The first squall is the margin pressure that accompanies the strategic contracts. On a reported basis, network sales were up 14% for the first nine months of 2019, to SEK110.6 billion ($11.4 billion), compared with the year-earlier period.īut there are choppy waters ahead. Ericsson this week raised its sales guidance for 2020 to between 230 and 240 billion Swedish kronor ($23.8 to $24.8 billion), having originally forecast SEK210 to 220 billion ($21.7 to $22.8 billion), due partly to brighter 5G prospects than it previously envisaged. Earlier this year, Vodafone CEO Nick Read put Ericsson's share of the mobile infrastructure market at 27%, with Huawei on 28% and Nokia holding 23%. Our estimates suggest Ericsson's RAN revenue share gains in the North America region have been more pronounced, with a nearly six percentage point gain for Ericsson when comparing the first half of 20."Ī 1% annual increase may sound small, but sustained growth at that rate could swiftly tilt the balance in Ericsson's favor as 5G takes off. "We estimate Ericsson's RAN share is up about 1.2% between 20," said Stefan Pongratz of Dell'Oro Group, in comments emailed to Light Reading. The boast is credible, according to one respected analyst. Nokia, the other member of the "big three," has provided no firm evidence of recent "swaps" where it has come out on top.įredrik Jejdling, the head of Ericsson's networks business, claims Ericsson's share of the mobile infrastructure market is now growing about 1% annually. Still the world's biggest supplier, Huawei is in defensive mode while US authorities urge Western allies to ban it as a potential threat to national security. Besides the deals already mentioned, Ericsson is also replacing Nokia in Vodafone's UK mobile network and Huawei in TDC's Danish one. Ericsson's commitment to support a nationwide 5G rollout by 2023 - a more aggressive timetable than most other European telcos are considering - helped to snag the contract. In recent months, it bid competitively to secure another deal at Huawei's expense with Telia Norway. Last year, when it landed another deal to replace Huawei in some parts of Telefónica's Argentinean network, it offered lower prices than its competitors, Light Reading has learned.
In late 2017, it replaced Nokia in Deutsche Telekom's German mobile network at least partly because its technology was deemed superior.įavorable contract arrangements also lured customers. Its product upgrades were well timed, coinciding with a new cycle of spending by some operators. Selling non-core assets and boosting research-and-development (R&D) spending allowed it to concentrate on mobile infrastructure, and particularly 5G - a hyped and emerging network technology. That opportunity arose partly because Ericsson had managed to restore some of its own reputation for technological brilliance in the short Ekholm era.
Ericsson CEO Börje Ekholm has swapped a helmet and longsword for a microphone and written notes as he plots the latest Viking invasion.
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