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Ericsson is a Swedish multinational networking and telecommunications company headquartered in Stockholm. The company is a worldwide leader in delivering ICT solutions. Its services include cloud applications, mobility, and broadband.
The Company offers its products and services to mobile and fixed network operators, as well as provides communications networks, telecom services, and multimedia solutions, globally.
Ericsson – Company Highlights
| Startup Name | Telefonaktiebolaget LM Ericsson |
|---|---|
| Headquarters | Kista, Stockholm, Sweden |
| Industry | Telecommunications equipment, Networking equipment |
| Founded | 1876 |
| Founders | Lars Magnus Ericsson |
| CEO | Börje Ekholm |
| Website | www.ericsson.com |
Ericsson – About and How it Works?
Ericsson – Logo and its Meaning
Ericsson – Founder and History
Ericsson – Mission
Ericsson – Joint Venture With Sony
Ericsson – Business Model
Ericsson – Revenue and Growth
Ericsson – Funding and Investors
Ericsson – Investments
Ericsson – Acquisitions
Ericsson – Competitors
Ericsson – Challenges Faced
Ericsson – Recent News
Ericsson – Future Plans
Ericsson – About and How it Works?
Ericsson Corporation is a leading multinational firm of telecommunications and networking equipment, headquartered in Stockholm, Sweden. Ericsson Inc. primarily serves network operators, transportation companies, utilities, and broadcasters in the US.
Ericsson’s growing services also offer consulting, network build-out, network optimization, and network management and maintenance services. Ericsson is one of the leading providers of Information and Communication Technology (ICT) to service providers.
The company enables the full value of connectivity by creating game-changing technology and services that are easy to use, adapt, and scale, making the customers successful in a fully connected world. Its core network products are antennas, transmitters, switching systems, and other gear used to build wireless telecommunications networks.
Ericsson – Logo and its Meaning
The company prepared several variations of the stylized E. It is also called “Ericsson’s three sausages” which is actually a tilted letter ‘E’.
To create a smoother identity, the geometry of the logo was altered to align with the pixel grid, meaning it would appear rendered on digital screens.
Ericsson – Founder and History
s and undertake small mechanical engineering jobs. Once the telephone arrived in Sweden, Ericsson began being commissioned to repair and install the new invention.
He quickly realized the possibilities of the telephone and started improving and creating his versions of the device. The first telephones manufactured by Ericsson were presented in 1878. Shortly thereafter, Ericsson’s unique wall-mounted telephones would soon become known throughout the world as the “Swedish pattern”.
Today the company is leading the way in creating a connected world, one where new technologies transform the way we interact and communicate. Through its innovations and ICT solutions, the company helps transform industries and create a world of new possibilities.
Sarika Anand
Ericsson – Mission
Ericsson’s mission is to lead transformation through mobility. Ericsson’s mission statement says, “We empower our customers to connect people and transform industries, as well as address some of the most pressing challenges of our time like climate change, and in doing so create a more sustainable world.“
Ericsson – Joint Venture With Sony
Sony Ericsson got into the alliance on 1st October 2001 and the main objective of this joint venture is “to develop an alliance that would allow Ericsson to reduce spending on the costly development of next-generation mobile phones at a time when many European telecom companies see their inventories piling up as the world’s cell phone market is growing much more slowly.”
Joint ventures often failed because of companies not being able to build customer base products, due to which customers switched to other competitive products that provide them with more reliable and innovative products. This is also the main reason for the failure of a joint venture with Sony Ericsson.
They were providing innovative products but their marketing strategy was not as effective and they could not attract customers.
They were not providing the advanced versions of mobiles as early as other competitors of mobile phone manufacturing were providing. Their R & D was slow as compared to other mobile phone manufacturers. They were not focusing on a proactive approach, they were also not productive or reactive. So this led to the downfall of this joint venture.
Ericsson – Business Model
The company operates three reportable business segments:
- Networks – Provides products and solutions for mobile and fixed communication, radio networks, core networks, IP and transmission networks, and cloud.
- Global Services – Provides network rollout services and professional services – specifically, managed services, customer support, consulting and systems integration (CSI), and network design and optimization services.
- Support Solutions – Provides software-based solutions for BSS and OSS, TV and media solutions, and services/solutions for the mobile commerce ecosystem.
Rishabh Rathi
Ericsson – Revenue and Growth
Ericsson said its revenue increased by 3 percent to SEK 55.1 billion in Q1 2022 as the reason for the increment in the network business.
| Year | Amount | Percentage Change from last year |
|---|---|---|
| 2021 | $27.088B | +6.94% |
| 2020 | $25.331B | +5.37% |
| 2019 | $24.039B | -0.94% |
| 2018 | $24.267B | +2.77% |
| 2017 | $23.613B | -9.26% |
Ericsson – Funding and Investors
Ericsson has raised a total of $663.2M in funding over 3 rounds. Their latest funding was raised on Jun 5, 2018, from a Post-IPO Debt round.
| Date | Round | Amount | Lead Investors |
|---|---|---|---|
| Jun 5, 2018 | Post IPO-Debt | €250M | European Investment Bank |
| Dec 27, 2017 | Post-IPO Equity | $370M | Nordic Investment Bank, Svensk Exportkredit |
| May 30, 2017 | Post IPO- Equity | – | Cevian Capital |
Ericsson – Investments
Ericsson has made 20 investments. Their most recent investment was on Jan 5, 2022, when Formant raised $18M.
