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Ericsson

Telefonaktiebolaget LM Ericsson, commonly known as Ericsson, is a multinational networking and telecommunications company headquartered in , founded in 1876 by as a mechanical repairing telegraph equipment. It has grown into a global leader in providing hardware, software, and services for communications technology, particularly mobile connectivity solutions for telecom operators and enterprises across various sectors. With approximately 90,000 employees worldwide as of 2025, Ericsson reported net sales of 247.9 billion for the full year 2024 and focuses on innovation in areas like , the (), and emerging technologies. The company holds over 60,000 granted patents and has signed more than 100 licensing agreements, underscoring its pivotal role in shaping modern telecommunications infrastructure. Ericsson's history is marked by pioneering advancements in and communications, beginning with the production of its first telephones and switchboards in the late . Key milestones include the development of the AXE digital switching system in 1976, the introduction of () networks across in 1991, and the launch of the world's first commercial network in 2010 in partnership with TeliaSonera. Despite challenges such as economic downturns and the 2001 merger of its division with , which fully acquired in 2012, allowing Ericsson to refocus on its core infrastructure technologies, the company has consistently adapted to drive global connectivity. Today, under President and CEO , Ericsson emphasizes sustainable and secure networks to enable the full value of connectivity for communications service providers and enterprises.

History

Foundation and early years

Lars Magnus Ericsson, a skilled mechanic born in Värmland, Sweden, established his electro-mechanical workshop in April 1876 in a modest rented kitchen at Drottninggatan 15 in central Stockholm. With limited capital of about 1,000 kronor borrowed from a local benefactor and equipped with a single pedal lathe, the venture initially focused on repairing telegraph equipment for the Swedish state telegraph administration and performing small mechanical jobs. This repair shop marked the origins of what would become a global telecommunications leader, capitalizing on the growing demand for reliable telegraphy tools in late 19th-century Sweden. By 1878, the workshop expanded into telephone production, delivering its first manufactured telephones in November after Ericsson studied and improved upon American Bell designs through repairs of imported units. These early models were magneto s, simple yet robust devices that addressed local needs for voice communication. In 1880, Ericsson introduced the first fully -designed —a unique wall-mounted model known as the " pattern"—which featured innovative and quickly gained traction in domestic markets. The company's growth during this period relied heavily on sales within , securing key contracts such as the 1881 installation of a 50-line telephone system in , where Ericsson's equipment outperformed competitors like Bell in simplicity and durability. A pivotal early achievement came in 1884 with the development of Sweden's first multi-position switchboard, installed in Stockholm's Old Town , which enabled more efficient manual call routing for expanding urban networks. By the mid-1890s, sustained domestic demand had transformed the workshop into a substantial operation, employing over 500 workers and producing more than 100,000 telephones annually, the majority for Swedish customers. This expansion culminated in 1896 with the formal incorporation of the business as Telefonaktiebolaget LM Ericsson, capitalized at one million kronor, with retaining majority ownership and leadership.

Expansion and technological innovations (1890s–1940s)

During the 1890s, Ericsson significantly expanded its international presence through exports, beginning with steady deliveries to in the early 1880s that continued to grow throughout the decade, alongside shipments to and recognition of opportunities in . In 1899, the company established its first foreign manufacturing facility in St. Petersburg, , to meet local production requirements imposed by the and Telegraph Administration, marking a shift from mere exports to localized operations. By 1900, this Russian plant had relocated to its own premises, employing around 165 workers and contributing to sales of 0.5 million in 1901, while Ericsson also began penetrating other European markets and even distant regions like , , , and the by the turn of the century. This expansion was formalized further with the creation of a Russian in 1905, wholly owned by the Swedish parent, and the establishment of a sales and installation subsidiary in in 1918 as AB L M Ericsson Finland. A pivotal technological advancement during this period was the development of crossbar switching technology, which began in the under engineers G A Betulander and Nils Palmgren at the independent firm Nya Autotelefon Betulander, with an initial patent application for -based selectors filed in 1912. acquired the firm in late 1919, integrating the technology and testing a refined crossbar design that minimized usage, leading to the first operational crossbar station without links in , , in 1926. This innovation revolutionized automatic telephone exchanges by enabling more efficient, scalable switching for larger networks, with over 1,000 such stations installed by Swedish Televerket over the subsequent two decades for small- and medium-sized facilities. Further refinements culminated in 1938, when advanced crossbar systems using links and markers entered service, influencing global adoption, including licensing agreements that aided in deploying the first U.S. crossbar exchanges that year. Shareholding in Ericsson underwent notable transformations in the early 1900s, reflecting the company's growing scale and external influences. In 1896, upon incorporation as a limited liability company, founder Lars Magnus Ericsson held all 1,000 shares valued at SEK 1 million, though he distributed 100 as employee bonuses. By the turn of the century, acquisition of AB Telefonfabriken from Stockholms Allmänna Telefonaktiebolag (SAT) involved share exchanges that diluted Ericsson family control and granted SAT significant influence. This culminated in the 1918 merger of Ericsson and SAT to form Allmänna Telefon AB Ericsson, where SAT contributed 56% of the SEK 51.5 million equity. Further shifts occurred in the 1920s, with Karl Fredric Wincrantz acquiring majority control in 1925, prompting a 1926 rename to Telefon AB LM Ericsson. The Wallenberg family's involvement began in earnest in 1932 following Ivar Kreuger's death, when their sphere through Stockholms Enskilda Bank secured about 7% of A-series shares as part of a stabilizing consortium alongside International Telephone & Telegraph (ITT) and Handelsbanken. The World Wars profoundly shaped Ericsson's operations, prompting a pivot to military communications amid disrupted civilian markets. During World War I, the company introduced cable-connected mobile telephones for battlefield use, enhancing tactical coordination. In World War II, exports plummeted to just 15% of invoicing by 1944 due to blockades, leading to a domestic focus where approximately 20% of production capacity supported Swedish defenses from 1939 to 1944. Ericsson shifted resources to manufacture field telephones, warship telephony equipment, army switches, and aircraft instruments, while also producing ammunition such as grenades in 1940 and up to 15 heavy machine guns daily by 1941, employing 400–500 workers in that division until 1943. The company supplied field telephones to Finland during the Winter War (1939–1940) and Continuation War (1941–1944), bolstering their resistance against Soviet forces for key periods like the 105-day Winter War defense, often without immediate payment due to strong ties with Finnish leadership. Military demands accelerated radio communication research, including electron tubes for long-distance telephony and radio systems, with Ericsson contributing to portable transmitters used by Norwegian resistance groups in operations like the 1944 sinking of the German battleship Tirpitz. Additionally, wartime production extended to radar equipment for the Swedish military, laying groundwork for post-war diversification.

