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Ericsson signs $8.3 billion contracts to supply 5G equipment to US carriers

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Sweden’s Ericsson telecommunications group announced that it has signed a contract worth $8.3 billion to supply 5G network equipment to the US carrier Verizon, the largest contract ever.

Ericsson also said its net profit in the second quarter of 2021 increased 51% to 3.9 billion kronor ($450 million). However, Ericsson’s sales fell 1% to 54.9 billion kronor, mainly due to a 2.5 billion kronor drop in sales in China, after rival Huawei was banned from selling equipment in Sweden.

Ericsson CEO Borje Ekholm said that the decision to ban Huawei from supplying equipment for 5G networks in Sweden could affect Ericsson’s market share in mainland China.

Ericsson is competing with Huawei and neighboring Finland’s Nokia for 5G contracts. China, along with the US, is major markets for the group’s equipment.

In June, a Swedish court rejected Huawei’s appeal of the ban.
Following Britain’s move last summer, Sweden is the second country in Europe and the first in the European Union to ban Chinese conglomerates Huawei and ZTE from providing nearly all of the equipment needed to run a business. operating 5G network.

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