Ericsson

Ericsson
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Name	Ericsson
Founded	0 1876
Founder	Lars Magnus Ericsson
Hq location city	Stockholm
Hq location country	Sweden
Industry	Telecommunications equipment
Products	Mobile network infrastructure, service provider solutions, IoT platforms
Revenue	263.4 billion SEK (2023)
Num employees	99,952 (2023)

Ericsson. A Swedish multinational leader in telecommunications equipment and ICT services, pivotal in the development of global mobile telephony. Founded in the 19th century, it has been instrumental in shaping every generation of mobile network technology, from the early Nordic Mobile Telephone system to contemporary 5G deployments. The company provides infrastructure, software, and services to communications service providers and enterprises worldwide, maintaining a significant influence on technical standards and digital transformation.

History

The company was established in Stockholm in 1876 by Lars Magnus Ericsson, initially focusing on repairing telephones and telegraph equipment for firms like Televerket and the Bell Telephone Company. By the 1890s, it had become a major manufacturer, exporting switchboards and handsets across Europe and to countries like Mexico and New Zealand. A pivotal early partnership was formed with the International Bell Telephone Company, though it later evolved into intense competition. The 20th century saw its expansion into mobile communications, beginning with its role in the world's first fully automatic mobile telephone system, the MTA, launched in Sweden in 1956. Its joint venture with General Electric in the 1980s, later forming Ericsson-GE Mobile Communications, strengthened its position in the North American market. The late 1990s and early 2000s were marked by a strategic merger with the defense electronics arm of Bofors to create Ericsson Microwave Systems, and a tumultuous joint venture with Sony, forming Sony Ericsson, to manufacture mobile phones. Throughout the 2010s, it divested several non-core units, including its modem business to Intel, while solidifying its focus on network infrastructure under CEOs like Hans Vestberg and Börje Ekholm.

Products and services

Its core offerings are centered on radio access networks, cloud-native 5G core software, and managed services for network operations. The Ericsson Radio System portfolio provides a comprehensive suite for building 2G, 3G, 4G, and 5G networks, utilized by major operators like AT&T, Verizon, and Vodafone. In the software domain, its Ericsson Digital Services division delivers critical functions for monetization, network orchestration, and AI-driven analytics. For enterprises, it provides the Ericsson IoT Accelerator platform to connect and manage devices across industries. The company also offers extensive professional services, including network design, deployment, and optimization, often in partnership with firms like Microsoft and Amazon Web Services. Its legacy in fixed networks continues through solutions for fiber and copper-based broadband access.

Corporate affairs

Headquartered in Kista, within the Stockholm urban area, it operates across more than 180 countries, with major research and development centers in Sweden, Canada, China, and India. The company is publicly traded on the NASDAQ Stockholm exchange and the NASDAQ in New York City. Its governance and significant ownership have historically involved prominent Swedish institutions like Investor AB, controlled by the Wallenberg family. The company has faced significant legal and financial challenges, including a major settlement with the U.S. Department of Justice in 2019 over violations of the Foreign Corrupt Practices Act. Under the leadership of Börje Ekholm, it has undergone a substantial restructuring program to improve profitability, involving thousands of job cuts and a sharper focus on its core networking business. It remains a key member of industry consortia such as the Open RAN Alliance.

Technology and standards

A cornerstone of its influence is its deep involvement in creating global technical standards, primarily through its long-standing participation in the 3rd Generation Partnership Project. It holds one of the largest portfolios of essential patents for 2G, 3G, 4G, and 5G technologies, licensing them to manufacturers worldwide. The company was a primary driver behind the development of the GSM standard in the 1980s and the WCDMA/UMTS standards for 3G. Its research arm, Ericsson Research, contributes heavily to pre-standardization work on future technologies like 6G, often in collaboration with academic partners such as the Royal Institute of Technology in Stockholm. It is also active in defining network slicing and edge computing architectures within bodies like the European Telecommunications Standards Institute.

See also

* Nokia * Huawei * Telecommunications industry * Mobile technology * Stockholm

Category:Telecommunications companies of Sweden Category:Companies listed on Nasdaq Stockholm