Ericsson

Vision

Adheringtothevisionof"buildingaworldofhumancommunication",Ericssonhasalwaysfocusedonthetelecommunicationsindustry,constantlydefiningthemeaningof"progress"inthetelecommunicationsindustry,andachievingevery"progress",Leadingthetechnologicaldevelopmentandtransformationoftheglobaltelecommunicationsindustry,andmaintainingaleadingglobalmarketposition.

Ericssonistheworld'slargestmobilesystemsupplier,abletoprovideequipmentandservicesforallmajormobilecommunicationstandardsintheworld.40%ofglobalmobilecallsaremadethroughEricsson'ssystem.Ericssonhasmorethan35%oftheglobalGSM/GPRS/EDGEmarketshareand40%oftheWCDMAmarketshare.EricssonmaintainsaleadingpositioninbothIMSandsoftswitchfields,andisalsotheworld'slargestcompanyprovidingprofessionaltelecommunicationsservices.Ranked309thintheFortuneGlobal500listin2012.

Adheringtotheconceptofbeinganexcellentcorporatecitizen,Ericssonhasextensivelyimplementedsustainabledevelopment,meticulouslypursuedthecompany'ssocialresponsibility,andestablishedahigh-quality,full-rangeeffectivemanagementsystemandoperation.NotonlywasitratedasaleaderinthesustainabledevelopmentoftheDowJonesGlobalSustainabilityIndex(DJSI)inthefieldofcommunicationstechnology,italsoobtainedtheworld'sfirstglobalISO14001certificationissuedbytheBritishStandardsInstituteforitsexcellentenvironmentalmanagementsystem.

InFebruary2011,attheMobileWorldCongress(MobileWorldCongress)heldinBarcelona,​​Spain,Ericssonpioneeredtheconceptofa"networksociety"thathumanbeingsarestridingintotheInternetofEverything.IntheeyesofEricsson,"networksociety"isaformofsustainablesocialdevelopment,where"allthingsthatcanbenefitfromconnectionwillbeconnected."Broadband,mobileandcloudarethethreemajordrivingforcesofthe"networksociety".InEricsson'sview,the"networksociety"willprofoundlychangethefutureofmankind,businessandsociety.Whetherpeoplelikeitornot,thisepoch-makingtechnologicalchangewillchangetheworld.

Origin

OnApril1,1876,RushMargrass-EricssonandhiscolleagueAndersonregisteredtogetheras"RamaEricssonMachineryRepairCompany".InarentedkitchenatStockholmDrottninggatan15,Ericsson'ssimpleworkshophasstarted.TheworkingconditionsofEricsson'selectromechanicalworkshopareverysimple.Themainequipmentisapedalmachineformanufacturinginstruments.Theoperatingcapitalisonly1,000crowns,whichisborrowedfromMariaStromberg.

Atthattime,AlexanderGrahamBelloftheUnitedStateshadjustobtainedthefirstbatchofpatents.Sincethen,thetelecommunicationsindustryhasopenedupawholenewfieldtotheworld.Ericssonkeenlyshowedgreatenthusiasmforthisnewfield.Atthebeginningofthebusiness,Ericssonwasmainlyengagedinrepairingtelegraphsandotherelectricalinstruments.Ericssonquicklydesignedandproducedaseriesofimprovedequipmentwithitsextraordinarytalents,fullenergy,refinedcraftsmanshipandrichworkexperience.AnexampleworthmentioningistheEricssonautomatictelegraphdeviceusedintherailwaysystem.Ericssonhaswonwideacclaiminthelocalareaforitshigh-qualityworkandexcellentproducts,andsoonreceivedordersfrommanypublicandprivateagenciesfromthefire,policeandrailwaytransportationdepartments.

In1877,telephonesproducedintheUnitedStatesbegantoentertheSwedishmarket.Ericssonquicklymasteredtelephonemanufacturingtechnologythroughmaintenanceandseriousresearchontelephones,andinNovember1878launchedEricsson’sownTelephone.BecauseEricssondesignedthephonetobeeconomicalanddurable,itsoonwonalargenumberoforders.Althoughthetelephonewasstillaluxuryformostpeopleatthetime,Ericssonrealizedwithhissuperhumaninsightthatanewandpromisingindustrywasabouttobeborn.Ericssonhasdevotedhislife'senergytotheresearchandimprovementoftelephonesandrelatedequipment.

Development

Start-upsuccess

In1880,theAmericanBellCompanyestablishedSwedeninStockholm,Gothenburg,Malmo,NdsvalandSoderhamnusingequipmentproducedintheUnitedStates.Thefirsttelephonenetwork.ForEricsson,thesituationisextremelyserious.IfthereisnotenoughevidencetoprovethathisequipmentiscomparabletoBell'sproducts,thenEricssonisindangeroflosingtheentiredomesticmarketinSweden.

In1881,thetimefortheshowdowncame.ThecityofAvle,locatedontheBalticcoast,madeapublictenderforalocaltelephonesystem.Bell’sbidwas200crownsforeachhouseholdtoinstallandoperatethesystemeveryyear,anditcouldcompetewiththelocalTheusersignsa5-yearcontract.Throughcarefulresearch,EricssonbravelystooduptochallengeBell,andproposedthattheinitialinstallationfeeforeachuseris275kronor,andeachuseronlyneedstopay56kronorperyearasoperationandmaintenancecosts.Atthesametime,theequipmentproducedbyBellandEricssonwasinstalledinGavleatthesametimefortrialcomparison.

Mosttestersfinallyverifiedthattheproductsofthetwocompaniesworkedwell,butEricsson'sphoneswere"moreconvenient,durable,andbeautiful."ThroughthefinalappraisalofGavleSwitchAssociationandexperts,Ericssonfinallyobtainedthegreatsuccessofthisbidding.Tendayslater,Ericsson'sequipmentbiddingplanwasslightlyrevisedandputintoeffect.

InNorwayinthesameyear,BellandEricssononceagainlaunchedamarketbidding,andEricssonwon.ThisisthefirstbrilliantcommercialachievementinthehistoryofEricsson,anditisalsoanimportantmilestoneinthehistoryofEricsson'sdevelopment.ItpubliclydemonstratedtotheworldthatEricsson'stechnologyandproductsarecapableofcompetingwiththeworld'slargestcompanies.

