Ericsson awarded reduced market share by China Mobile
On July 19, 2021, Ericsson reported it has secured a 2% market share in China's 700MHz radio round for 5G network development, significantly down from the 11% share awarded in the earlier 2.6GHz CP2 round. This lower market share aligns with earlier guidance to investors and reflects ongoing competitive pressures. China Mobile is the first operator to grant awards in this round, and similar outcomes are anticipated from China Unicom and China Telecom. The reduction in market share follows the exclusion of Chinese vendors from Sweden's 5G auction, impacting Ericsson's competitive landscape.
- Secured 2% market share in China's 700MHz radio round for 5G development.
- Significant decrease from 11% market share in the previous 2.6GHz CP2 round.
- Ongoing competitive pressures from exclusion of Chinese vendors in Sweden's 5G auction.
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
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 (
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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