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Sweden’s Ericsson is getting ready to face new US-backed telecoms gear challengers
- The prospect of a new rival could be a blow to Ericsson, which has made a successful turnaround under CEO Borje Ekholm
- The US government’s global campaign against Huawei opened the opportunity for Ericsson and Nokia to expand in Western markets
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Swedish telecommunications equipment giant Ericsson says the virtual duopoly it is enjoying in some Western markets since the exclusion of Huawei Technologies Co will not last forever.
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Ericsson and Finland’s Nokia are thriving in markets, including the US and the UK, since their powerful Chinese competitor was barred from 5G wireless supply deals worth tens of billions of dollars.
The US government, whose global campaign against Huawei opened that opportunity for the two Nordic vendors, will probably create new competitors, according to Ericsson chief executive Borje Ekholm.
“We understand the need for more vendor choice, and it is likely that there will be something with an American component,” Ekholm said in an interview.
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The executive said he needs to be prepared for new rivals to emerge, given the known ambitions of mobile network operators and governments seeking to boost home-grown alternatives.
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