Swedish telecommunications manufacturer Ericsson AB expands its presence in the Russian market, covering a segment that Huawei and ZTE failed to cater, as Moscow found in the Chinese manufacturer gaping security holes and chose to purchase Swede 5G technology despite the 30% markup. Swedish service provider Ericsson AB provided Russian telecommunications company Tele2 25.000 5G base stations in Russia for an 18-month contract. The Russian Federation actively conducts a five-year plan for the modernization of their networks.
After reaching an agreement in 2019 with the Russians in Spain, Ericsson implemented Moscow’s first 5G zone in August last year. The pilot 5G network in the Russian capital has been successful, 5G-ready devices in Russia are popular and drive a lot of demand from European Union markets. Ericsson’s infrastructure, which counts with an R&D innovation hub in Moscow, coupled with Tele2’s subscriber base, allowed the telecommunications technology’s seamless integration.
Ericsson AB’s Moscow-based R&D hub serves a seeder for future innovation, training over 1000 Russian students on networks and telecommunications. Tele2 isn’t the only operator whose commercial deals with the Swedish-manufacturer in Russia. MTS, the largest telecommunications provider in Russia, decided to engage in a massive network modernization of their GSM/4G infrastructure in central Russia, this opportunity will allow Ericsson the means to deploy a series of 5G networks that will modernize that country’s telecommunications while also bolstering Ericsson’s manufacturing capacity.
Ericsson Domination Begins
These sorts of commercial telecommunication arrangements will benefit Ericsson’s presence in the 5G market worldwide. Ericsson’s PR representatives can claim that their company caught the eye of the Russian Federation’s attempts at modernization in detriment of Chinese competitors. The latter offers goods and services to the Asian, African, Middle East, and European markets at a lower price. The MTS deal for Ericsson requires the implementation of modernization solutions for several thousand sites across the vast territory of central Russia. This endeavor has a deadline six years from now.
Ericsson boasts a record of transparency despite being far behind its Chinese counterparts, and the Swedish company has one hundred commercial agreements or contracts with telecommunications providers worldwide, the latest in Slovenia with a major phone provider. Ericsson’s plans for 5G penetration have them lobbying service providers, universities, technology institutes, and manufacturers into acquiring their goods and services as a healthy, US-approved alternative for the demand for faster mobile phone networks.
Some of Ericsson’s clientele include AT&T, LG Uplus, NTT DoCoMo, SK Telecom, Sprint, O2, Verizon, T-Mobile US, Vodafone Italy, and Zain Saudi Arabia.
American Interest Touches European 5G Manufacturers
5G is one of the sectors in technologies where US absence is notorious. American authorities consider that the US should invest in Finnish or Swede 5G technology directly or through US companies, a recommendation that California-based network equipment manufacturer Cisco Systems wants to explore, as that company has the support of American authorities surrounding a copyright theft issue with Huawei.
Budgetary issues are one of the central problems for the takeoff of European 5G technologies, Nokia and Ericsson can’t afford to roll out the spectacular array of devices that their Chinese counterparts do. For one part, Nokia still tries to figure out what to do after their Lucent-Alcatel acquisition, and Ericsson has to cater to the massive demands of the Russian market in its quest for modernization. While these two companies face their problems, the push for tech supremacy worldwide continues.