Post-war growth and diversification (1950s–1980s)

Following , Ericsson focused on reconstructing its operations and modernizing telecommunications infrastructure across , where war-damaged networks required efficient upgrades. The company's crossbar switching technology, developed in but widely adopted post-war, became a cornerstone of this effort; by the , it enabled automated exchanges that replaced manual systems, supporting rapid network expansion and the world's first international direct-dialed call in using an Ericsson exchange. This technology facilitated the installation of thousands of exchanges, particularly in and other European countries, allowing Ericsson to regain and export capabilities amid economic recovery. In the , the , through their investment , consolidated control over Ericsson by acquiring the remaining shares held by , reaching approximately 24% ownership of A shares and establishing dominant influence. This shift provided stable funding for , enabling diversification beyond traditional into emerging fields like and systems. Under Wallenberg stewardship, Ericsson invested in silicon-based production starting in the early , transitioning from to leverage silicon's superior thermal properties and enabling the integration of transistors into more complex circuits essential for modern exchanges. These efforts positioned the to produce custom components for its switching systems and laid groundwork for ventures, including early data processing equipment. Ericsson's diversification extended to and throughout the and , with joint ventures and internal R&D yielding innovations like the AXE digital , first installed in 1977, which integrated advancements for programmable, scalable networks. By the , the expanded into office information systems and computers, acquiring a in Datasaab in 1980 to bolster its data systems portfolio despite later challenges in the sector. This period also saw growth in public sector contracts, exemplified by a landmark 1977 deal with for AXE systems, which modernized the kingdom's telecommunications and marked Ericsson's entry into large-scale international public infrastructure projects. A pivotal step in came in 1981, when Ericsson delivered the world's first operational cellular mobile system under the (NMT) standard to , inaugurating fully automatic mobile communications on a national scale and serving as a precursor to global cellular adoption. This project, leveraging AXE's digital architecture, demonstrated Ericsson's ability to adapt core technologies to wireless applications and secured further public sector engagements in emerging markets.

Mobile communications era (1990s–2000s)

During the 1990s, Ericsson emerged as a driving force in the global mobile communications revolution, particularly through its substantial contributions to the development of the (GSM) standard. As a key participant in the (ETSI), Ericsson helped shape the specifications for GSM, which became the dominant second-generation () mobile technology worldwide after its initial commercialization in 1991. The company's expertise in radio access and switching technologies enabled the rapid deployment of GSM networks across and beyond, with Ericsson supplying infrastructure for many of the earliest operators. By the end of the decade, this leadership translated into a commanding position in the market, where Ericsson held approximately 40% of the global share in mobile network infrastructure by 2000, outpacing competitors like and Alcatel. The convergence of with the marked a transformative phase for Ericsson in the late and early . Recognizing the potential for data services, the company pioneered advancements in packet-switched technologies, including the launch of (GPRS) as an extension to , which allowed for always-on mobile with speeds up to 114 kbps. Ericsson's supported the rollout of GPRS starting in 2000, enabling early applications like mobile email and web browsing for operators such as in . This innovation fueled explosive growth in mobile subscriptions, with users surpassing 500 million globally by 2000, and propelled Ericsson's to a peak of around 4,800 billion (approximately $450 billion) that year, underscoring the era's optimism around mobile data. To strengthen its consumer-facing operations amid intensifying competition in handsets, Ericsson entered a 50-50 with Sony in October 2001, forming Sony Ericsson Mobile Communications. The partnership combined Ericsson's prowess with Sony's expertise in and , aiming to produce innovative devices that integrated mobile connectivity with entertainment features. Initial products, such as the T68i phone with support, helped the venture capture a niche in the premium segment, though it represented a strategic shift from Ericsson's core infrastructure focus. The period's exuberance was short-lived, as the dot-com bust and overinvestment in third-generation (3G) spectrum auctions triggered a severe downturn in the telecom sector by 2001. Ericsson, heavily exposed to the mobile boom, faced plummeting demand for equipment and reported its first losses in decades, with revenues declining sharply from their peak. In response, the company undertook aggressive through , including the closure of manufacturing sites and divestitures, which resulted in approximately 35,000 layoffs as the workforce shrank from over 100,000 employees at the start of the decade. These measures, while painful, were essential to navigate the crisis and refocus on core competencies in mobile infrastructure.

