Money Buzz! Europa

Tag: ericsson

  • Ericsson brings 5G to Greece with WIND Hellas

    Ericsson brings 5G to Greece with WIND Hellas

    Ericsson has been selected by WIND Hellas as its mobile core network vendor for standalone and non-standalone 5G, as well as its BSS partner.

    Ericsson dual-mode 5G Core will allow WIND Hellas to meet customer’s increasing demand for data as well as pursue new opportunities in emerging enterprise segments supported by enhanced capabilities such as network slicing.

    Nassos Zarkalis, Chairman and CEO of WIND Hellas, says: ”We are excited about the collaboration with Ericsson for the country’s 5G network modernization. Our ambitious undertaking is to build a state of the art, secure 5G core network that will create new possibilities for Greece and create value to society at large, businesses, and our customers, by delivering enhanced high-speed services and compelling experiences”.

  • More than 1 billion people will have access to 5G coverage this year

    More than 1 billion people will have access to 5G coverage this year

    Ericsson Mobility Report estimates that by the end of this year, more than 1 billion people, 15 percent of the world’s population, will live in an area that has 5G coverage.

    In 2026, 60 percent of the world’s population will have access to 5G coverage, with 5G subscriptions forecast to reach 3.5 billion.

    Ericsson has raised its year-end 2020 estimate for global 5G subscriptions to 220 million, as service providers continue to build out their networks.

    The increase is largely due to rapid uptake in China, reaching 11 percent of its mobile subscription base. This is driven by a national strategic focus, intense competition between service providers, as well as increasingly affordable 5G smartphones from several vendors.

    North America is expected to end the year with about 4 percent of its mobile subscriptions being 5G. Commercialization is now moving at a rapid pace and by 2026, Ericsson forecasts that 80 percent of North American mobile subscriptions will be 5G, the highest level of any region in the world.

    Europe will end the year with about 1 percent 5G subscriptions in the region. During the year, some countries delayed auctions of the radio spectrum needed to support 5G deployment.

  • Ericsson completes acquisition of Cradlepoint

    Ericsson completes acquisition of Cradlepoint

    Ericsson has completed thw acquisition of Cradlepoint, the US-based market leader in Wireless WAN Edge 4G and 5G solutions for the enterprise market.

    The investment is key to Ericsson’s ongoing strategy of capturing market share in the rapidly expanding 5G enterprise space.

    Closing of the acquisition follows the announcement on September 18, 2020 of Ericsson’s intention to acquire Cradlepoint. At closing, a consideration of around USD 1 b. was paid using Ericsson’s cash-in-hand.

    Cradlepoint’s sales for 2019 were SEK 1.2 b. with a gross margin of 61%.

    Ericsson’s operating margins are expected to be negatively impacted by approximately 1% in 2021 and 2022 – where half is related to amortization of intangible assets arising from the acquisition.

    Cradlepoint is expected to contribute to operating cash-flow starting in 2022.

    Through Cradlepoint’s solutions, companies can connect sites, vehicles, mobile workforces, and IoT devices in a simple and secure way using cellular technology.

    Cradlepoint will operate as a stand-alone subsidiary within Ericsson and continue to build on the current market momentum as 5G is speeding up digital transformation and increasing the need for advanced connectivity services for enterprises.

    Cradlepoint will continue to be headquartered in Boise, Idaho, USA. In addition to the company headquarters, Cradlepoint operates a research and development center in Silicon Valley, California, and international offices in the United Kingdom and Australia.

  • Telekom Slovenije and Ericsson launched the first 5G commercial network in Slovenia

    Telekom Slovenije and Ericsson launched the first 5G commercial network in Slovenia

    Ericsson and Slovenian communications service provider, Telekom Slovenije, launched the first commercial 5G network in Slovenia on July 23, 2020.

    The 5G rollout commenced within a week of the July 16th contract signing.

    The new 5G services were switched on through a software installation to existing Ericsson Radio System and Packet Core equipment which will enable spectrum sharing between 4G and 5G on the 2600MHz FDD spectrum – traditionally used for 4G only.

    Under the terms of the 5G deal, Ericsson is supplying Telekom Slovenije with RAN and Packet Core solutions.

    Initial 5G services are available in major cities across Slovenia, covering an estimated 25 percent of the population.

    The Slovenian communications service provider aims to increase its 5G coverage to 33 percent of the population by end of 2020.

  • Ericsson reports second quarter results. Sales at SEK 55.6 billion

    Ericsson reports second quarter results. Sales at SEK 55.6 billion

    Ericsson report show that sales were SEK 55.6 (54.8) b. Sales adjusted for comparable units and currency were flat YoY.

    Gross margin excluding restructuring charges improved to 38.2% (36.7%), including the earlier communicated inventory write-down related to Mainland China (SEK -0.9 b., which equals to -1.6 percentage points).           

    Operating income excluding restructuring charges improved to SEK 4.5 b. (8.2% operating margin) from SEK 3.9 b. (7.0% operating margin) driven by improvements in segment Digital Services.            

    Networks sales increased by 4% YoY. Networks operating margin excluding restructuring charges  was 14.1% (15.0%) impacted by strategic contracts and the inventory write-down, partly compensated by operational leverage and a favorable business mix.            

    Digital Services operating income excluding restructuring charges was SEK -0.7 (-1.3) b. Gross margin improved driven mainly by higher software sales while sales declined by -5%.            

    Net income was SEK 2.6 (1.8) b. Free cash flow before M&A was SEK 3.2 (1.6) b. Net cash June 30, 2020, was SEK 37.5 (33.8) b.           

    The Covid-19 pandemic had a limited impact on operating income and cash flow in the quarter.