STOCKHOLM: Telecom equipment manufacturer Ericsson said Wednesday it had launched the first European large scale commercial 5G network together with Swiss operator Swisscom, as Ericsson posted a first quarter profit boosted by sales in North America.
The Swedish supplier of network equipment said in a statement that the 5G network, launched in 54 cities in Switzerland, had been switched on just after midnight on April 17, after Swisscom secured a license to operate a 5G network in the country.
Ericsson made the announcement as it reported a first quarter net profit of 2.4 billion kronor ($260 million, 230 million euros), compared to a net loss of 725 million kronor in the corresponding quarter a year ago.
Net sales grew to 48.9 billion kronor, up from 43.4 billion in Q1 of 2018.
Chief executive Borje Ekholm said growth had primarily been driven by sales in North America.
“To date we have publicly announced commercial 5G deals with 18 named operator customers, which, at the moment, is more than any other vendor,” Ekholm said in a statement.
Ekholm also said that as 5G technology was being rolled out, the company would continue to incur costs for field trials and they were expecting large-scale deployments of 5G to begin in parts of Asia by the end of 2019.
“Combined, this will gradually impact short-term margins but strengthen our position in the long term,” he said.
Shares in Ericsson traded up more than three percent on the Stockholm stock exchange following the release of the earnings report, hitting a four-year high in early trading on Wednesday.
Ericsson, one of Chinese telecom giant Huawei’s main rivals in the 5G market, said earlier this year it hadn’t felt any effects from US pressure on countries to ban Huawei’s equipment amid fears that it could compromise the security of the mobile phone networks.
US delays Huawei ban for 90 days
WASHINGTON: US officials have issued a 90-day reprieve on their ban on dealing with Chinese tech giant Huawei, saying breathing space was needed to avoid huge disruption.
A Commerce Department filing said the delay does not change the ban imposed by President Donald Trump on national security grounds, an action with major implications for US and Chinese technology firms.
Instead, it grants a temporary license that will allow Huawei to continue doing business with American firms.
“The Temporary General License grants operators time to make other arrangements and (gives) the Department space to determine the appropriate long term measures for Americans and foreign telecommunications providers that currently rely on Huawei equipment for critical services,” said Secretary of Commerce Wilbur Ross.
“In short, this license will allow operations to continue for existing Huawei mobile phone users and rural broadband networks.”
U.S. ban not to affect Huawei’s high-end and 5G products: Ren
SHENZHEN: The U.S. restrictions will definitely not affect Huawei’s high-end products, particularly in the 5G sector, said Ren Zhengfei, founder and president of Huawei Technologies Co., Ltd. on Tuesday.
The Bureau of Industry and Security (BIS) of the U.S. Department of Commerce earlier put Huawei and its affiliates on an “Entity List,” which would restrict the sale or transfer of U.S. technologies to the company.
At present, the ban will have an impact on Huawei’s low-end products, Ren said.
Huawei should not be restricted just because of its leading technology position, Ren told reporters.
“Our work is to benefit the whole humankind,” he said, adding that Huawei’s 5G equipment would greatly reduce the cost of the global telecom networks construction.
Huawei says discussing with Google how to deal with US ban
BEIJING: Huawei founder Ren Zhengfei on Tuesday said the company was discussing with Google how to deal with a US ban on companies selling or transferring US technology to Huawei.
The talks come after the US internet giant, whose Android mobile operating system powers most of the world’s smartphones, said this week it was beginning to cut ties with Huawei in light of the ban.
Google is a “highly responsible company,” Ren said, and that the two sides were “discussing how to create a response plan”.