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ERICSSON

Ericsson to supply GSM technology to Vietnam

Ericsson has signed an agreement with Vietnam's Military Electronics and Telecommunications Co. (Viettel) to expand its GSM network, the Swedish telecom equipment maker said in a statement in Hanoi on Thursday.

“The agreement will further strengthen Ericsson’s position as Viettel’s leading GSM system supplier,” said Staffan Holmer, Ericsson’s head of sales for Asia Pacific in the statement.

Under the agreement, Ericsson will provide Viettel with core and radio access network equipment, service layer platforms, network rollout and support services, the statement said. The technology will enable Viettel to continue its rapid nationwide network rollout, it added.

Viettel, which became the fifth operator in Vietnam last October now has 500,000 mobile users and is considered the fastest growing mobile operator in the country. It aims to have 1.5 million subscribers by the end of the year.

Industry experts say Vietnam is the second fastest expanding telecoms market after China as it comes off a very low base.

(AFP)

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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