The Economist – Wireless: the next generation
If the recent history of IT after the rise of cloud computing is any guide—with the likes of Dell, HP and IBM struggling to keep up—network-equipment makers will also get squeezed. Ericsson and Nokia already make nearly half of their sales by managing networks on behalf of operators. But 5G may finally bring about what has been long talked of, says Bengt Nordstrom of Northstream, another consulting firm: the convergence of the makers of computers and telecoms equipment, as standardisation and low margins force them together. Last year Ericsson formed partnerships first with HP and then with Cisco. Full mergers could follow at some point.
