Reuters – Exclusive – Ericsson scraps push for new clients beyond telecoms
Ericsson has ditched its goal of winning more clients beyond the telecoms industry to refocus on selling networks to mobile phone companies in a move to cut costs and halt a dramatic fall in its share price.
Ericsson sees opportunities to sell products to telecom clients which will need to upgrade their networks to address a greater flow of data enabled by 5G. It will also build additional capacity to connect objects around the world when the Internet of Things becomes reality.
But Bengt Nordstrom, head of consultancy firm Northstream which advises telecom operators and vendors, said 5G will only help sustain existing revenues and won’t bring additional ones in the foreseeable future.