Restructuring and recovery (2010s)

Following the 2008 global financial crisis, which severely impacted the sector with declining demand and inventory write-downs, Ericsson pursued recovery through strategic acquisitions and a sharpened focus on core mobile infrastructure. In July 2009, the company acquired 's North American wireless equipment business, including CDMA and assets, for $1.13 billion, bolstering its position in key markets and technologies amid 's proceedings. This move allowed Ericsson to retain approximately 2,500 employees and integrate complementary technologies, contributing to a rebound in sales that grew 10% in 2010 to 203.3 billion. Concurrently, Ericsson divested non-core assets, such as its 50% stake in the ST-Ericsson semiconductor to in 2013 for up to €405 million, to streamline operations and redirect resources toward high-growth areas like IP-based networks essential for evolution. Ericsson solidified its dominance in / during the early , leveraging its early investments to become a leading supplier. By the end of 2015, the company had supported the deployment of networks in nearly all countries worldwide, with its equipment powering a significant portion of the approximately 350 commercial networks live globally at that time. A key partnership was with , which selected Ericsson in 2009 as a primary vendor for its nationwide rollout, launching the first U.S. commercial service in December 2010 using Ericsson's base stations and core network solutions. This collaboration extended through the decade, enabling to cover over 110 million people with by 2011 and achieving milestones like LTE-Advanced deployments by 2015, where Ericsson provided (RAN) upgrades for enhanced capacity and speeds. Leadership transitioned in 2017 with assuming the role of president and CEO on January 16, succeeding amid ongoing profitability challenges from market saturation and . Ekholm initiated the "One Ericsson" restructuring program in March 2017, aimed at unifying operations, reducing complexity, and improving efficiency by focusing on core networks, digital services, and . This included significant cost-cutting measures, resulting in the reduction of nearly 15,000 positions globally in 2017 through layoffs, attrition, and divestitures, alongside 9 billion in annual savings targets. The overhaul also involved exploring sales of non-core units like media businesses and power modules, helping Ericsson return to operating profitability by late 2017 with an adjusted EBIT margin of 8%. As part of its forward-looking strategy, Ericsson engaged early in preparation through standardization efforts in the . In September 2015, launched its workshop in Ericsson-hosted sessions, marking the official start of next-generation wireless access development, where Ericsson contributed to defining requirements for enhanced , massive machine-type communications, and ultra-reliable low-latency applications. Building on its expertise, the company advocated for non-standalone integrations with existing cores in Release 15, positioning itself as a key architect for the technology's commercial viability by the late 2010s.

Recent developments (2020–present)

In the early 2020s, Ericsson accelerated its commercialization efforts, leading deployments across and . The company powered impressive nationwide 5G progress in the and , utilizing various spectrum bands, and accounted for over 50% of the 5G network equipment market share in the . In , Ericsson contributed to mid-band 5G coverage reaching 50% by the end of 2024, supporting projections for 93% 5G subscription penetration in by 2030. By 2025, Ericsson powered 42 of the world's more than 70 commercially live Standalone () networks, emphasizing its role in advanced core and solutions. To strengthen its position in and developer platforms, Ericsson acquired in 2022 for USD 6.2 billion, integrating it as a wholly owned to enable programmable APIs and expand into enterprise communications. The acquisition, completed in July 2022 after regulatory approvals, aimed to create a global platform for , though it later faced challenges including impairment charges. The prompted Ericsson to enhance solutions and , prioritizing employee safety and the critical role of connectivity during disruptions. Company revenues dipped to 227.0 billion in 2020 from 239.6 billion in 2019, reflecting pandemic impacts, but rebounded to 232.3 billion in 2021 amid recovery in key markets like and . In 2025, Ericsson reported 9% organic sales growth in its Cloud Software and Services segment for the third quarter, driven by strong performance in core networks across three of four market areas. The company was in advanced talks in July 2025 to acquire a minority stake in Intel's networking and infrastructure (NEX), potentially investing hundreds of millions to bolster development for applications. Additionally, on November 10, 2025, Ericsson announced that Senior Vice President and Head of Global Operations Moti Gyamlani would step down from his executive role effective January 2026, remaining with the company in a transitional capacity. Ericsson advanced its sustainability efforts with a commitment to net-zero across its value chain by 2040, ahead of the UN's 2050 target, focusing on reducing portfolio emissions by 50% by 2030. In 2025 reports, the company highlighted -driven initiatives for in , including dynamic and optimization of operations to minimize consumption in mobile and sites. These efforts integrated to support sustainable 6G development and broader through solutions.