Rapiddevelopment

In1880,Ericssonhadonly10workersontheemployeelist.By1884,thisnumberwascloseto100.Sincethen,inmorethanacenturyofdevelopment,Ericssonhasalwaysmaintainedastronggrowthmomentum,andtherehasbeenalmostnoobviousrecession.In1883,theStockholmPublicTelephoneCompany(SAT),foundedbyEricssonandSeidgren,signedaformalsupplycontractforthesupplyoftelephones.EricssonwasfullyresponsibleforthesupplyofSATtelephonesandrelatedequipment.Sincethen,thelong-termcooperationbetweenEricssonandSAThasbeenstarted.In1883,Ericssonbegantobuilditsownfirstlarge-scalefactory.Ericssonmovedintoanewfactorythefollowingyear.In1885,basedonAntonArvin'sdesign,Ericssonproducedthefirsthandheldmicrophonephone.In1887,EricssonsignedthelargestcontractatthetimetosupplybasicequipmentforthelargestEuropeantelephoneexchangeopenedbySATinStockholm.

In1892,Ericssonmadesignificantprogressinitsoverseasbusinessexpansion,establishedbusinesscontactswiththeDutchtelephonecompany,andsignedthefirstsupplycontractwithChina.In1893,Ericssonproducedmorethan10,000telephones.In1896,EricssonCo.,Ltd.wasestablishedwithanoriginalsharecapitalof1millioncrowns.In1897,EricssonbegantoopenafactoryinSt.Petersburg,Russia,toassembleandproducetelephones.

In1902,EricssonopenedanofficeinNewYork.In1903,EricssonandtheBritishNationalTelephoneCompanyjointlyestablishedtheBritishEricssonManufacturingCo.,Ltd.,withafactorylocatedinBeeston.In1904,EricssonpurchasedlandinBuffalo,theUnitedStates,preparingtobuildafactoryforEricssonTelephoneManufacturingCompany.In1905,EricssonandSATandothercompaniesjointlyacceptedthefranchisetooperatetelephonesinMexico,andin1909itwastakenoverbythenewlyformedMexicoEricssonCompany.Ericssonacceptedthecommissionin1908toberesponsibleformakingthetelephonenetworkinBangkok,Thailandavailable.In1911,EricssonestablishedtheEricssonTelephoneCompanyinParisandsetupafactoryinColumbus,asuburbofParis.EricssonHungarywasestablishedinthesameyearwithafactoryinBudapest.

BrandPromotion

EricssonwasfoundedinSwedenin1876.Thefounderofthecompany,LarsMagnusEricsson(LarsMagnusEricsson)openeda"LaMa·Ericsson"MachineryRepair"company.Atthebeginningofthebusiness,Ericssonwasmainlyengagedinrepairingtelegraphsandelectricalmeters.In1877,Mr.EricssonintroducedhisowntelephoneinNovember1878throughmaintenanceandseriousresearchonthetelephone.In1881,EricssonachievedtwokeybidsuccessesinSwedenandNorway,pavingthewayforEricssontoopenuptheinternationalmarket.EricssonsignedthefirstsupplycontractwithChinain1892.

Inthecourseofmorethan130yearsofdevelopment,thecompanyhasexperiencedrapidgrowthseveraltimesandhasalsoundergoneseveralcrises.AfterWorldWarII,thedemandforthetelephonemarketsurged.Ericssontooktheleadinsuccessfullydevelopingthecrossbarsystemandthusincreaseditsmarketshare,becomingawell-knowncommunicationscompanyrecognizedbythetelecommunicationsindustry.Intheearly1970s,thetelecommunicationsindustrybegantoenterthedigitalage.Afterunremittingefforts,EricssondevelopedtheAXEswitchthatwaspopularinthemarket.

Intheearly1980s,after10yearsoftechnologyaccumulation,Ericsson'sdigitalswitchingtechnologytooktheleadintheindustry.Withthegradualriseofmobilecommunications,Ericssonbegantogainmoremarketsharebyvirtueofitstechnologicaladvantages.Inthe1990s,theglobalcommunicationsindustryenteredarapidlygrowingdigitalera.ThisperiodisalsoaperiodwhenEricssonhasundergonemajorchanges.Ericsson'sbusinessfocushasalsoshiftedfromfixedtelephonestomobilecommunicationsystems,andithasachievedgreatsuccessintheGSM/GPRSnetworkera.Witha40%marketshareinthe2G/GSMfieldandanearly50%marketsharein2.5G/GPRS,Ericssonhasbecometheundisputedleaderinthecommunicationsindustry.

Inthe1990s,thetelecommunicationsindustryexperiencedaperiodofexplosiverapidgrowth,andEricssonalsomaintainedanaverageannualgrowthrateofmorethan35%for10consecutiveyears.However,since2000,duetothenegativeimpactoftheglobaleconomicslump,thecommunicationsindustryhasalsobrakedsharply,andmanylargetelecommunicationscompaniesaroundtheworldhavebeenseverelyimpacted.Ericssonisnoexception.Thecompany'soperationshavefallenintoalossafter10yearsofrapidgrowth.Inthefaceoflosses,Ericssonquicklyresponded:Inthefirstfiscalquarterof2001,Ericssonlauncheda"costcontrolplan"toreduceoperatingcostsandimproveefficiency,andimplementeda"slimmingaction."Ontheotherhand,inordertorespondtochangesinthemarketandtheindustry,Ericssonhasbeguntoadjustitsmarketstrategy,optimizingandintegratingthecompany'scorebusinessinanall-roundway.

InFebruary2001,EricssonhandedoveritsmobilephonemanufacturingbusinesstoFlextronics(FLEXTRONICS),andfocusedonmobilephonetechnologyresearchanddevelopment,design,brandpromotionandmarketing.

InSeptember2001,EricssonestablishedasubsidiaryEricssonMobilePlatformCompanytoprovideopen-standard2.5Gand3Gtechnologyplatformlicensestoglobalmobilephoneandwirelessinformationequipmentmanufacturers.ThecompanylaterdevelopedintoEricsson’sAnewcorebusiness-technologylicensing.

InOctober2001,EricssonandSonyofJapan(SONY)eachinvested50%toformajointventurecompanySonyEricsson(SonyEricsson)tomergetheirmobilephonebusinesses.SonyEricssonisheadquarteredinLondonandiscommittedtodevelopingandproviding2.5Gand3Gmobileterminalstousersworldwide.

