Petroc Taylor
Research expert covering global developments in the use of data
Ericsson - statistics & facts
As 5G adoption powers ahead, the world’s major telecommunications infrastructure firms are vying to secure landmark mobile infrastructure contracts. Stockholm-based Ericsson is one such company, with a long history of innovation in wireless technology. Ericsson was a key player in the development of mobile communications systems through the latter half of the twentieth century and pioneered key wireless technologies such as Bluetooth. The company was once active in the consumer hardware sector, having begun producing mobile handsets in the 1980s, and later pursuing a joint venture with Sony under the Sony Ericsson brand. Since exiting this joint venture, Ericsson has focused primarily on mobile infrastructure, with opportunities in the 5G space now driving the company’s global business strategy.
Ericsson’s future survival will no doubt rely on continued success in securing major infrastructure contracts, with its mounting research and development spending underlining its efforts to remain a leader in innovation. At the same time, the company has stated its intent to drive cost efficiency in the face of persistent macroeconomic challenges, thus requiring it to strike a delicate balance in the years to come.
Ericsson looks to Open RAN
Ericsson experienced fluctuating sales in the decade up to 2023, with the firm citing rising interest rates and shifting demand as notable hurdles. The firm’s Networks segment has long been its largest, accounting for almost two-thirds of total net sales in 2023. The segment comprises the provision of Radio Access Network (RAN) hardware and services, with a particular focus on Open RAN – a major trend in wireless infrastructure. Open RAN represents a new approach to the construction and maintenance of mobile networks in which operators are not tied to equipment provided by a single manufacturer. In 2023, Ericsson secured a major RAN contract with U.S. network operator AT&T, beating Nordic rival Nokia.Ericsson seeks to cut costs amid intense competition
Ericsson’s decision to focus on mobile infrastructure has brought it into direct competition with some of the tech industry’s most valuable players. The company was the fifth largest infrastructure firm by brand value in 2024, behind Huawei, Cisco, Nokia, and Qualcomm. Huawei has maintained the top spot for several years, finding continued success in both the consumer hardware and infrastructure sectors despite sanctions in major Western markets. Nokia, meanwhile, has completed a business transition mirroring that of Ericsson, having exited the mobile handset market.Ericsson’s future survival will no doubt rely on continued success in securing major infrastructure contracts, with its mounting research and development spending underlining its efforts to remain a leader in innovation. At the same time, the company has stated its intent to drive cost efficiency in the face of persistent macroeconomic challenges, thus requiring it to strike a delicate balance in the years to come.