Corporate structure

Governance and ownership

Ericsson's Board of Directors consists of 11 members elected annually by shareholders at the Annual General Meeting (AGM), in addition to three employee representatives and their deputies appointed by unions in accordance with Swedish law. The Board is responsible for the company's overall organization and administration, including strategy development, risk oversight, and ensuring ethical business practices. , affiliated with the Wallenberg sphere, serves on the Board, reflecting the ongoing influence of this major shareholder group. The company's governance framework adheres to the Swedish Corporate Governance Code, which operates on a "comply or explain" principle, promoting , , and independence among Board members. Ericsson emphasizes sustainability and through dedicated Board , including the Audit and Committee, which oversees ethical standards, efforts, and compliance with regulations, and the and Technology Committee, which addresses sustainability in technology deployment. These structures support the company's robust and program, aligned with UN Compact principles. Ericsson's ownership has evolved significantly since its founding in 1876 as a private mechanical workshop, transforming into a in 1896 and merging with Stockholms Allmänna Telefonbolag in 1918 to form Allmänna Telefonaktiebolaget L.M. Ericsson. The company went public with its listing on the Stock Exchange in 1901, marking the beginning of broader shareholder participation amid early international expansion. Ownership shifted through the 20th century, including majority control by in 1930 and later by International Telephone and Telegraph (ITT) until the 1960s, after which the Wallenberg sphere via emerged as a key . As of 2025, Ericsson's shares are divided into Class A shares (with one vote each) and Class B shares (with one-tenth vote each), resulting in a total of approximately 572.7 million votes across 3.37 billion shares. , part of the Wallenberg sphere, holds about 9.5% of the shares but controls roughly 25% of voting rights due to its concentration in Class A shares. The free float stands at approximately 88%, with significant institutional ownership from investors such as and . Shareholders exercise their rights primarily through the AGM, held annually in , where they vote on key matters including Board elections, dividends, and remuneration policies. To participate, shareholders must be registered in the share ledger by the record date and notify the company in advance; nominee-registered holders can request temporary entry into the register. is facilitated by appointing a representative or, where permitted by the Board, submitting votes by post prior to the meeting, ensuring broad accessibility for global investors.

Leadership and executive team

has served as President and Chief Executive Officer of Ericsson since January 16, 2017. With a background in and , Ekholm holds a in from and a from . Prior to joining Ericsson as CEO, he was President and CEO of from 2005 to 2015, followed by CEO of Patricia Industries, a division of , until 2017; he also served as a board member of Ericsson from 2006 to 2017. Under his leadership, Ericsson underwent a significant turnaround, including cost reductions and a strategic pivot toward technologies to refocus on core infrastructure amid competitive pressures in communications. Ekholm succeeded Hans Vestberg, who was CEO from 2009 to 2016 and focused on expanding Ericsson's global mobile broadband presence during the 4G era before stepping down amid challenges in profitability. Ericsson's Executive Team, comprising approximately 16 senior vice presidents and executive vice presidents, supports the CEO in managing day-to-day operations and overseeing key segments such as Business Area Networks, Business Area Enterprise Wireless Solutions, Market Areas, and Group Functions like Technology, Finance, and Operations. Notable members include Erik Ekudden as Chief Technology Officer, Lars Sandström as Chief Financial Officer, and Åsa Tamsons as Head of Business Area Enterprise Wireless Solutions and CEO of Cradlepoint. On November 11, 2025, Ericsson announced that Moti Gyamlani will step down from his role as Senior Vice President and Head of Group Function Global Operations early in 2026, following a transition period, with a successor to be announced as part of ongoing leadership transitions. Executive compensation at Ericsson is performance-based, consisting of fixed salary, short-term variable pay tied to annual targets, and long-term incentives such as the Long-Term Variable Compensation Program (LTV 2025), which includes equity awards for the Executive Team to align with creation. For 2024, Ekholm's total compensation was SEK 71.62 million, including base salary and bonuses. Regarding diversity, Ericsson targets 30% women representation across all employees, line managers, and top by 2030, with initiatives like inclusion training integrated into to foster broader human differences beyond .

Headquarters and organizational divisions

Ericsson's global headquarters is located in Kista, a technology district in Stockholm, Sweden, at Torshamnsgatan 21. The company maintains a presence in over 180 countries, with local offices supporting operations worldwide. As of the Q3 2025 interim report, Ericsson employs 89,898 people globally. In 2023, Ericsson restructured its organization into three primary business segments—Networks, Cloud Software and Services, and —alongside the Global Communications Platform, to streamline operations and focus on core solutions. In February 2025, the company consolidated its Market Areas into three regions: Market Area , Market Area and , and Market Area , , and . Additionally, in November 2025, Ericsson announced further simplification of its group structure by moving functions closer to the business. This shift emphasizes end-to-end portfolio delivery, with the Networks segment handling radio access and transport solutions, Cloud Software and Services focusing on software platforms and , and the Enterprise segment targeting solutions for business customers. The Global Communications Platform supports cross-segment functions such as rights licensing and global connectivity services. Key operational sites include major R&D hubs in , centered around the headquarters; in the United States, particularly for advanced technology development; and in , with a prominent facility in dedicated to ASIC design and telecom innovations. Manufacturing operations are concentrated in strategic locations such as , including the automated smart factory in for radio production, and , supporting regional assembly and supply chain needs. The 2025 workforce reflects a geographically diverse distribution, with approximately 44% of employees in , the , and (including 12,967 in ), 17% in the , 28% in South East Asia, , and , and 11% in . This breakdown underscores Ericsson's emphasis on European roots while expanding in high-growth regions like and the to align with global market demands.

