Ericsson awarded reduced market share by China Mobile

Decision reflects earlier market guidance in connection with global risk factors

PRESS RELEASE  JUL 19, 2021 08:00 (GMT +00:00)

  

Following a review of bids in the CP for 700MHz radio round of China’s 5G network development, Ericsson has been awarded 2% market share.

 

In line with earlier market guidance to investors, this is materially lower than the market share previously awarded to the company in the 2.6GHz CP2 (11%).

 

China Mobile is the first operator to award under the latest round of CP’s for 5G radio. Given the context and based on the bidding rules, should Ericsson be awarded business in China Unicom and China Telecom we believe it would be in a similar range as with the China Mobile award.

 

As previously disclosed by Ericsson (NASDAQ: ERIC) most recently in its Q2 2021 financial report and in its 2020 annual report, the risk of lower market share award follows the decision by the Post and Telecommunication Authority (PTS) to exclude Chinese vendors’ products from the 5G auction in Sweden.