The Swedish telecom multinational networking and telecommunications company Ericsson has flagged a risk of losing 5G market shares in China amid Sweden’s ban of Huawei from its 5G networks due to security concerns.
According to Reuters, the risk was flagged in an update to investors related to Ericsson’s issue of a EUR 500 million unsecured eight-year bond. Ericsson said while the company has been invited to various ongoing tender processes in China, the outcome remains uncertain.
“It is the company’s current assessment that the risk has increased that Ericsson will in those tenders be allocated a significantly lower market share than its current market share,” Ericsson stated.
The Swedish government’s ban on Huawei in October of last year had Huawei suing to overturn the decision. The result of the case is expected in a few weeks and it could potentially impact Ericsson’s prospects on the Chinese market.