldest Story? Ancient Human Tale About The Seven Sisters May Be From 100,000 BCE
  • This Pill Is Actually A Tiny Printer That Repairs Internal Injuries Using Biocompatible Ink
  • “This Is Amazing”: Scientists Have Found Evidence Of A Long-Lost World Deep Within The Earth
  • From The Shiniest World To Lava And Eternal Darkness, These Are The Weirdest Known Planets
  • Business
  • Health
  • News
  • Science
  • Technology
  • +1 718 874 1545
  • +91 78878 22626
  • [email protected]
Office Address
Prudour Pvt. Ltd. 420 Lexington Avenue Suite 300 New York City, NY 10170.

Powered by Prudour Network

Copyrights © 2025 · Medical Market Report. All Rights Reserved.

Go to mobile version