Ericsson takes issue with Swedish ban on Huawei - FT (updated)
18/11/2020 19:30
(Adds Ericsson CFO comments)
STOCKHOLM/LONDON, Nov 18 (Reuters) - Sweden's decision to
ban China's Huawei from its 5G networks restricts free
competition and trade, the head of rival telecoms equipment
supplier Ericsson ERICb.ST told the Financial Times.
Swedish telecoms regulator PTS this month halted 5G spectrum
auctions after a court suspended parts of its decision that had
excluded Huawei HWT.UL from 5G networks over national security
risks. urn:newsml:reuters.com:*:nL8N2HV73P
"I belong in that category that believes competition makes
us longer term a better company. It may be painful shorter term
but longer term it drives us to be more innovative and make
better products for our customers," Ericsson CEO Borje Ekholm
told the newspaper.
Sweden's Ericsson has won contracts from all three major
operators in China to supply radio equipment for 5G networks,
while Finnish rival Nokia NOKIA.HE has not won any 5G radio
contracts in the highly competitive market. urn:newsml:reuters.com:*:nL1N2HK0CA
Huawei denies being a national security risk and has
appealed against Sweden's decision. urn:newsml:reuters.com:*:nL8N2HS2HF
China's foreign ministry has said Sweden should lift the ban
on Huawei and peer ZTE 000063.SZ to avoid a negative impact on
Swedish companies in China. urn:newsml:reuters.com:*:nL4N2HC2BC
Ekholm said he expected the overall rollout of the new
telecoms networks to be delayed, adding the political focus in
Europe should be on rolling out 5G as fast as possible.
"Think about 4G - the debate in Europe was: what is the
killer app? The Americans and Chinese rolled out 4G fastest and
the app economy for consumers is now dominated by American and
Chinese firms," he said.
"5G is going to be the same but for enterprise. Slowing the
rollout of 5G is a risk for the economy. Europe risks falling
behind again."
Separately, finance chief Carl Mellander told the Morgan
Stanley Technology, Media and Telecoms conference that fair
competition benefitted the whole industry ecosystem.
He also said Ericsson was growing its market share in
Europe, where Huawei is facing increasing restrictions.
"We will continue to take market share where there is an
opportunity which is truly value creating," he said.
"For the right cases, perhaps in urban areas for example
where we know that the traffic will continue to grow, (or) with
leading operators (...) those cases we are happy to step into,
even if it sometimes needs a bit of margin dilution in the
initial stages."
(Reporting by Helena Soderpalm in Stockholm and Paul Sandle in
London. Editing by Jane Merriman and Mark Potter)
((helena.soderpalm@thomsonreuters.com; +46 8 700 10 15; Reuters
Messaging: helena.soderpalm.reuters.com@reuters.net))