Ericsson Names New CEO Amid Dwindling Demand -- Update
October 26 2016 - 3:48AM
Dow Jones News
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)
Copyright (c) 2016 Dow Jones & Company, Inc.
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