In2002,Ericsson’scorebusinessdevelopedintofourpillarbusinessesafterundergoingadjustments:networksystemequipment,globalprofessionalservices,technologyplatformlicensing,andSonyEricsson’smobileterminals.InSeptember2002,EricssonsuccessfullyissuednearlyUS$3billioninnewshares,whichinjectednewvitalityintothecompany'sfinancialdevelopment.

InApril2003,SvenkaybecamePresidentandCEOofEricsson.Svenkeyinsistedandfurtherstrengthenedthepredecessor's"costreductionplan"toachievethegoalof"lean,efficient,andlow-cost"inthecompany'soperations.Inthethirdquarterof2003,Ericssonannouncedthatithadendeditslossesandreturnedtoprofitability.Withtherecoveryoftheglobalcommunicationsindustry,Ericsson’spreviousseriesofstrategicadjustmentshaveshownresults,andEricssonhasperformedprominentlyintheglobal3Gmarket.Ericssonowns40%ofthe3GWCDMAmarketshareandhasanindisputableglobalmarketleadershippositioninthe3Gfield.

Thankstoyearsoftechnologyaccumulationandhugeinvestmentinresearchanddevelopment,after3G,Ericssonisstilltheleaderinthe4GLTEinternationalmarket.LTE(LongTermEvolution)isthe4GstandardfirstproposedbyEricssonandconfirmedbytheinternationalstandardsorganization3GPP.Since2009,Ericssonhasdeployedmorethan1304GLTEnetworksworldwide,coveringmorethan300millionusers.

OnFebruary15,2012,thejointventurecompanySonyEricssonwasacquiredbySonyandbecameawholly-ownedsubsidiaryofSony.SonyEricssonthenchangeditsnametoSonyMobile.Ericssonofficiallywithdrewfromthefieldofmobileterminalsandturnedtofocusonmobilenetworkequipmentandcommunicationsprofessionalservices.

OnAugust10,2018,EricssonannouncedthatinordertogainaheadstartintherapidlydeployedU.S.5Gnetworkmarket,EricssonwillincreaseitsinvestmentintheU.S.market.ThiswillbringEricssonclosertocustomerstomeetthegrowing5GdemandintheU.S.andeventheglobalmarket.

OnSeptember12,2018,mobiletelecommunicationsequipmentmanufacturerEricssonannouncedonTuesdaythatithadsignedamulti-yearcontractworthUS$3.5billionwiththeoperatorT-MobileUSAtosupportthelatter’s5GNetworkdeployment.Thisisthelargest5GorderthatEricssonhasannounced.

OnOctober10,2018,Ericssonannouncedtheofficiallaunchofthe5Gglobalroadshow,andBeijingwasthefirststopoftheroadshow.Duringtheroadshow,Ericssondemonstratednumerous5Gproductsandsolutions.

OnOctober23,2018,Qualcommannouncedatthe4G/5GSummitandEricssonthattheyhavesuccessfullyusedsmartphone-sizedmobiletestterminalsinthefrequencybandbelow6GHztocompleteanew5Gmeetingwith3GPPRel-15specifications.AirinterfaceOTAcall.

OnNovember7,2018,atthefirstChinaInternationalImportExpoheldinShanghai,EricssonandChinaUnicomreachedacooperationagreementonequipmentprocurementin2019.

OnDecember6,2018,atthemediacommunicationmeetingofthe2018ChinaMobileGlobalPartnerConference,ChinaMobileandEricssonjointlypubliclydemonstratedthelatest5Gconnection-basedremotemusicensembleapplicationforthefirsttime.

OnAugust8,2019,Ericsson(ERIC.US)announcedthelaunchofa5GcommercialnetworkinGermanywithVodafone(VOD.US)

InSeptember2020,EricssonandQualcommannouncedThetwopartiescompletedthekeyinteroperabilitytest,whichistheworld'sfirstbatchof5Gindependentnetworking(SA)carrieraggregationinteroperabilitytestsacrossFDD/TDDandTDD/TDDfrequencybandssuccessfullycompleted.5Gcarrieraggregationallowsoperatorstosimultaneouslyusemultiplespectrumchannelstotransmitdatabetweenbasestationsand5Gmobileterminals.

Leadership

HansVestbergPresidentandCEOofEricsson

Mr.WeiHansiinJanuary2010HehasservedasPresidentandChiefExecutiveOfficerofEricssonsinceOctober.

FromOctober25,2007totheendof2009,Mr.WeiHansiservedasthechieffinancialofficerofEricsson.Mr.WeiHansibeganasSeniorVicePresidentofEricssonGroupCorporationandGeneralManagerofGlobalTelecommunicationsProfessionalServicesBusinessUnitin2003,andwasappointedasExecutiveVicePresidentin2005.

From2002to2003,Mr.WeiHansiservedasthepresidentofEricssonMexico.

From2000to2002,Mr.WeiHansiservedastheChiefFinancialOfficerofEricssonNorthAmericaandwasinchargeofthefinancialaffairsoftheAmericas.From1998to2000,Mr.WeiHansiservedastheChiefFinancialOfficerofEricssonBrazil.

SincejoiningEricssonin1991,Mr.WeiHansihasheldvariousmanagementpositionsinChina,Sweden,ChileandBrazil.

Mr.WeiHansiwasborninHudiksvall,Sweden,andgraduatedfromUppsalaUniversityin1991withabachelor'sdegreeinbusinessmanagement.

ResearchandDevelopment

Ericssonhasalwaysattachedimportancetothedevelopmentofnewtechnologiesandfuturesystemsandproducts,andhasinvestedmoreinresearchanddevelopmentthanothercompaniesintheindustry.Inrecentyears,theannualinvestmentinresearchanddevelopmenthasaccountedfor15%-20%ofthecompany'sannualsales.In1998,Ericsson’sR&DinvestmentwasUS$3.7billion,equivalentto16%ofthatyear’ssales.Ericssonhasmorethan23,000peopleengagedinresearchanddevelopmentin23countries.In1998,Ericssonalsoestablishedanewdepartment-EricssonResearch,responsibleforadvancedresearch.

December19,2016,SanDiego-QualcommTechnologies,Inc.,asubsidiaryofQualcommIncorporated,Ericsson,andSKTelecomannouncedplanstocooperateinconductinginteroperabilitytestingandOTAfieldtrialsbasedonthe5GNRstandard.3GPPisformulating5GNRstandardsbasedonitsspecifications.

