September 23, 2020

Ericsson is positioned as a European option in the 5G race


Berlin

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“Nobody beats us in 5G networks, not even Huawei.” That’s how blunt it was Börje Ekholm in his speech this week at the Davos Forum. The CEO of the Swedish telecommunications multinational Ericsson seeks to position your company as an alternative to the Chinese domain in the fifth generation internet.

Ekholm arrived in Switzerland after opening a new R&D center in Paris; installation number 19 joins those that the Swede already has in Finland, Sweden, Ireland, Germany, Poland, Hungary, Italy and Spain. Ericsson’s new facilities in Paris have as their initial mission the development of 5G software, as well as focusing on the security section, with the intention of promoting this next-generation mobile technology in the region: «We are aware of the economic and technological importance of the French market and the influence of this country in Europe. France’s rich technological ecosystem and key competences favor the establishment of 5G through a strong R&D presence in the country, ”he explained. Fredrik Jejdling, director of the area of ​​Networks of Ericsson.

The Swedish company founded in 1876 is one of the three leaders in the race for the deployment of 5G networks, in which they are Huawei and the Finnish Nokia. There are, however, two others very close behind this trio: the Chinese ZTE and the South Korean Samsung. However, Ericsson seeks to focus on the security section and thus give value to the European 5G: “This initiative will strengthen Ericsson’s 5G software portfolio, including improving security capabilities, especially for the French and French markets. European, ”commented Jejdling. The initial unit will be established in the offices that Ericsson has in Massy, ​​Paris-Saclay, and will have 300 employees who will focus primarily on security issues: “Security aspects will be critical in a 5G world,” Ekholm recalled. from Switzerland

Wind direction

The fact that there were no US companies in the 5G business – a problem for US President Donald Trump – and Huawei’s difficulties over the US blockade seem to give a unexpected advantage to the Nordic companies in the race for 5G. Something that until last year was denied from Stockholm. In October, Ekholm said the Trump-Huawei war is “wind against” for Ericsson, that the conflict does not generate a favorable impact on sales, that the geopolitical tensions surrounding Huawei create uncertainty in the market and that the idea of that “we are benefiting” is false.

But the obstacles to Huawei could be, after all, helping your company. In fact, this Friday the Swedish group presented annual results in which after two consecutive years of losses returned to profits: 171 million euros. Although somewhat below the expectations of analysts, the result contrasts with the losses of 598 million euros in 2018, motivated to a large extent by the reserve of an item of 1,062 million euros to cover an economic sanction of the State authorities United in a case of corruption.

“Our result in 2019 sets us on track to achieve our goals for 2020 and 2022. Our strategy focused on more investments in research and development combined with operational efficiency is paying off,” Ekholm said in the balance sheet, underlining that the firm already adds 78 5G trade agreements on four continents. Europe also takes positions in the race for technology that marks the future of telecommunications.

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