STOCKHOLM, Aug. 10, 2018 /PRNewswire/ -- To support the
accelerated build out of 5G in the United
States, Ericsson (NASDAQ: ERIC) will increase its investment
in the market. This series of strategic initiatives will allow
Ericsson to operate even closer to its customers, meeting the
growing demand for 5G globally and in the region.
The investments will fall into two categories: 1) increase
research and development work done close to customers in the US and
2) increase flexibility to shorten the timeline for new product
introduction and product delivery to customers. This will enable
Ericsson to recruit new expertise from the US, complementing the
company's existing highly-skilled employees in the region.
Börje Ekholm, President and CEO of Ericsson, says: "The United States is our largest market,
accounting for a quarter of Ericsson's business over the last seven
years. To serve the demand of these fast-moving service providers,
we are strengthening our investment in the US to be even closer to
our customers and meet their accelerated 5G deployment plans."
Ericsson predicts that 5G subscriptions will reach the 150
million-mark, accounting for 48 percent of all mobile subscriptions
in North America by the end of
2023. (Ericsson Mobility Report, June
2018)
Increase R&D in the US
In late 2017, Ericsson opened the Austin ASIC Design Center in
Austin, Texas, to focus on core
microelectronics of 5G radio base stations to accelerate the path
to 5G commercialization. The 1,400-square-meter facility
(15,000-square-feet) will have 80 employees once fully staffed.
Ericsson will also open a new software development center with
baseband focus in 2018, employing more than 200 software engineers
once fully operational. This facility and its employees will
further strengthen Ericsson's 5G software development. Baseband
provides intelligence to the radio access network. It is also the
interface between the core network and radio units, processing and
forwarding voice calls and internet data to end users.
Beginning in 2019, both of these facilities will introduce 5G
products and software features into the Ericsson portfolio, and
will be available for customers globally, including in the US.
Additionally, Ericsson will increase its investment in
Artificial Intelligence (AI) and automation, employing around 100
specialists in North America by
the end of 2018. This team will work on utilizing AI technologies
to accelerate automation, examine product road maps and explore new
business opportunities. They will focus on boosting the company's
current portfolio, strengthening customer engagements and promote
innovation of new disruptive business opportunities.
New product introduction and manufacturing in the US
To increase flexibility in bringing new products into the
market, Ericsson will recruit a dedicated team to work specifically
on introducing products for the US market, conducting production
engineering, testing/integration and supply preparations on early
prototypes. This will be done in close collaboration with US-based
R&D resources.
To make 5G products available to customers as fast as possible,
Ericsson will also begin manufacturing in the US in the fourth
quarter of 2018. This will enable Ericsson to operate closer to
customers -- providing volume production of next-generation radios
and the fast introduction of new products into the US market.
Initially, Ericsson will work with a production partner and the
first radios for the US will be produced before the end of
2018.
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ABOUT ERICSSON
Ericsson enables communications service providers to capture the
full value of connectivity. The company's portfolio spans Networks,
Digital Services, Managed Services, and Emerging Business and is
designed to help our customers go digital, increase efficiency and
find new revenue streams. Ericsson's investments in innovation have
delivered the benefits of telephony and mobile broadband to
billions of people around the world. The Ericsson stock is listed
on Nasdaq Stockholm and on Nasdaq New York. www.ericsson.com
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Ericsson increasing
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Investments in
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SOURCE Ericsson