May 26, 2021 News
Ericsson has consistently spoken out against the Swedish government's bias against Huawei. According to the Swedish company, it faces a high risk of losing its market share in China if it continues. The company reiterates its concern about excluding Huawei and ZTE from 5G deployment in the domestic market. Ericsson once again mentions the Sino-Swedish issue in its latest prospectus for investors, where the prospectus is linked to the issuance by Ericsson of 8-year unsecured bonds worth € 500 million.
In a statement, the company reaffirmed concerns raised in the fourth quarter 2020 financial report that the decision to exclude Chinese products from the country's network could affect the country's economic interests and industries, including Ericsson. He also noted that the head office in Sweden means that the PTS decision is of particular importance, and there is a risk of retaliation from China.
'Even though Ericsson was invited to participate in various bidding procedures held in China, the final result is still unknown. The current assessment of the company is that its hopes for success are pretty low. According to Ericsson, this situation could affect the entire industry.
Ericsson Threatens To Leave Sweden
As for 5G equipment, there are three leading manufacturers - Huawei, Ericsson and Nokia. Since several countries banned Huawei, the playing field has not been equal. Nokia and Ericsson have an advantage over Huawei not because they are better but because of Huawei's ban.
Ericsson's CEO is unhappy with this situation. Earlier this year, Ericsson's CEO announced that 'if the ban on Huawei still exists, Ericsson will leave Sweden.' Daily News reports that Ericsson CEO Berier Ekholm said in a text message to Swedish Trade Minister Annie Hallberg that the company would leave Sweden if (the Swedish government) did not drop the complaint against Huawei and ZTE.
Holberg's response reads: 'The government cannot lift the ban on Huawei, as the interim secretariat of the Swedish Post and Telecommunications Administration decided based on recommendations from the Department of Security and the National Defense Forces.'
Børe Ekholm also said: 'Although we have talked to several Swedish law firms, no one is ready to help Huawei. There are a lot of cowards here. 'He also supports that Huawei and other major players should file a lawsuit against the ban.