| Date | Organization Name | Round | Amount |
|---|---|---|---|
| Jan 5, 2022 | Formant | Series A | $18M |
| May 6, 2021 | Einride | Series B | $110M |
| Apr 9, 2019 | PubNub | Series D | $23M |
| Jun 11, 2018 | Balena | Funding Round | $5M |
| Jan 31, 2018 | Trifacta | Series D | $48M |
| Sep 12, 2016 | PubNub | Venture Round | $6M |
| Jun 27, 2016 | Cask | Venture Round | – |
| Jun 27, 2016 | Balena | Series A | $9M |
| Apr 13, 2016 | Jolata | Series B | $7M |
| Nov 5, 2015 | Cask | Series B | $20M |
| Aug 24, 2015 | Mirantis | Series B | $100M |
| Jan 21, 2015 | Pluribus Networks | Series D | $52M |
Ericsson – Acquisitions
Ericsson has acquired 39 organizations. Their most recent acquisition was Vonage on July 21, 2022. They acquired Vonage for $6.2B.
| Acquiree Name | Date | Amount | About Acquiree |
|---|---|---|---|
| Vonage | July 21, 2022 | $6.2B | Vonage offers a business communication solutions that can easily upgrade customer and employee services |
| Cradlepoint | Sep 17, 2020 | $1.1B | Cradlepoint offers a cloud-based network solution to connect people, places, and things over wired and wireless broadband |
| Genaker | Mar 12, 2020 | – | Genaker was founded in 2004 as an independent company dedicated to developing innovative mobile solutions |
| CENX | Sep 4, 2018 | – | Cenx provides carrier Ethernet interconnect solutions for service and cloud exchange providers |
| VidScale | Apr 4, 2018 | – | VidScale is a provider of hardware and cloud-based CDN and transparent caching solutions |
| Allolio&Konrad | Dec 1, 2016 | – | Allolio&Konrad provides business consulting services to the telecommunication industry |
| Ericpol | Jun 21, 2016 | – | Ericpol Sp. z o.o. is an engineering company that has been operating on international ICT market since 1991 |
| NodePrime | Apr 5, 2016 | – | NodePrime develops datacenter infrastructure platforms |
| FYI Television | Jan 19, 2016 | – | FYI Television, Inc. (FYI) is a global TV metadata and entertainment image content expert, accumulates and distributes TV entertainment |
| Envivio | Sep 10, 2015 | $125M | Envivio provides software-based solutions for multi-screen video processing and delivery |
| TimelessMIND | Apr 9, 2015 | – | TimelessMIND is a consulting and systems integration company specializing in operations and business support (OSS/BSS) |
Ericsson – Competitors
Ericsson’s top competitors include Amdocs, Infosys, Cisco, ZTE, Huawei, and Nokia companies.
Ericsson – Challenges Faced
On 7 December 2019, Ericsson agreed to pay more than $1.2 billion (€1.09 billion) to settle US criminal and civil investigations into foreign corruption. US authorities accused the company of conducting a campaign of corruption between 2000 and 2016 across China, Indonesia, Vietnam, Kuwait, and Djibouti.
Ericsson admitted to paying bribes, falsifying books and records, and failing to implement reasonable internal accounting controls in an attempt to strengthen its position in the telecommunications industry.
Ericsson said its revenue dropped 2 percent to SEK 49.8 billion in Q1 2020 as compared with 48.9 billion in Q1 2019. Ericsson said the Covid-19 pandemic had a limited impact on operating income and cash flow in the quarter. Gross margin excluding restructuring charges improved to 40.4 percent (38.5 percent).
Sarika Anand
Ericsson – Recent News
- Ericsson has successfully completed the acquisition of a cloud communication service providing company Vonage.
- Malaysia is selected to be the manufacturing hub of Ericsson’s 5G equipment in Asia.
- Ericsson upgraded Telstra’s optical network capacity to 400GE
- Ericsson is ready to take 5G into space along with other firms like Qualcomm and Thales.
- Ericsson is approached by Reliance Jio along with Nokia for 5G telecom gear.
Ericsson – Future Plans
- Ericsson has its hand in the evolution of mobile networks and 5G. Their next plan is to make 5G the worldwide standard for the upcoming generation of wireless tech. The company is working with several other mobile operators AT&T, China Mobil, Deutsche Telecom, Korea Telecom, Turkcell, TeliaSonera, Verizon, and Vodafone telecom to make 5G a reality.
- As we all know, IT is no longer just a support function and it needs to be redefined again and again with the changing needs, something that Ericsson has always been up to. The company’s Cloud solutions are designed as digital factories: software-defined, automated, and accessible easily.
- As we move into the Networked Society, devices will become more capable and integrated into vast numbers of different applications across sectors. Ericsson takes a holistic view of the Internet of Things (IoT) by providing key solutions to make it happen like the company-managed connectivity services, applications, and systems integration activities. The Ericsson approach is to ensure that all the necessary parts exist for stakeholders and users to benefit from the Internet of Things.
Conclusion
Ericsson is a new-age ICT solution-providing company headquartered in Sweden. The company has its mission decided to empower people and create new technologies that define today’s issues with sustainable solutions.
Ericsson is a leading telecommunication and networking company that has been in a joint venture with different firms and is currently competing with companies like Infosys, Huawei, Nokia, etc. The business model and plans of Ericsson are also discussed above.
FAQs
What does Ericsson company do?
Ericsson is a Swedish technology company that provides and operates telecommunications networks, television and video systems, and related services.
Who are Ericsson’s competitors?
Ericsson’s top competitors include Amdocs, Infosys, Cisco, ZTE, Huawei, and Nokia.
Who owns Ericsson now?
The two majority owners of Ericsson have remained the same from the time of its foundation. The two owners are named the Wallenberg family and the Handelsbank Sphere.
What is Ericsson famous for?
Ericsson is famous for its service of 140 years in the industry. Since its start, it has made many revolutionary products and is responsible for some best-known products such as mobile phones, managing networks, etc.
