New China alliance for Ericsson

Swedish telecommunications giant Ericsson said on Thursday that it had teamed up with China's leading telecom equipment maker ZTE for mobile network solutions in China and that it would open a third-generation (3G) wireless research and development center in the country.

The strategic alliance and the research center, based in Nanjing in east-central China, are both aimed at the development and delivery of Time Division Synchronous Code Division Multiple Access (TD-SCDMA), a technology invented in China aimed at simplifying the creation of 3G networks.

“Ericsson has always been dedicated to providing advanced mobile products and solutions that can best address the needs of local markets,” head of Ericsson’s China division Mats Olsson said in a statement.

“With our alliance with ZTE, I am confident that we are very well positioned to capture the huge opportunities presented by China’s fast-growing mobile market,” he added.

The deal calls for Ericsson to integrate some of ZTE’s TD-SCDMA technology into its own network, and the two companies have also agreed to team up on trials of the technology in China.

The new research center, meanwhile, will open with 50 employees.

China today counts some 300 million mobile phone subscriptions, a number that increases by about five million each month.

Ericsson, which employs 3,600 people and has nearly 25,000 suppliers in China, currently holds about 40 percent of the country’s mobile market, with its Chinese operations accounting for 10 percent of its overall results. (AFP)


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.