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ERICSSON

Ericsson signs US defence deal

Ericsson have agreed a multi-million dollar contract to deliver a 3G-based communcation satellite system to US defence concern General Dynamics.

The order for the so-called Mobile User Objective System (Muos) is reportedly worth 200 million dollars and will deliver voice, text and image data to military units operating on land, air and sea.

Ericsson have not divulged how long the contract will last.

Ericsson’s spokesman, Peter Olofsson, said that the company has never signed a contract for this type of product with an international defence organisation before.

“The order is a strategically important breakthrough,” Olofsson told TT.

Meanwhile, the company has also agreed a deal to handle the development of Telia Sonera and Tele 2’s jointly owned Svenska UMTS 3G-network. The deal, worth an unspecified amount, is initially for three years.

Ericsson will ensure that Telia Sonera’s and Tele2’s existing GSM-networks work in conjunction with the 3G-network.

Sources: Dagens Nyheter, Svenska Dagbladet

SWEDEN AND UKRAINE

Ericsson suspends all Russia operations indefinitely

Swedish network equipment maker Ericsson said Monday that it was suspending all of its Russian operations over the war in Ukraine for the foreseeable future.

Ericsson suspends all Russia operations indefinitely

The telecom giant already announced in late February that it would stop all deliveries to Russia following Moscow’s February 24 invasion of Ukraine.

“In the light of recent events and of European Union sanctions, the company will now suspend its affected business with customers in Russia indefinitely,” Ericsson said in a statement.

The company added that it was “engaging with customers and partners regarding the indefinite suspension of the affected business.”

“The priority is to focus on the safety and well-being of Ericsson employees in Russia and they will be placed on paid leave,” it said.

READ ALSO: How has Sweden responded to Putin’s war in Ukraine so far?

Hundreds of Western firms ranging from Ikea to Coca-Cola, Goldman Sachs and McDonald’s have stopped operations in the country since the invasion, with French banking group Societe Generale announcing Monday it was selling its stake in Russia’s Rosbank.

Ericsson has around 600 employees in Russia, and is a “major supplier to the largest operator MTS and the fourth largest operator Tele2,” a company spokeswoman told AFP, adding that together with Ukraine, Russia accounts for less than two percent of revenue.

As a result, the equipment maker said it would record a provision for 900 million Swedish kronor ($95 million, 87 million euros) for the first quarter of 2022 for “impairment of assets and other exceptional costs,” though no staff redundancy costs were included.
Ericsson is due to publish its first quarter earnings on April 14.

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