Organizationalstructure

Inahighlycompetitivemarket,thekeytoEricsson’ssuccessistoestablishacustomer-centricandflexibleorganizationalstructure.TheneworganizationplanwaslaunchedonSeptember30,1998,andwasfullyimplementedonJanuary1,1999.Ericsson’soveralloperationsaredividedintothreebusinessunits,servingthreedifferentcustomerareas,namelynetworkoperatorsandserviceproviders,enterprisesolutionsandconsumercommunicationsproducts.Eachdepartmentisledbyanexecutivevicepresidentwhoisalsoamemberofthecorporateexecutivecommitteeandisresponsiblefortheprofitandlossofthedepartment.

Inordertohighlightthepositionofcustomersandthemarketmore,Ericssonhasestablishedacustomerresponsibilitysystemattheregionalandgloballevels.Inaddition,membersofthecorporateexecutivecommitteearealsoservinginaheadquartersofficeinStockholm,SwedenandabroadinLondon,Dallas,MiamiandHongKong,inordertomorefavorablyattractinternationaltalents.

Producttechnology

1.Networkoperatorsandserviceproviders

Ericssonnotonlyprovidescomprehensivesolutionsformobileandfixednetworks,butalsoprovidessolutionsfortheemergingmarketunderthegeneraltrendofconvergenceoftelecommunicationsanddatacommunications,andfixedandmobileservicesplan.Ericsson’ssolutioncombinesitsuniqueachievementsinthewirelessfield,itsabilitytobuildsecureandreliablenetworks,anditsstronginvestmentinthefieldofIPtechnology.

2.Mobilecommunications

Ericssonisaworldleaderinmobilecommunications,anditsmarketsizeismorethantwicethatofitsclosestcompetitor.Nearly40%ofmobilephonecallsintheworlduseEricsson'snetworksystem,andabout350mobilenetworkoperatorsareEricsson'scustomers.

Ericssoncanprovidesystemequipmentforallmajormobilecommunicationstandards,includingthemostwidelyusedmobilecommunicationstandard-GlobalSystemforMobileCommunications(GSM),themaindigitaltransmissionsystemstandardandtimedivisiononlyusedinJapanMultipleaccess(TDMA).AfterEricssonacquiredQualcomm'sbasicbusinessunitinMarch1999,itaddedCDMAOneproducts.Startingin2000,Ericssonwillprovidealldigitalmobilestandardinfrastructureandmobilephonesintheworld.

3.Mobiledatacommunication

Ericssonisdevelopingrapidlyintheemergingfieldofmobiledatacommunication,andhasplayedadrivingroleinthedevelopmentofthethird-generationmobilesystem.Thethird-generationmobilesystemhasahighdatatransmissionandconversioncapacity,andcanprovidewirelessaccesstotheInternetandmobilemediaservices.

Ericssonhasbeenengagedintheresearchofthird-generationmobilecommunicationtechnologyformorethantenyears,andisthefirstcompanytoprovidewidebandcodedivisionmultipleaccess(WCDMA)experimentalsystems.InApril1999,EricssonreceivedanordertoprovideWCDMAmobilephonesandbasestationequipmenttoNTTDoCoMoinJapan.Thiswastheworld'sfirstWCDMAcommercialorder.Atthesametime,EricssonhasalsoestablishedandimprovedexperimentalsystemsinGermany,Italy,theUnitedKingdom,theUnitedStates,Canada,Sweden,JapanandChina.Thesesystemsareundergoinghigh-speedtransmissionexperiments.

EricssonisalsoconstantlyimprovinganddevelopingtheexistingGSMandTDMAsystems.Byusinggeneralpacketradioservice(GPRS)andaddingdataglobalimprovementmode(EDGE)andotherpacketswitchingtechnologies,theycanprovidemoreGooddatacommunicationservice.InearlyJanuary1999,Ericssonwontheworld'sfirstGPRScontractfromtheGermannetworkoperatingcompanyTandMobile,whichhasoccupied60%oftheworld'sGPRSmarket.

FromR&D,procurementtomanufacturing,Ericsson’sglobalstrategyistostrivetobebackedbyoutstandinglocalcompanies.Ericsson(China)Co.,Ltd.PresidentRuiSimaitoldreportersthatthelocalizationdevelopmentstrategymeansthatEricssonhaschosenadevelopmentpaththatstrivestobecomeapartofChina'sindustry.AsanestablishedmultinationalcompanythathasintroducedtelephonestoChinasince1894,thisdevelopmentpathisthechoiceofEricsson'sChinacomplex,anditisalsoawisechoice.

Operatingbusiness

Chipbusiness

InAugust2013,afterthedissolutionofthejointventurebetweenEricssonandSTMicroelectronics,STEricsson,EricssonreceivedLTEultra-thinChipbusiness.Sincethen,thechipbusinessunithasbeencommittedtoputtingthefirstdevicesintegratedwithEricssonchipsonthemarket.InAugust2014,theEricssonM7450chipwassuccessfullycommercialized.

Ericssonannouncedwhenittookoverthechipbusinessthatitwouldevaluatethesuccessofthechipbusinesswithin18-24monthsaftertheintegration.Afterevaluatingthebusiness,Ericssonfoundthatafterself-integration,thechipmarkethasdevelopedrapidly,andtheexpectedmarketforultra-thinchipsisshrinkingdaybyday.Atthesametime,thechipmarketisalsofacingvariouschallengessuchasfiercecompetition,priceerosion,andacceleratingtechnologicalinnovation.

InSeptember2014,Ericssondecidedtostopchipdevelopmentandinsteadpaymoreattentiontoopportunitiesforwirelessnetworks.Ericssonsaidthatinordertograsptheopportunitiesinwirelessnetworks,especiallyinthefieldsofsmallcells,energyefficiencyandM2M,Ericssonurgentlyneedstoaddabout500R&Dpersonnel.SomeoftheresourcesofthechipbusinessunithappentohaverelevantR&Dcapabilitiestosupportthisgrowingdemand.

BusinessinChina

Ericsson’sbusinessdealingswithChinacanbetracedbackto1982.EricssonopeneditsfirstofficeinChinainBeijingin1985,andEricsson(China)Co.,Ltd.wasestablishedin1994.

ChinahasalwaysbeenoneofEricsson'smostimportantmarketsintheworld.EricssoncontinuestobuildChina'scorepositioninEricsson'sglobalcorecenterintermsoftalents,productionandR&D.Atpresent,ChinahasbecomeoneofEricsson'sthreemajorproductsupplycentersintheworld.In1997,EricssonChinaAcademywasestablishedinBeijingtocultivateoutstandingtechnicalandmanagerialtalentsfortheChinesetelecommunicationsindustry.In2002,EricssonChinaResearchandDevelopmentInstitutewasformallyestablishedinBeijing.

