Ericsson has pledged to boost its US investment to support the acceleration of 5G network deployments across the country.
Investments from Ericsson will all into two categories: 1) increase research and development work done close to customers in the US, and 2) increase flexibility to shorten the timeline for new product introduction and product delivery to customers.
Börje Ekholm, President and CEO of Ericsson, says:
“The United States is our largest market, accounting for a quarter of Ericsson’s business over the last seven years.
To serve the demand of these fast-moving service providers, we are strengthening our investment in the US to be even closer to our customers and meet their accelerated 5G deployment plans.”
Back in June, Ericsson released its Mobility Report in which it predicts 5G subscriptions to reach 150 million – accounting for 48 percent of all mobile subscriptions – in North America, by the end of 2023.
Ericsson plans to open a new software development centre with a baseband focus in 2018, employing more than 200 engineers. This is in addition to the Austin ASIC Design Center in Texas which opened in late 2017 focusing on core microelectronics of 5G radio base stations.
Manufacturing will begin in the US in Q4 2018 to ‘enable Ericsson to operate closer to customers’ and provide ‘volume production of next-generation radios and the fast introduction of new products into the US market’.
The company’s pledge arrives mere days after Deloitte reported it would be ‘near impossible’ for the US to catch up with China in 5G.
Deloitte wrote in their report:
“Unless tangible steps are taken to help rebalance the private investment case for the upgrade with the demonstrated external benefits to other industries and the public good, the United States may risk losing the leadership it gained in the previous era.
The negative consequences could take decades to overcome, and other countries are already making their moves."
While there’s still a long way to go in addressing the gap between the US and China in 5G, the former is sure to welcome Ericsson’s pledge to increase private investment in the country.
What are your thoughts on Ericsson’s 5G investment pledge? Let us know in the comments.
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