Swedish telecom supplier Ericsson is approaching a huge and vital business assignment in China.
The world’s largest telecommunication company China Mobile is about to order China’s new 4G network at approximately 33 billion kronor. Ericsson’s share of this would be 15-20 percent or 5-6,6 billion kronor.
The order includes the establishment of 200.000 new communication towers and the work is expected to start in the end of 2013. The competitors for the order are Nokia, Alcatel-Lucent and the Chinese Huawei and ZTE. Martin Nilsson, chief analyst at Nordea notes in his comment to Dagens Industri, that it is very important for the Swedish company to be part of the business deal.
“If Ericsson should not be part of this project then the cooperation between Ericsson and China Mobile will eventually die out as the GSM-network is phased out,” Martin Nilsson said to Dagens Industri.
In the background lurks the suspicion of EU from this spring that Chinese Huawei and ZTE has committed dumping in Europe. The EU Commission backed away from the plan to investigate the dumping following an agreement that European companies should have at least 30 percent share of the Chinese 4G business.