EricssoninChina-Continuouslystrengtheningthe"CoreChina"developmentstrategy

Ericssonhasmorethan11,000employeesinChina.In2012,intermsofsalesrevenue,EricssonChinarankedEricsson'sthirdlargestmarketintheworld(aftertheUnitedStatesandJapan),accountingfor6%ofthegroup'stotalsales.

WiththevigorousdevelopmentofChina'scommunicationsindustry,whetheritisproductionandsupply,technologyresearchanddevelopmentorprofessionalservices,China'sstatusastheglobalhubofEricssonhasbecomemoreandmoreprominent.InDecember2000,whenChinaissueditsTenthFive-YearPlan,Ericssonsubmitteditsdevelopmentplanfor2001-2005inChinatotheChinesegovernment.Amongthem,thefourareasofhigh-techinvestment,jobcreation,exportincrease,andR&DandhumanresourcedevelopmentarespecificallymentionedtogreatlyincreaseEricsson'sinvestmentinChina.Sincethen,Ericssonhastakenthestepstobuilda"coreChina".Inthenextfewyears,EricssoncontinuedtoupgradeitsindustrialbaseinChina-NanjingEricssonPandaCommunicationCo.,Ltd.Today,thebasehasbecomeEricsson'slargestsupplyhubintheworld.

WhilebuildingChinaintoaproductionandsupplyhub,EricssonisalsocommittedtobuildingChinaintothecornerstoneofEricsson'sglobaltechnologyresearchanddevelopment.Atpresent,EricssonChinahasmorethan4,300employeesengagedintechnologyresearchanddevelopment,andtheannualR&Dinvestmentexceeds1billionyuan.SincetheestablishmentofEricssonChinaR&DCenterin2002,Ericsson'sR&DresourcesinChinahavebeeneffectivelyoptimizedandintegrated,andithasgrowntobecomeEricsson'ssecondlargestR&Dbaseintheworld.In2004,EricssonChinaexportedthefirstbatchof3G/WCDMAbasestationproductsdevelopedandmanufacturedlocallyinChina,whichfullyprovedEricsson'scomprehensive3GlocalR&DandproductioncapabilitiesandresourcesestablishedinChina.

Since1995,EricssonhasbeguntobuildaprofessionaltelecommunicationsserviceteaminChina,andtheproportionofprofessionalservicebusinessinChina'soverallbusinesshascontinuedtogrow.Ericssonhasestablishedfirst-linesupportserviceorganizationsin36citiesinChina.Thecompanyhasmorethan9,000first-lineserviceengineersandservicesupportpersonnelfrompartners,andhasformedathree-leveltechnicalsupportsystem.Ericssonalsoattachesgreatimportancetocultivatinglocalizedtalents.In1997,EricssonestablishedtheEricssonChinaAcademyinChina,whichtrainedalargenumberofhigh-qualitytechnicalandmanagerialtalentsfortheChinesecommunicationsindustry.

ThecooperationbetweenEricssonandChinahasalonghistoryofover100years.Asearlyas1892,EricssonreceivedordersfromChina.In1894,2,000EricssontelephonestraveledacrosstheoceantoShanghai.Inthissense,EricssonhasbecomeasupplierofChina'scommunicationsproductssincethen,andthehistoryofcooperationwithChinahasenteredthe120thyear.Formorethan100years,EricssonhasmadepositivecontributionstoChina’seconomicdevelopmentandtherapidriseofthecommunicationsindustrywithproductsandtechnologies,andcreatedmanyfirstsandfirstsinthehistoryofChina’stelecommunicationsdevelopment:

In1892,ChinaEricssonordered2,000telephonesets,whichkickedoffacentury-oldcooperationbetweenthetwoparties;

In1900,thefirstmanualswitchboardwasputintouse;

In1924.ThefirstautomaticswitchwasputintouseinShanghai;

In1961,thefirsttwocrossbarswitcheswereintroducedintoChina;

In1981,Beijingorderedthefirstdigitalswitch;

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In1985,Ericsson'sfirstofficeinChinawasestablishedinBeijing;

In1987,China'sfirstmobilephonesystemprovidedbyEricssonwasopenedinGuangzhouandQinhuangdao;

In1990,theShanghaiInternationalExchangeBureauprovidedswitchingequipment;

In1992,thefirstjointventurecompanyofEricssoninChina-NanjingEricssonPandaCommunicationCo.,Ltd.wasestablished;

In1994,Ericsson'sfirstwholly-ownedcompanyinChina,Ericsson(China)Co.,Ltd.,wasestablishedinBeijing;

In1996,EricssonbecamethefirstcompanyinChinatofullypassISO9001qualitycertification;

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In1997,EricssonChinaAcademywasestablishedinBeijingtotrainhigh-qualitytechnicalandmanagerialtalentsforChina’scommunicationsindustry;

In2000,China’sfirstWCDMAevaluationsystemcompletedthetestandreport;

In2001,EricssoncompletedChina’sfirstWCDMAmobilephonecall;

In2002,EricssonChinaR&DCenterwasestablishedinBeijing;

In2004,Completedtheworld’sfirstlivedemonstrationofHSDPAatthe2004PT/ExpoCommexhibitioninChina;

In2005,China’sfirstlivedemonstrationofEUL(enhanceduplink)basedonWCDMAcommercialsystems,andChina’sfirstlivedemonstrationofbothcommercialequipmentandcommercialequipmentPCcardHSDPAlivedemonstrationandChina’sfirstHSDPA/EUL-basedvideoVoIPcalllivedemonstration

In2006,EricssonsupportedHongKongSmarToneVodafonetolaunchtheworld’sfirst3.6MbpsHSDPAfullcoveragenetwork;

In2007,China'sfirstLTEenhanceduplinkandsecondphaseHSPAlivedemonstration;

In2008,China'sfirstlivedemonstrationofend-to-endHSPAevolutiontechnologywithaspeedofupto42Mbps;

In2011,China’sfirstTD-LTEvoicecallandChina’sfirstHSPAevolutiontechnologyatarateof42MbpsonWCDMAlivenetworks;

In2012,EricssonsuccessfullycompletedthefirstdemonstrationinChina.ThenetworkGSMupgradesupportstheverificationoftheTD-LTEscheme;

In2012,EricssonusedcarrieraggregationtechnologytodemonstrateTD-LTEAdvancedforChinaMobile,withapeakdownloadrateof220Mbps;

2012In2015,EricssonrealizedtheLTEFDD/TDDtwo-wayseamlesshandoverinthecurrentnetworkofChinaMobileHongKongCo.,Ltd.,andfullysupportedChinaMobiletoofficiallylaunchTD-LTEinHongKongthroughLTETDD/FDDconvergednetworking.Commercialnetwork;

In2013,EricssonassistedChinaMobileHongKong'sdual-modeLTEnetworktoreproducethePakistanExhibitionanddemonstratedtheworld'sfirstdual-modehigh-definitionVOLTE.

