According to overseas media reports, the application of 5G in multiple industries is conducive to Ericsson's recovery, which will shift Ericsson from cost reduction to expansion plans.
Ericsson is currently working on a cost-saving plan to consolidate its profitability, which will continue into 2020. As the pace of 5G network upgrades accelerates, it is hoped that it will resume its growth in the next decade.
After 4G sales peaked, Ericsson's revenues continued to decline, and Ericsson placed hopes on emerging mobile businesses in ten areas including manufacturing, energy and public safety.
Ericsson predicts that the new business model brought by 5G technology may drive the telecommunications industry to grow by 36% based on current business.
Industry analysts expect that as the demand for next-generation 5G networks soars, the mobile device market will resume a modest growth from 2020. However, most analysts believe that 5G sales are unlikely to exceed 4G equipment spending.
Hedelin, Ericsson ’s head of network business strategy, predicts that the market for wireless access network (RAN) equipment will be relatively flat in 2020. Later, due to 5G upgrades, it will be used to speed up mobile phone networks, fixed wireless video access as an alternative to fiber or wired broadband connections, As well as the development of emerging industries, the market for RAN equipment will begin to grow.
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