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According to foreign media reports, Ericsson announced plans to start producing 5G wireless products in the US later this year and open a new R&D center to meet the needs of operators for the next generation of mobile services.
Ericsson CEO Borje Ekholm said in a statement that the United States is the company's largest market, accounting for a quarter of its business revenue in the past seven years. In the second quarter of this year, Ericsson’s sales in the North American market increased by 11% year-on-year. He said that increasing investment will help Ericsson better serve US telecom operators and meet their needs to accelerate their 5G deployment plans.
The United States plans to become one of the world's leaders in 5G deployments, and competition in the network equipment market is growing. South Korean manufacturer Samsung has already begun to work in the US market with the intention of competing with Ericsson and Nokia.
Ericsson plans to begin manufacturing products in the United States in the fourth quarter of this year and will begin with 5G wireless products. Ericsson will set up a dedicated R&D team to develop other products for the market and to prepare, test, integrate and supply the prototypes for the early prototypes.
The vendor also said it will open a new software R&D center in the US that will have more than 200 engineers focused on baseband technology, which will complement its ASIC design center in Texas in 2017. . Starting in 2019, these two R&D centers will begin to introduce new 5G products and software for Ericsson's global product portfolio.
Ericsson will also increase its R&D investment in AI and automation technology. Ericsson said that by the end of 2018, the company will build a team of 100 experts in North America who will explore new business opportunities and aim to promote automation technology using AI.
US carriers including Verizon and AT&T have announced that they will launch 5G fixed wireless services by the end of this year. T-Mobile US and Sprint are expected to launch 5G services in 2019.