ChinabecomesEricssonGlobalsourcingCentral

AsEricsson’sworld’slargestproductionofcommunicationsystemsAndSupplyCenter,NanjingEricssonPandaCommunicationCo.,Ltd.(ENCforshort)in2012achievedannualsalesrevenueof12.5billionyuan,exportsof5.2billionyuan,andpaid786millionnationaltaxesYuan,hasmadecontributionstothedevelopmentofJiangsu'sinformationandcommunicationindustryandlocaleconomy.During2012,EricssoncontinuedtostrengthenR&DandproductioncapabilitiesinJiangsu.Themaininvestmentdevelopmentsinclude:

(1)ContinuousinvestmentinstrengtheningthestrengthofNanjingR&Dcenter,focusingonimprovingsoftwareR&Dcapabilities.Atpresent,theNanjingR&DCenterhasstrongR&Dcapabilitiescovering2G,3G,and4Gcommunicationstandards,especiallyintermsofTD-LTEwirelessaccessnetworkandWCDMAcoreprocessors.

(2)ThenewbuildingofNanjingR&DCenterwassuccessfullydeliveredtousein2012.Thenewbuildinghasatotalconstructionareaof​​12,000squaremetersandatotalinvestmentofapproximately120millionyuan,whichprovidesasolidguaranteeforthecompanytofurtherresearchanddevelop3Gand4GLTE,expanditsexistingworld-classlaboratories,andattractmoreoutstandingtalents..

(3)Introducetheworld'sleadingproductionmodeltoachievelarge-scaleupgrades.Bycontinuouslyintroducingadvancedinstrumentsandequipment,increasingtheproductioncapacityof3Gand4G(LTEFDDandTD-LTE)communicationproducts,especiallyintroducingtheproductionmodelofEricsson’sglobalsupplychainmainfactory,ENCcontinuestoexpandthescopeandscaleofproduction,andwillManycoreproductsandkeytechnologiesofthegrouparetransferredtoNanjingformassproductionandupgrade.NanjingEricssonENCfirmlygraspsitsstrategicpositionasEricsson'sworld'slargestproductionandsupplycenter,theworld'slargestnewproductintroductioncenter,andoneofChina'simportantresearchanddevelopmentbases.Itsuppliesandexportsinnovativetechnologiestoglobalcustomers,anditsbusinesscovers6continents.

EricssonandGuangdongProvincehavemaintainedalong-termandfruitfulcooperationinthetelecommunicationsindustry.Asearlyas1985,EricssonsignedthefirstAXEcontractwiththeGuangdongProvincialPostandTelecommunicationsAdministration.In1989,theSwedishEricssonGuangzhouLiaisonOfficewasestablished,andtheEricsson(China)Co.,Ltd.GuangzhouBranchwasestablishedin1995.

InDecember2010,EricssonannouncedtheacquisitionoftheassetsofGuangdongNortelCommunicationEquipmentCo.,Ltd.(GDNT).GDNTisaleadingR&DandmanufacturingcompanyinChina.AfterEricssonacquiredNortel'sCDMAandGSMbusinesses,ithasnowbecomeanimportantsupplierofEricsson.GDNTwasestablishedin1995asajointventureestablishedbyNortelNetworksLimitedinCanada,localChinesecompaniesandtelecomoperators.Theacquisitionalsoincludesresearchanddevelopmentfacilities,manufacturingfacilities,andnetworksupportandcustomerserviceinChina.GDNThasapproximately1,100employees,includingapproximately550R&Dengineers,incorporatedintoEricsson.ThisacquisitionfurtherenhancesEricsson'sexistingR&D,manufacturingandservicecapabilitiesthroughouttheregion.

In2005,EricssonrespondedtothecalloftheGuangdongProvincialGovernmenttopromotethe"informatization"constructionofmountainousareas,andjointlyplannedwithGuangdongMobileCommunicationsCo.,Ltd.,andputforwardsuggestionsforcooperationinthedevelopmentofmountainousareainformatizationpilotconstructioninMeizhouCity.Tothisend,10millionyuanwasinvestedtoimprovethecommunicationinfrastructureconditionsinthemountainousareasofMeizhouCity,Guangdong.Sofar,ithassuccessfullycompletedtheruralinformatizationproject,theprimaryandsecondaryschoolelectronicclassroomproject,thegovernmentvideoconferencesystemproject,thereservoirwaterconservancyintegratedinformationsystemandtheTheconstructionofthemobilepolicesystemhasstronglypromotedthelocalsocialandeconomicdevelopment.

In2010,EricssonestablishedaglobalservicecenterbranchinDalian.Aftermorethantwoyearsofcontinuousconstruction,DalianhasbecomethemainbaseofEricssonGlobalServiceCenterinChina.Withtheworld’sleadingprofessionaltrainingandpractice,theserviceskillsandlevelofthecenter’sprofessionalshavebeencontinuouslyimproved,andbyparticipatingintheconstructionofcommunicationnetworksaroundtheworld,thecentercontinuestointroducethemostadvancedcommunicationtechnologyandintellectualresourcesintothecenter,anditcontinuestogrowinitself.Atthesametime,itcontributestothedevelopmentoflocaltalentsandtechnologicalprogressinDalian.

