Key Stats
LM Ericsson Telefon AB stands as a global telecommunications equipment provider serving mobile and fixed network operators worldwide. The Swedish multinational delivers comprehensive solutions through three primary segments covering networks infrastructure, global services, and software solutions for telecommunications operators.
The company produces radio access equipment, switching systems, transmission solutions, and network management tools supporting modern telecommunications networks. Ericsson’s offerings span mobile technologies, fiber and copper access, IP core networks, and microwave transmission systems deployed across continents.
With over 100,000 employees globally, Ericsson maintains operations across numerous countries while pioneering telecommunications innovations since 1876. The Stockholm-based company continues developing next-generation wireless technologies, managed services, and software platforms that enable modern communication networks worldwide.
Ericsson History
Ericsson Co-founders
Ericsson Revenue
Ericsson generates revenue through telecommunications equipment sales, network services, and software solutions sold to mobile and fixed network operators globally. The company’s diversified revenue streams span hardware infrastructure, professional services, and technology licensing across international markets.
Ericsson Acquisitions
Ericsson has pursued strategic acquisitions to expand technological capabilities and geographic presence throughout its history. The company’s acquisition strategy emphasizes strengthening core telecommunications infrastructure while adding complementary technologies and market access through targeted purchases of specialized firms.
The 2005 acquisition of Marconi Company represented a major consolidation move, bringing the historic British telecommunications manufacturer under Ericsson control. This purchase provided established European customer relationships and manufacturing capabilities while adding the prestigious Marconi brand name to Ericsson’s portfolio during a period of telecommunications industry restructuring.
Following Nortel’s bankruptcy, Ericsson executed multiple acquisitions of Nortel assets between 2009 and 2011. The 2009 purchase of Nortel’s CDMA2000 and LTE business for $1.18 billion provided critical next-generation wireless technology capabilities. Subsequent acquisitions included Nortel’s GSM business in North America, the LG-Nortel joint venture providing South Korean operations, and Guangdong Nortel facilities offering Chinese manufacturing capacity.
Software and services acquisitions expanded Ericsson beyond hardware equipment. The 2007 purchase of Redback Networks added carrier edge-router technology, while Entrisphere brought fiber-access capabilities. In 2008, Ericsson acquired Tandberg Television to enter broadcast technology markets. The 2012 Telcordia Technologies acquisition for approximately $1.15 billion strengthened operations and business support systems offerings, addressing operator needs for network management software.
Media technology acquisitions positioned Ericsson in emerging markets. The 2013 purchase of Microsoft’s Mediaroom business made Ericsson the largest IPTV provider globally by market share. The 2014 acquisition of Red Bee Media added broadcast services capabilities. These transactions reflected telecommunications convergence with media delivery as operators expanded beyond traditional voice and data services.
Ericsson’s acquisition approach focused on technological capabilities rather than scale, contrasting with competitors like Nokia and Huawei pursuing different growth strategies. The company targeted distressed assets during industry downturns, exemplified by Nortel purchases, acquiring valuable technology at favorable valuations. This disciplined approach avoided overpaying while building comprehensive telecommunications infrastructure portfolios.
Strategic divestitures complemented acquisitions, including the 2006 sale of microwave systems operations to Saab and the 2008 enterprise PBX sale to Aastra Technologies. These transactions allowed Ericsson to concentrate resources on core telecommunications infrastructure markets while exiting lower-priority business segments that no longer aligned with corporate strategy.
Ericsson Competitors
Ericsson competes with global telecommunications equipment manufacturers and network infrastructure providers across mobile and fixed network markets. The competitive landscape includes established technology companies and emerging vendors targeting similar operator customers worldwide.
| Company | Headquarters | Primary Focus |
|---|---|---|
| Nokia | Espoo, Finland | Network Infrastructure |
| Huawei | Shenzhen, China | Telecommunications Equipment |
| Samsung | Seoul, South Korea | Network Solutions |
| Cisco Systems | San Jose, California | Networking Equipment |
| ZTE Corporation | Shenzhen, China | Telecommunications |
| Juniper Networks | Sunnyvale, California | Network Infrastructure |
| Ciena Corporation | Hanover, Maryland | Network Systems |
| NEC Corporation | Tokyo, Japan | IT & Network Solutions |
| Fujitsu | Tokyo, Japan | Technology Services |
| Mavenir | Richardson, Texas | Cloud-Native Software |
Ericsson Marketcap
Ericsson trades publicly on Nasdaq Stockholm as a listed company. The telecommunications equipment manufacturer’s market capitalization reflects investor valuations of its network infrastructure business, services operations, and technology portfolio across global telecommunications markets.
FAQs
When was Ericsson founded?
Ericsson was founded in 1876 by Lars Magnus Ericsson in Stockholm, Sweden. He established a telegraph repair shop before beginning telephone manufacturing in 1878, creating the foundation for the modern telecommunications company.
What does Ericsson manufacture?
Ericsson manufactures telecommunications equipment including radio access systems, switching equipment, transmission solutions, and network management tools. The company provides infrastructure for mobile and fixed networks serving telecommunications operators globally.
Who owns Ericsson today?
Ericsson is a publicly-traded company listed on Nasdaq Stockholm. The Wallenberg family maintains significant influence through investment vehicles, continuing a relationship established when they rescued the company from bankruptcy in 1932.
What happened to Sony Ericsson?
Sony Ericsson operated as a mobile phone joint venture from 2001 to 2012. Sony purchased Ericsson’s share in 2012, allowing Ericsson to focus exclusively on telecommunications infrastructure while Sony continued the mobile handset business.
Where is Ericsson headquarters located?
Ericsson headquarters is located in Stockholm, Sweden, where Lars Magnus Ericsson founded the original company in 1876. The telecommunications manufacturer maintains this Swedish base while operating facilities across numerous countries globally.