Research and development

Key facilities and investments

Ericsson maintains an extensive global R&D infrastructure, operating centers in more than 20 countries, including key sites in , the (with 12 dedicated R&D hubs), , , and . These facilities support a of approximately 26,744 R&D employees as of December 31, 2024, focusing on advancing technologies. A flagship installation is the Ericsson Studio in , , which functions as an innovation hub and experiment workshop for prototyping and demonstrating emerging solutions in collaboration with customers and partners. The company commits significant resources to R&D, with expenditures reaching approximately 52 billion in 2024, representing about 21% of net sales. For the first nine months of 2025, R&D spending totaled 35.8 billion, with Q3 guidance indicating flat full-year spending planned at approximately 52 billion, or roughly 21% of projected annual sales based on year-to-date figures of 167.4 billion. This marks an increase from 39.7 billion in 2020, reflecting sustained investment amid evolving market demands. Ericsson fosters R&D through strategic partnerships with academic institutions and industry consortia. Notable collaborations include joint projects with the in , such as the development of testbeds and research initiatives in technologies. Additionally, as a founding and board member of the 5G Automotive Association (5GAA), Ericsson participates in global efforts to standardize and advance applications for automotive and mobility sectors. These alliances enhance by integrating academic expertise and cross-industry resources. As a result of these investments and collaborations, Ericsson holds over 60,000 granted patents worldwide as of 2025, with a strong emphasis on technologies, including the largest share of essential patents at 17.6% to 20.1%. This portfolio underscores the company's leadership in core infrastructure.

Major innovations and patents

Ericsson's early contributions to included patents on key components such as the carbon granule microphone developed in 1892, which improved transmission efficiency and competed with existing technologies. By the late , the company had secured numerous patents related to design and production, laying the foundation for its role in telecommunications infrastructure. In the , co-developed technology, a short-range standard aimed at replacing wired connections between devices like mobile phones and headsets. Engineers at 's facility, including and Sven Mattisson, created the initial specifications in 1994, leading to the formation of the in 1998 with partners like and . This innovation enabled hands-free communication and data transfer, becoming ubiquitous in . During the 2010s, Ericsson made significant contributions to the New Radio (NR) standard through leadership in working groups, submitting thousands of technical proposals that shaped the air interface and . The company's efforts focused on enabling higher data rates, lower , and massive connectivity, with Ericsson ranking among the top contributors to approved specifications alongside and . These inputs were instrumental in the Release 15 standard finalized in 2018, supporting diverse applications from enhanced mobile broadband to industrial IoT. Ericsson maintains patent leadership as a top filer at ETSI, declaring over 6,000 5G-related standard-essential patents (SEPs) by 2024 and holding one of the industry's strongest portfolios with more than 60,000 granted patents worldwide. In 2025, the company continued filing patents in for networks, focusing on optimization techniques for infrastructure to enhance analytics, automation, and capacity. Ericsson receives over 3,000 patent grants annually, reflecting sustained R&D investment exceeding 40 billion yearly. The commercial impact of Ericsson's patents is evident in licensing revenues, which exceeded 10 billion annually in recent years, driven by cross-license agreements with major device makers. For instance, renewals with in 2023 projected full-year IPR revenues at approximately 11 billion. As a holder of numerous SEPs, Ericsson has been central to disputes, including multijurisdictional litigation with settled in 2025 via a global cross-license, and prior cases with Apple and resolved through FRAND-compliant terms. These agreements underscore the value of Ericsson's in enforcing fair, reasonable, and non-discriminatory (FRAND) licensing. Ericsson's patent portfolio has evolved from 19th-century to modern advancements in , where the company holds hundreds of enabling distributed closer to end-users for low-latency applications. Notable examples include U.S. 10,379,842 for an platform handling industrial data flows, contributing to 5G-enabled services like autonomous systems. With 288 edge computing-related patents published by 2024, Ericsson ranks among the top global holders, supporting network efficiency and emerging use cases.