Corporateculture

Trainingdoesnotdistinguishbetweenrecruitsandveterans

Accordingtoasurvey,thetrainingcostsofgeneralmultinationalcompaniesaretheirbusiness2%to5%ofincome.AndEricsson'straininginvestmentisattheforefrontofthesemultinationalcompanies.AtEricsson,employeeswhoreceivetrainingarenotdividedinto“newandold”,butaredividedintomanagersandprofessionalsbasedontheirpositions.Professionalsaredividedintotwocategories:technicalstaffandfunctionalstaff.Technicalstaffaregenerallypre-salesandafter-salesengineersandR&Dengineers,andfunctionaldepartmentstaffaregenerallyfinancialaccounting,administrativesecretarial,personnelandotherstaff.Ericssonalsodividestheseemployeesintotheteamofprofessionalstaff.Ofcourse,thereare"novices"and"veterans"amongtheseemployees,butthetrainingisnotdividedbythisstandard.Beforetraining,thereisonlythedifferencebetween"communicationsoldiers"and"tanksoldiers",andthereisnodistinctionbetween"recruitsandveterans".

Understandingotherpeople'swork

Ericsson’strainingismoreinmanagementskills,notjustinprofessionaltechnology.Thetrainingisroughlydividedintothreeorfourlevels.Thelowestlevelisbasicskillstraining.Theso-calledbasicskillstrainingismainlytocultivatethelearningabilityofemployees.Thecontentincludescommunicationskills,creativityandproblem-solvingskills,andbasicknowledge.Basicknowledgeisnotonlylimitedtothescopeofwork,butalsoincludesthebasiccontentofbusinessoperations.Forexample,insomecompanies,technicalpersonneldonotneedtounderstandtheknowledgeoffinanceandbusinessoperations,whileinEricsson,everyemployeewhoreceivesbasicskillstraininghasthiscourse.InEricsson'sview,techniciansalsohavetoknow"wheredoesthecompany'smoneycomefrom."Ericssonrequirescomprehensiveknowledgeofemployeesforthepurposeofunderstandingtheworkprocessandsupportingtheworkofothers.

Understandmeintheeyesofothers

Ericsson’sbasicskillstrainingisapplicabletoallemployees.Onthisbasis,itisprofessionaltrainingtoimproveprofessionalability.Thetrainingaboveisleadershiptraining.Ofcourse,therewillbesomecoveragebetweenthetwo.Leadershiptrainingusuallyhastwopurposes:oneistousethemtostrengthenthecompany’scorporatecultureandenablethecompany’sstrategicdecisionstobeeffectivelycommunicated,andtheotheristoletthemlearnmoreabouttheirownpersonalityandformleadersthat“match”it.Styleandleadershipskills,soastomaximizethestrengthsandavoidweaknessestoimproveleadershipability.

Honorsreceived

OnJuly19,2018,theFortuneGlobal500listof2018wasreleased,andEricssonranked500th.

2019ForbesGlobal100DigitalEconomyRankingisranked96th.

OnMay13,2020,Ericssonranked704thonthe2020ForbesGlobal2000list.

InMay2021,Ericssonranked293rdinthe"2021ForbesGlobal2000".

Prosecutionincident

ProsecutionagainstZTE

InApril2011,EricssonfiledalawsuitagainstZTEintheUK,Italy,andGermanyatthesametime,claimingthatZTEviolatedEricsson.PartoftheGSM/WCDMApatents,inadditiontoclaimingcompensation,alsorequirethethreeplacestobanthesalesofZTEmobilephones.ZTEalsorespondedtothisincident,sayingthatEricssonwas"patentintimidation."

SueSamsung

ThepatentlicenseagreementbetweenSamsungandEricssonexpiredin2012.Afternearlytwoyearsofnegotiations,SamsungrefusedtosignthepatentlicenseagreementunderFRANDterms,Thenegotiationbetweenthetwopartiesendedinfailure.

OnNovember27,2012,EricssonfiledapatentlawsuitagainstSamsungintheEasternDistrictCourtofTexas,accusingSamsungofinfringingitspatentsonmobilecommunicationstechnology.Samsunghasnoofficialresponsetothis,andrespondedinsilence.

Ericsson:"Asalastresort"filedalawsuit

ThedisputebetweenEricssonandSamsunginvolvesanumberofpatentsthatareimportanttotelecommunicationstechnologyandnetworkstandardsownedbyEricssonusedinSamsungproducts,AndotherEricssonpatentedinventionscommonlyusedinwirelessandconsumerelectronicsproducts.

In2001,SamsunghadobtainedthepatentlicensefromEricsson,andin2007thetwopartiesagreedtorenewtheglobalpatentcross-licensingagreement.Later,thispatentlicensehasexpired."EricssonandSamsung’stopmanagementhavebeennegotiatingfornearlytwoyears,butSamsungstillrefusestorenewthelicenseagreementforthetelecommunicationspatentportfoliobetweenEricssonandEricsson."

TheseniorEricssonsaidthatSamsungrefused.RenewthispatentlicenseagreementinaccordancewithFRAND(theprinciplesoffairness,reasonablenessandnon-discrimination)."Legallitigationisourlastmove."EricssonfiledalawsuitintheDistrictCourtofEasternTexas.AndhereiswheretheheadquartersofEricssonAmericaislocated."TheUnitedStatesisanimportantmarketandhasamaturepatentlegalsystem."Ericssoninsidersadmittedfrankly.

PatentedtechnologyisEricsson'sstrongfield

Ericssonholdsalargenumberofmobilecommunicationpatents.In2011,EricssoninitiatedpatentinfringementlawsuitsagainstZTEintheUnitedKingdom,ItalyandGermany.Thetwopartiesfinallyreconciliation.Ericssonhassignedmorethan100licenseagreementswithmajorcommunicationequipmentmanufacturersintheindustry.In2011,Ericssoninvested32.6billionkronor(about5billionUSdollars)inresearchanddevelopment.

OnJanuary27,2014,EricssonannouncedthatithadreachedasettlementwithSouthKorea’sSamsungGroup.ThelatteragreedtopayUS$650millionplusseveralyearsofroyaltiestosettlethetechnologylicensingdisputebetweenthetwoparties.

SueApple

OnFebruary27,2015localtime,EricssonstatedthatitwouldsueAppleforinfringingon41ofitspatents,andthesepatentsarecriticaltomanyaspectsofApple’sdevicesimportant.EricssonsaidthatApplehadpreviouslyrefusedtoreachalicensingagreementandrejectedtheproposaltoletthecourtdeterminethefairlicensingtermsthatbothpartiesmustabideby.Therefore,EricssonhasfiledtwolawsuitswiththeU.S.InternationalTradeCommissionandfiledwiththeU.S.DistrictCourtfortheEasternDistrictofTexas.Sevenlawsuits.

