Ericsson awarded reduced market share by China Mobile

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Jul 19, 2021, 11:49 ET

- Ericsson share for China Mobile CP for 700MHz radio award is 2%

- Decision reflects earlier market guidance in connection with global risk factors

STOCKHOLM, July 19, 2021 /PRNewswire/ -- 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.

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About Ericsson
Ericsson enables communications service providers to capture the full value of connectivity. The company's portfolio spans Networks, Digital Services, Managed Services, and Emerging Business and is designed to help our customers go digital, increase efficiency and find new revenue streams. Ericsson's investments in innovation have delivered the benefits of telephony and mobile broadband to billions of people around the world. The Ericsson stock is listed on Nasdaq Stockholm and on Nasdaq New York. www.ericsson.com

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Ericsson awarded reduced market share by China Mobile