Focus areas in emerging technologies

Ericsson's research and development efforts in 5G-Advanced and emphasize the creation of AI-native networks, with ongoing trials in 2025 demonstrating autonomous optimization and integrated sensing and communication (ISAC) capabilities. These advancements build on standalone () architectures to enable real-time adaptability and new use cases such as enhanced public safety and industrial automation. According to the Ericsson Mobility Report November 2024, SA subscriptions are projected to reach 3.6 billion by the end of 2030, comprising nearly 60 percent of all subscriptions and driving ecosystem growth in differentiated connectivity services. In AI and automation, Ericsson prioritizes integration within radio access networks (RAN) to support and operational efficiency. AI-driven solutions, including models for and , enable proactive issue resolution and reduce downtime in network operations. Additionally, Ericsson is advancing quantum-safe encryption protocols to protect future networks against threats, with developments focused on standards. These efforts align with the push toward Autonomous Networks Level 4 and beyond, where agentic AI facilitates self-managing systems. For and , Ericsson's platforms, such as its private solutions, provide low-latency connectivity for enterprise applications, supporting scalable deployments in sectors like and . These offerings enable secure at the network edge, facilitating massive device integration and real-time analytics for use cases including smart factories and remote monitoring. In 2025, collaborations like those with integrate with edge AI systems to accelerate deployment and enhance . Sustainability technologies at Ericsson center on AI-optimized energy management in base stations, aiming to minimize environmental impact through dynamic resource orchestration and efficient hardware designs. These initiatives include AI applications that predict and adjust power usage in real time, contributing to broader goals of reducing operational expenditures and carbon footprints. Ericsson has committed to cutting total greenhouse gas emissions across its value chain by 50 percent by 2030, compared to a 2020 baseline, with AI playing a key role in achieving energy-efficient 5G and future networks.

Business operations

Core business segments

Ericsson's core business is divided into three primary segments: , Cloud Software and Services, and , which together drive the majority of its revenue as of 2025. The segment, encompassing radio access networks (RAN), networks, and core networks, remains the largest contributor, accounting for approximately 60% of the company's in 2025. This segment focuses on providing infrastructure for mobile and fixed , supporting global telecommunications operators in deploying and upgrading connectivity solutions. In the third quarter of 2025, sales were stable at 35.4 billion despite an overall market slowdown, with organic growth at -5% year-over-year, reflecting resilience amid moderating investments in key regions. The Cloud Software and Services segment represents about 20% of Ericsson's 2025 revenue share, emphasizing software solutions for core networks, operations support systems (), and business support systems (). This area has shown growth driven by increasing adoption of cloud-native architectures and services for telecom providers. Notably, in Q3 2025, the segment achieved a 9% year-over-year organic sales increase to SEK 15.3 billion, highlighting its role in enabling scalable, efficient amid the shift to standalone deployments. The Enterprise segment, including , contributes to revenue through offerings tailored for business customers, with a strong emphasis on private networks and of network operations. It focuses on delivering customized solutions for industries such as , healthcare, and , where reliable indoor coverage is critical. Ericsson holds leadership in enterprise according to GlobalData's 2025 report, particularly with its Radio Dot System for high-performance indoor . For example, in November 2025, the 10 World Trade Center office tower in deployed Ericsson's Radio Dot System to provide high-capacity indoor . Overall, Ericsson's total sales for 2025 are estimated at approximately 250 billion, with accounting for 40% of the revenue, underscoring the region's importance to the company's performance.

Products and services overview

Ericsson's products and services span telecommunications infrastructure, digital transformation tools, and enterprise solutions, primarily serving communication service providers (CSPs) and industries seeking advanced connectivity. The company's offerings are designed to support the evolution from 4G to 5G and beyond, emphasizing scalability, security, and efficiency in network deployment and operations. In network solutions, Ericsson provides a comprehensive 5G Radio Access Network (RAN) portfolio that includes purpose-built and cloud-native options, enabling high-performance connectivity for CSPs. Central to this is the Massive MIMO radio technology, which utilizes advanced antenna systems to deliver larger mid-band bandwidth, enhanced capacity, and energy-efficient 5G experiences through beamforming and multi-band utilization. For instance, the AIR 3246 radio supports 4G/LTE, 5G, and Massive MIMO in FDD bands to boost network capacity, while the AIR 3284 integrates triple-band capabilities in a single unit for global deployments. Additionally, Ericsson's broadcast services facilitate efficient media delivery, leveraging LTE Broadcast and 5G network slicing to enable high-quality live content distribution and remote broadcasting, reducing network load for popular events and supporting hybrid unicast-broadcast models for TV and video-on-demand. Digital services from Ericsson focus on cloud-native platforms that streamline and innovation for CSPs transitioning to and ecosystems. The Ericsson Charging System stands out as a modular, scalable, and open convergent online charging solution compliant with industry standards, enabling real-time charging, billing, and management across hybrid multi-cloud environments. It supports 5G-specific functions like the (CHF) for generating charging records and handling diverse service transactions. Complementing this, Ericsson's API exposure capabilities allow developers to access network functions through harmonized, developer-friendly via the Exposure Server, fostering partnerships and new streams by enabling premium services such as quality-of-service guarantees and integrations. Managed services encompass end-to-end network operations for over 200 operators worldwide, providing -driven optimization, maintenance, and cybersecurity to ensure resilient and efficient infrastructure. These services include proactive , with more than 200 applications for service continuity, and integrated cybersecurity measures to protect against threats in multi-technology environments. By handling operations from core deployment to edge services, Ericsson enables CSPs to focus on business growth while achieving energy savings, such as up to 34% through -powered solutions in real-world deployments. For enterprises, Ericsson offers tailored products like private 5G networks, which provide secure, high-speed 4G/5G connectivity to drive digital transformation in sectors such as manufacturing. These networks support low-latency automation, real-time data processing, and integration with industrial IoT (IIoT) platforms, enabling smart factories with features like connected workers, autonomous machinery, and enhanced safety through reliable wireless WAN solutions. In manufacturing specifically, private 5G facilitates Industry 4.0 initiatives by connecting sensors, robots, and AI applications for precise control and productivity gains.

