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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 - Recent News
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 - Future Plans
Ericsson - FAQs
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 offers 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, adopt, 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 clearly rendered on digital screens.
Ericsson - Founder and History
Ericsson was founded by Lars Magnus Ericsson in 1876.
The company was established as a workshop to repair telegraph instruments 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 own 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 their innovations and ICT solutions, the company helps transform industries and create a world of new possibilities.
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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 - Recent News
- MTS to Launch Russia’s First Commercial Private 5G Network with Ericsson Equipment
- Ericsson Selected as BT’s 5G Partner for London and Major UK Cities
- Ericsson's 2020 Microwave Outlook Report Addresses Steps to Enhance 5G Deployment
- Airtel Extends Contract with Ericsson to Deploy 5G-Ready Radio Network
- Ericsson and China Telecom Conduct 5G Standalone Data Call with Spectrum Sharing
Ericsson - Joint Venture with Sony
Sony Ericsson got in 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 provides them more reliable and innovative products. This is also the main reason of failure of joint venture of Sony Ericsson.
They were providing innovative products but marketing strategy was not as much effective that they could attract customers.
They were not providing the advanced versions of mobiles as much 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 proactive approach, they were also not productive 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.
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Ericsson - Revenue and Growth
Ericsson said its revenue dropped 2 percent to SEK 49.8 billion in Q1 2020 as compared with 48.9 billion in Q1 2019.
| Year | Amount | Percentage Change from last year |
|---|---|---|
| 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 18 investments. Their most recent investment was on Apr 9, 2019, when PubNub raised $23M.
| Date | Organization Name | Round | Amount |
|---|---|---|---|
| Apr 9, 2019 | PubNub | Series D | Series D |
| 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 38 organizations. Their most recent acquisition was Cradlepoint on Sep 17, 2020. They acquired Cradlepoint for $1.1B.
| Acquiree Name | Date | Amount | About Acquiree |
|---|---|---|---|
| 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.
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 limited impact on operating income and cash flow in the quarter. Gross margin excluding restructuring charges improved to 40.4 percent (38.5 percent).
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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 opeartors AT&T, China Mobil, Deutche Telecom, Korea Telecom, Turkcell, TeliaSonera, Verizon, and Vodafone 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 what 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 on 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.
Ericsson - 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 is the CEO of Ericsson?
Börje Ekholm is the CEO of Ericsson.
How does Ericsson make money?
The company operates three reportable business segments: Networks, Global Services and Support Solutions.
Who are Ericsson's competitors?
Ericsson's top competitors include Amdocs, Infosys, Cisco, ZTE, Huawei and Nokia.
