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Key takeaways from the call include:
Ericsson executives also provided insights into the future of the network’s gross margins and market expansion, highlighting cost reduction efforts and the potential of 5G business models. They anticipate North America to grow by 15% next year, while India’s growth is expected to taper off after a record year in 2022. The executives acknowledged the market’s competitiveness and the need for efficient R&D and cost savings. They also emphasized the importance of tapping into new revenue pools, such as enterprise digitization.
CEO Borje Ekholm expressed concerns about Europe’s lack of progress in building digital infrastructure, comparing it unfavorably with India’s strong nationwide 5G network. He stressed the importance of digital infrastructure for long-term competitiveness and hopes to see increased investments in Europe.
In terms of specific business segments, the executives acknowledged a slowdown in Vonage’s core business, which led to a goodwill impairment. However, they remain optimistic about the growth potential of the global network platform. They expect growth in the Cloud Software and Services segment to continue, and they believe that 5G core deployments will pick up in the future. Despite the impairment due to Vonage’s slowdown, Ericsson expects its Global Communication platform segment to grow in line with or slightly better than the market in the coming years.
The call concluded with the executives expressing optimism for the future, looking forward to the next earnings call in January 2023.
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