Ericsson has announced an increase in its US investment to support and accelerate 5G network deployments across the country.
The company says its additional investments will be focused on two primary areas: first, expanding research and development work carried out close to US customers; and second, improving flexibility to shorten time-to-market for new product introductions and deliveries to service providers.
Börje Ekholm, President and CEO of Ericsson, commented:
“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.”
In its June Mobility Report, Ericsson forecasted that by the end of 2023 North America could see up to 150 million 5G subscriptions, representing roughly 48 percent of all mobile subscriptions in the region.
To support that growth, Ericsson plans to open a new software development center in 2018 with a focus on baseband development; the center is expected to employ more than 200 engineers. This facility will complement the Austin ASIC Design Center in Texas, which opened in late 2017 and focuses on microelectronics for 5G radio base stations.
Ericsson also intends to begin manufacturing in the US in Q4 2018. The company said local production will enable it to operate closer to customers, provide volume production of next-generation radios, and accelerate the introduction of new products to the US market.
The pledge comes shortly after a Deloitte report warned it would be “near impossible” for the US to catch up with China in 5G without significant policy and investment changes.
“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 closing the gap with China on 5G remains a major challenge, Ericsson’s increased investment in the US represents a concrete private-sector step toward accelerating deployment and innovation on the ground.
What are your thoughts on Ericsson’s 5G investment pledge? Let us know in the comments.
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