Global supply chain and manufacturing

Ericsson operates numerous manufacturing facilities worldwide to support its production of , including components and base stations. Key sites include the 5G smart factory in , , which focuses on assembling 5G radio units and has been operational since 2020, celebrating its fifth anniversary in March 2025. In , Ericsson expanded antenna manufacturing capabilities in 2025, achieving 100% localization of passive antenna production for the local market by June. Additional facilities are located in , , , and , enabling modular and flexible production setups tailored to regional demands. Following disruptions in 2020, Ericsson has pursued diversification to reduce dependency for critical components, shifting production and sourcing to multiple regions including and . This involves broadening supplier bases and investing in local manufacturing, such as the $50 million upgrade to its U.S. facility in 2023–2024 to enhance domestic assembly capabilities. While partnerships with foundries like for custom chips support this effort, full relocation of component production remains gradual due to complex global dependencies. To manage risks from geopolitical tensions and trade policies, Ericsson employs strategies such as broad-based production across geographies and inventory buffers to mitigate potential disruptions. In 2025, the company anticipated moderate negative impacts from U.S. tariffs on imports, including a 10% global minimum on components, but emphasized through diversified to avoid severe supply interruptions. These measures address escalating trade wars and regional conflicts affecting global . Ericsson has integrated sustainability into its manufacturing operations, achieving 100% renewable energy usage in facilities like its Lewisville factory by 2023 through on-site and certified green electricity. This commitment extends to suppliers, with Ericsson setting science-based targets for 350 high-emission partners representing 90% of its supply chain emissions, encouraging them to adopt 1.5°C-aligned climate goals and renewable practices.

Acquisitions and divestitures

Notable acquisitions

Ericsson has pursued strategic acquisitions to bolster its position in telecommunications infrastructure, networking, and , often targeting technologies that enhance its core offerings in mobile networks and enterprise solutions. One of the earlier significant deals was the acquisition of Redback Networks in for approximately $2.1 billion, which strengthened Ericsson's capabilities in and edge equipment, enabling expanded service to mobile and fixed-line operators globally. In 2009, Ericsson acquired Nortel's CDMA and LTE wireless assets for $1.13 billion following Nortel's , securing a substantial portfolio of patents and North American market presence that accelerated its leadership in deployment. This move integrated Nortel's intellectual property into Ericsson's radio access network portfolio, contributing to its dominance in long-term evolution standards. A more recent landmark acquisition was in 2022 for $6.2 billion, aimed at expanding Ericsson's communications (CPaaS) offerings and integrating cloud-based with its infrastructure. The deal has driven synergies by combining Vonage's application programming interfaces with Ericsson's network APIs, fostering developer ecosystems for enterprise applications and projected near-term revenue growth through cross-selling to communication service providers. As of 2025, Ericsson is in advanced discussions to acquire a minority stake in Intel's networking and edge infrastructure business, known as NEX, for hundreds of millions of dollars, positioning the company to deepen its capabilities and integrate technologies for next-generation networks. This potential builds on Ericsson's of partnering with chipmakers to support distributed cloud architectures in and beyond.

Major divestitures and spin-offs

Throughout its history, Ericsson has strategically divested non-core assets to sharpen its focus on telecommunications , particularly mobile networks. One pivotal divestiture occurred in 2012 when Ericsson sold its 50% stake in the Ericsson to for €1.05 billion (approximately $1.4 billion at the time). This move ended a decade-long formed in 2001 amid challenges in the market during the early , allowing Ericsson to exit consumer devices and redirect resources toward network equipment. The transaction, completed in February 2012, provided capital that supported Ericsson's pivot to leadership. In , Ericsson contributed its Mobile Platforms division to form , a 50/50 with valued at around $1.4 billion in assets. This entity combined Ericsson's platform technology with ' wireless operations to develop semiconductors for mobile devices, but it faced market pressures and was dissolved in 2013, with Ericsson regaining control of key intellectual property. The arrangement enabled Ericsson to offload development costs during a period of industry consolidation while retaining focus on higher-margin network solutions. A significant enterprise-related divestiture took place in 2001, when Ericsson sold an 80% stake in its corporate communications products unit—encompassing enterprise telephony and related services—to Apax Partners for $480 million. This unit, employing 2,400 people across 18 countries, handled sales and services for systems. The partial sale was part of broader restructuring efforts to streamline operations and expand market reach through partnership, aligning with Ericsson's emphasis on core infrastructure amid financial strains from the dot-com bust. More recently, in August 2025, completed the sale of its U.S. subsidiary —a provider of number portability and data services—to for approximately $1 billion. The deal generated a one-time EBIT gain of 7.6 billion ($720 million), boosting third-quarter 2025 results. Acquired by in 2012 as part of its wind-down, had become non-core as prioritized and enterprise solutions. Proceeds from this and prior divestitures have been reinvested in infrastructure, including radio access networks and spectrum innovations, reinforcing 's position as a global leader in mobile connectivity.

