Ericsson CEO: 5G Deployment Will Make Europe Lag Behind China And The United States In Industry Digitalization

- Feb 20, 2021-

In an interview, Borje Ekholm described the European telecommunications industry as "non-functioning" and said that it is understandable that operators are unwilling to invest in 5G given the risk of failing to obtain a return on investment.

Due to the lag in the deployment of next-generation mobile communications, he believes that the European continent will lag behind China and the United States in the future digitization of the industry.

Without 5G, the efficiency and competitiveness of the general industry will be reduced. "He said, "Without infrastructure, it is difficult to develop digital industries, which will affect the huge value potential and millions of future employment opportunities. "

When talking about the role of Ericsson and its main competitor Nokia in the entire European ecosystem, Borje pointed out that telecommunications is one of the few industries in continental Europe that has “strategic autonomy”.

However, due to security concerns, another major supplier, Huawei, is facing scrutiny and even bans in many countries in the region. The governments of certain countries have been pushing to open the network to new participants.

 Borje Ekholm described the situation as "very interesting" and expressed surprise that Europe would weaken Ericsson and Nokia, considering that some people "discussed granting EU subsidies to develop competing companies, most of which are located in the United States and Asia."

In the interview, he also reiterated criticism of Sweden's prohibition of Huawei from participating in network construction. Borje said that this move will damage its ability to compete on the world stage and restrict free trade.

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