TELECOMMUNICATION
MAY 22, 2022
The Long History Of Ericsson Telecommunication Company
A Swedish company that produces high quality telecommunication equipments for more than a century.
Telefonaktiebolaget LM Ericsson, commonly known as Ericsson, is a multinational telecommunications and network company headquartered in Stockholm, Sweden.
Ericsson is the creator of Bluetooth technology. Ericsson is also leading the implementation of 5G worldwide, in part through the massive use of MIMO technology.
The company was founded in 1876 by Lars Magnus Ericsson initially as a telegraphy equipment repair shop. M. Ericsson began his journey as a worker in various factories, some in his hometown of Värmland, part in Stockholm. After living abroad as a scholarship student, he set up a workshop in 1876 to make mathematical and physical instruments.
Ericsson started manufacturing telephone sets within a few years, releasing the first telephone set made by him in 1878. Soon his invention was recognized in the world market. From his workshop, Lars Magnus Ericsson founded the joint stock company A.-BLM Ericsson & Co.
In 1878, he also entered into an agreement to supply telephones and switchboards to Sweden’s first telecommunications operator, Stockholms Allmänna Telefonaktiebolag.
In the 1930s the company moved to Stockholm, the then underdeveloped sector of Midsommarkransen.
The factory soon became a hallmark of the sector landscape and when the metro was expanded in the 1960s, the station was renamed Telefonplan.
Ericsson introduced the world’s first fully automated cellular telephone system, the MTA, in 1956. The company also launched one of the world’s first speaker hands-free phones in the 1960s. In 1954, the company launched the Ericofon. Ericsson’s crossbar switch equipment is also used in a number of countries.
In the 1990s Ericsson became a leading manufacturer of mobile phones. The growth of GSM, which later became the world’s de facto standard, combined with Ericsson’s other cellular standards, such as D-AMPS and PDC, meant that by early 1997, Ericsson had about 40% of the world’s cellular market share, with around 54 million subscribers.
Ericsson Mobile Platform is a supplier for GSM/EDGE technology platforms and WCDMA/HSPA platforms used in devices, such as mobile handsets and PC cards.
The International Telecommunication Union (ITU) then prepared specifications for 3G cellular services covering a number of technologies. Ericsson also sought a form of WCDMA (wideband CDMA) based on the GSM standard, and began testing it in 1996.
In March 2001, Ericsson issued a profit warning. In the next few years, sales to operators are expected to decline by 50%. Cellular phone production was also a burden for Ericsson, as it lost SEK 24 million in 2000. Because of this situation the Swedish company the took a big step in the cell phone business.
While still maintaining leadership in telephone switching equipment, particularly in GSM technology; the manufacture of mobile terminals (phones) was left to a new company: Sony Ericsson, made in association with Sony in October 2001.
Collaborated with Sony, Ericsson later produced various kinds of mobile phones under the Sony Ericsson brand.
However, the profit-sharing company began to face losses in 2003. This was because the company could not face other competing vendors. Sony Ericsson is considered to have failed to meet consumer needs because it lacks innovation through their homemade products. This collaboration then ended in 2012.
Until 2016, the company is headquartered in Stockholm, Sweden. The company employs approximately 95,000 people and operates in approximately 180 countries. Ericsson holds more than 49,000 patents as of September 2019, including a number of patents in the field of wireless telecommunications.
In 2018, Ericsson controlled 27% of the global 2G/3G/4G cellular network infrastructure market share, making it the largest outside China.
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