Controversies

Corruption allegations

In the early 2010s, Ericsson faced significant allegations of bribery in , where a paid approximately $2.1 million to high-ranking officials between 2010 and 2014 to secure a €20.3 million contract with the state-owned for modernizing the country's mobile network infrastructure. These payments were concealed through a sham consulting agreement involving fake invoices, despite a due diligence report that failed to disclose the consultant's familial ties to a key official. The scandal formed part of broader (FCPA) violations investigated by U.S. authorities, culminating in a 2019 settlement where Ericsson agreed to pay a $520.65 million criminal penalty to the Department of Justice (DOJ) and approximately $539 million in disgorgement and prejudgment interest to the Securities and Exchange Commission (SEC), totaling over $1 billion. The 2019 resolution addressed FCPA anti-bribery and accounting violations across multiple countries, including and from 2010 to 2016, where Ericsson used third-party agents to make improper payments to influence contracts with state-owned entities. In 2023, following a DOJ determination that Ericsson breached its agreement by failing to fully disclose relevant information about these schemes, the company pleaded guilty to conspiracy charges and paid an additional $206.7 million criminal penalty. This breach resolution extended independent compliance monitoring by one year and imposed probation until mid-2024, emphasizing ongoing scrutiny of conduct in , , , , , and spanning 2000 to 2016. In response to these settlements, Ericsson implemented substantial internal reforms to its ethics and compliance program starting in 2019, including enhanced due diligence on third parties, improved internal controls, and mandatory training on anti-corruption policies. The program incorporated principles for trustworthy AI, adopting EU ethics guidelines and integrating AI design rules to ensure ethical use of intelligent technologies in operations, with dedicated training modules on AI ethics as part of broader compliance education. An independent monitor, appointed by the DOJ, reviewed and certified these enhancements as effective in March 2024, leading to the conclusion of the monitorship in June 2024. As of November 2025, Ericsson remains under ongoing self-monitoring with no new major allegations reported since the 2023 resolution, reflecting sustained commitment to for amid continued cooperation with U.S. authorities on historical matters. Ericsson has encountered several antitrust challenges, primarily related to competition in labor markets and standard-essential patent (SEP) licensing. In March 2024, Turkey's Competition Authority imposed fines totaling approximately 197 million (around €5.7 million at the time) on and seven other companies, including an Ericsson subsidiary, for engaging in a no-poach agreement between 2013 and 2023 that restricted employee mobility in the sector, constituting a under Turkish . In May 2025, Brazil's Administrative Council for Economic Defense (CADE) initiated an into Ericsson following appeals by and , alleging abuse of dominant position through aggressive SEP enforcement practices in the market. The company has also been involved in high-profile intellectual property disputes, particularly over patents essential to cellular standards. Ericsson and Apple resolved a long-standing suit in December 2015 through a multi-year global cross-license agreement covering cellular technologies, including 4G , which ended all ongoing litigation between the parties. A subsequent dispute over 5G SEPs erupted in 2020, leading to lawsuits in multiple jurisdictions; this was settled in December 2022 with another multi-year global license agreement that included cross-licensing of SEPs and other patents. Similarly, and Samsung ended a 2020-2021 royalty dispute in May 2021 via a multi-year global license covering cellular standards from 2G to , resolving all related litigation worldwide and affirming Ericsson's commitment to fair, reasonable, and non-discriminatory (FRAND) terms. In , Ericsson faced ongoing FRAND-related disputes over its SEPs. A multi-jurisdictional battle with culminated in an April cross-license , partially resolving licensing disagreements with financial impacts recognized starting in Q2 . Likewise, a U.S. International Trade Commission investigation into Ericsson's claims against for infringing -related patents was terminated in May following a . These cases highlight Ericsson's assertive approach to enforcing its extensive SEP portfolio, which includes over 30,000 patents declared essential to standards. Regulatory approvals for key transactions have presented hurdles for Ericsson. The $6.2 billion acquisition of Holdings in underwent scrutiny by the U.S. Committee on Foreign Investment in the United States (CFIUS), which reviewed implications due to Vonage's U.S.-based operations; clearance was granted in July , enabling the deal to close shortly thereafter. U.S.-China trade tensions have introduced additional regulatory challenges in 2025. Escalating tariffs on telecommunications equipment, including a proposed 10% global minimum and higher rates on Chinese imports, prompted Ericsson to warn in January 2025 that such measures could "significantly hurt" its business, particularly given its supply chain exposure; however, the company emphasized mitigation through diversified manufacturing in the U.S. and elsewhere, including a $50 million investment in its Texas facility. By October 2025, Ericsson reported no material tariff impact on quarterly results, attributing resilience to its broad-based production strategy. On data protection, Ericsson has maintained compliance with the European Union's (GDPR) since its 2018 implementation, leveraging binding corporate rules approved in 2016 and updated in 2022 to govern intra-group data transfers and processing. These measures, including standard contractual clauses for international transfers and adherence to adequacy decisions for non-EU countries, have enabled the company to avoid any GDPR fines, unlike numerous peers in the tech sector facing penalties for inadequate safeguards. Ericsson's proactive privacy-by-design approach in network solutions further supports its regulatory standing.

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