Ericsson has always been vocal against the Swedish government's bias against Huawei. According to the Swedish company, it faces a high risk of losing its market share in China if this continues. The company reiterates its concern over the domestic decision to exclude Huawei and ZTE from 5G deployment. Ericsson once again mentions the Sino-Swedish issue in its latest prospectus for investors. The prospectus is related to the issuance by Ericsson of 8-year unsecured bonds in the amount of EUR 500 million.
In a statement, the company confirmed concerns raised in its fourth quarter 2020 financial report that the decision exclude the products of Chinese manufacturers from the country's network can affect the economic interests of the country and its industries, including Ericsson. He also noted that the head office in Sweden means that the PTS decision is of particular importance and there is a risk of retaliation from China.
"Although Ericsson has been invited to participate in various bidding procedures in China, the final outcome is still unknown. The company's current assessment is that its prospects for success are quite low." According to Ericsson, such a situation could affect the entire industry.
Ericsson threatens to leave Sweden
When it comes to 5G equipment, there are three main manufacturers – Huawei, Ericsson and Nokia. Ever since Huawei was banned by several countries, the playing field has not been level. Nokia and Ericsson obviously have an advantage over Huawei not because they are better, but because of Huawei's ban.
The CEO of Ericsson is not happy with this situation. Earlier this year, Ericsson's CEO announced that "if the ban on Huawei is still in place, Ericsson will leave Sweden." Daily News reports that Ericsson CEO Berje Ekholm said in a text message to Swedish Trade Minister Anna Hallberg that the company will leave Sweden if (the Swedish government) does not drop complaints against Huawei and ZTE.
Holberg's response reads: "The government cannot lift the ban on Huawei because the interim secretariat of the Swedish Post and Telecommunications Administration made the decision based on recommendations from the security department and the National Defense Forces."
Bjore Ekholm also said: “Although we have spoken to several Swedish law firms, none are willing to help Huawei. There are a lot of cowards here." He also supports that Huawei and other major players should file a lawsuit against the ban.
