ERIC Ericsson

By Matthias Verbergt 

STOCKHOLM-- Ericsson AB appointed Börje Ekholm as its new chief executive, the Swedish telecom-equipment provider said Wednesday, as it battles waning demand for its products.

Mr. Ekholm joins Ericsson from his current position as CEO of Patricia Industries, a division within Investor, a Swedish investment company that is one of Ericsson's biggest shareholders. From 2005 to 2015, Mr. Ekholm was CEO of Investor.

Ericsson had been looking for a new CEO since it ousted Hans Vestberg in July, as the company is battling slowing demand for its cellphone towers and switches and faces fresh competitive threats from China's Huawei Technologies Co. and Nordic rival Nokia Corp.

Last week, Ericsson plunged to a third-quarter loss, hit by fierce competition and a slowdown in spending by mobile-service providers on latest-generation, or 4G, networks, as many mobile-broadband projects were completed last year.

Ericsson is betting big on the development of the next generation of wireless networks, or 5G, but the large-scale rollout of 5G networks won't happen before 2020, analysts say.

Mr. Ekholm "has a solid understanding of both the technology and business implications of the ongoing convergence of telecoms, IT and media," said Leif Johansson, chairman of Ericsson's board of directors.

"As the networks and applications become even more important in a 5G connected world, our customers, and the industry, look for continuous innovation," Mr. Ekholm said in a statement.

Mr. Ekholm, 53 years old and a member of Ericsson's board over the past 10 years, will replace acting CEO Jan Frykhammar on Jan. 16, 2017.

Write to Matthias Verbergt at Matthias.Verbergt@wsj.com

(END) Dow Jones Newswires

October 26, 2016 03:33 ET (07:33 GMT)

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