Thepatentindisputeisrelatedtothestandardsandcharacteristicsofthe4Glong-termevolutiontechnology.Ericssonsaidthatthepurposeoftakingthislegalactionistoobtainanexpulsionorder,compensationandinjunctionagainstAppleproducts.Applehasnotyetcommentedonthematter.

Swedenreorganization

OnNovember7,2012,EricssoninformeditsSwedishemployeesthatthecompanyplanstoreduceitsoperationsinSweden,includingthereductionofapproximately1,550positionstocoverallareasofwork.Includingsales,administrativemanagement,researchanddevelopment,supplyandservicedelivery,etc.

Acquisitionevents

Sony’sacquisitionofEricsson’smobilephonebusiness

OnOctober27,2011,Sonyacquired1.05billioneurosEricssonholds50%ofSonyEricsson'sshares,andSonyEricsson,amobilephonebrand,willbecomeawholly-ownedsubsidiaryofSony.WiththeacquisitionofSony,thecommunicationsgiantEricssonwillalsoformallyandcompletelywithdrawfromthemobileterminalmarket.

Sony’s"rapidintegration"ofSonyEricssonintothecompany’srichproductlinewillnotonlybenefitconsumers,butwillalsopromoteSony’sbusinessgrowth.Thetransactionbrings5​​importantpatentsrelatedtomobilephonetechnologytoSony.ThecompanywillmakefulluseofitsaccumulatedITresourcesinthefieldsofcomputersandgamestocontinuetoexertitsadvantagesinthesmartphonemarket.

OnOctober28,2011,thetransactionwasapprovedbybothpartiesandisexpectedtobecompletedinJanuary2012.Afterthetransactionwascompleted,Ericssoncompletely"brokenup"withSonyEricsson.

SonycompletedthecompleteacquisitionofSonyEricsson

SonyrenamedthecompanySonyMobileCommunicationsandacceleratedbusinessintegration.

February15,2012,Tokyo—SonyCorporationannouncedthatSony’sacquisitionof50%ofthesharesinSonyEricssonheldbyEricssonhasbeencompletedonFebruary15,2012(CentralEuropeanTime).AftertheacquisitionplanjointlyannouncedbySonyandEricssononOctober27,2011wascompleted,SonyEricssonbecameawholly-ownedsubsidiaryofSony.Sonychangedthenameof"SonyEricsson"to"SonyMobileCommunications"andfurtherintegratedthemobilephonebusinessasanimportantpartoftheelectronicbusiness.Withthismove,Sonywillacceleratetheintegrationofitsnetworkedconsumerelectronicsproductline,includingsmartphones,tablets,smartTVsandpersonalcomputers.

AcquisitionofBritishMedia

OnJuly1,2013,Beijingtime,EricssonannouncedthatitagreedtoacquiretheBritishmediaservicecompanyRedBeeMedia(hereinafterreferredtoas"RedBeeMedia").").Throughthisacquisition,Ericsson'sserviceswillbeextendedtothebroadcastingfield.

MagnusMandersson,executivevicepresidentofEricsson’sglobalservicesbusiness,said,“Bycreatingmoreconnectabledigitalcontent,wecancreatevalueforbroadcastersandenableTVContentmonetizationismoreeffective.Videotrafficshowsthatmobilenetworkshavehugeroomforgrowth.Ericssonwilluseitsowntechnicalexperienceandservicecapabilitiestomeettheneedsofbroadcastersandtelecomoperators."

2013OnJuly1,2005,Ericsson'ssharepricerose0.8%ontheStockholmStockExchange,anditssharepricewas76.55SwedishKrona.Since2013,Ericsson'sstockpricehasrisenby17%,withamarketcapitalizationofSEK251billion(approximatelyUS$37.7billion).

Layoffs

EricssonannouncedonMarch11,2015thataspartofa9billionSwedishkronor(approximatelyUS$1.1billion)costreductionplan,thecompanywilllayoff2,200employeesinSweden.

EricssonsaidthattheR&Dpersonnelandsupplypersonnelmostaffectedbythelayoffs.EricssonannouncedinNovember2014thatitplanstoacceleratethecostreductionplanthroughlayoffsandothermethods,hopingtosave9billionSwedishkronor.

Ericssonsaidatthetimethatthiscostreductionplanwillbeachievedthroughaseriesofprojects,includingsimplifyingthecompany'sproductportfolioandsupplychain,reducingmanagementcosts,andabolishingsomepositions.Asoftheendof2013,thetotalnumberofEricssonemployeeswas114,000.

Briberyincident

OnDecember7,2019,Ericssonadmittedthatthecompanyhadcommittedbriberyinmanycountriesinthepast17years.ThishasreachedasettlementwiththeU.S.prosecutorsandhandedovertothelatterasettlementofmorethan$1billion.TheUSinvestigationofEricssonhasstartedsince2013.TheEuropeancompanyhadalsoexpectedtosignhighfines,soitmadeareserveinthethirdquarterofthisyear.InviewofthispaymentoffineswilloccurinDecember,Ericssonsaidthecompany'scashflowinthefourthquarterwillbe"controllableimpact."

TheUSDepartmentofJusticereleasedadocumentonDecember7,2019,showingthatfrom2000to2016,Ericsson’scommercialactivitiesinVietnamandother5countriesweresuspectedofviolatingtheUSForeignCorruptPracticesAct(FCPA).Thecompanyusedthirdpartiestobribegovernmentofficialsofothercountriesandfalsifyaccountbookstomaintainbusinessgrowth.

TheUSSecuritiesandExchangeCommissionandtheDepartmentofJusticelaunchedinvestigationsintoEricssonin2013and2015,respectively.Ontheotherhand,Ericssonalsofired50employeesinMay2018,suspectedofrespondingtopressurefromtheUSprosecutors.AccordingtoUSlaw,ifEricsson'sUSprosecutorsprosecuteandconvict,theywillfaceseveresanctionssuchas"licenserevocation".ButEricssonandtheU.S.prosecutorsfinallyendedtheinvestigationinasettlement.Tothisend,EricssonwillpayasettlementofUS$979million,plusUS$81.5millionintaxes,andatotalfineofUS$1.0605billion.

OnMay12,2021,EricssonstatedthatithadreachedasettlementagreementwithFinnishNokiaandpaid80millioneuros(approximatelyUS$97million)incompensationtothelatter.Thesettlementwillhaveanimpactof80millioneurosonitsoperatingprofitinthesecondquarterandanimpactof26millioneurosonitscashflow.