Ericsson announces capability for 5G Advanced location based services in Q1-2026

Ericsson’s 5G Advanced location based services (LBS) offering is a comprehensive suite of innovations designed to redefine location-based services across commercial 5G Standalone (SA) networks. Set for release in Q1 2026, it makes Ericsson the leader in 5G positioning technology, offering a scalable and fully integrated solution on top of Ericsson’s dual-mode 5G Core network.

By embedding positioning as a core 5G SA network capability, Ericsson 5G Advanced location services enables Communications Service Providers (CSPs) to monetize precise location services and expand beyond traditional mobile offerings into verticals such as manufacturing, healthcare, public safety, automotive, drones, and more.

Key benefits:

  • High Accuracy: Down to sub-meter for indoor and sub-10 cm for outdoor positioning, enabling precise tracking
  • Scalability: Scalable, precise positioning for outdoor applications (automotive, agriculture, drones)
  • Seamless Indoor/Outdoor Coverage: Unified 5G positioning technology for both environments.
  • Developer & Device Friendliness: No need for device-side apps; improved battery life compared to satellite-based solutions
  • Support for Large-Scale Use Cases: Enables massive geofencing, population density analysis, and tracking use cases.

Monica Zethzon, Head of Core Networks, Ericsson, says: “With the launch of 5G Advanced Location Services we are evolving the value of 5G Standalone networks. This innovation gives CSPs the precision and scalability to create differentiated services based on location capabilities.”

Caroline Gabriel, Partner at Analysys Mason, says: “Ericsson’s integrated approach to indoor and outdoor positioning sets a new benchmark in the industry. It addresses critical pain points for operators and enterprises, particularly in sectors where location accuracy is mission-critical.”

The global market for 5G positioning is in its early stages but poised for rapid growth, driven by demand for enhanced precision in diverse sectors. Ericsson’s solution responds to this demand with scalable, developer-friendly capabilities that improve device battery life compared to legacy systems.

This launch further strengthens Ericsson’s location solutions based on Real-Time Kinematics technology, with related devices from Ericsson planned for Q1 2026.

Photo Credit: Ericsson

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3GPP’s 5G Advanced (starting with Release 18, finalized mid-2024) significantly enhances Location-Based Services (LBS) by integrating advanced positioning directly into the 5G SA core, aiming for centimeter-level accuracy indoors/outdoors, reducing power, and supporting new uses like RedCap, AR/VR, and drones, using techniques like bandwidth aggregation, carrier-phase, and AI/ML for better precision and energy efficiency, with further evolution in Release 19 and beyond. 
Key Enhancements in 5G Advanced (Rel-18 & Beyond):
  • Integrated Positioning: Positioning is built into the 5G Standalone (SA) architecture, moving beyond traditional GPS reliance.
  • High Accuracy & Efficiency: New techniques improve accuracy (e.g., bandwidth aggregation, carrier-phase measurements) and reduce power consumption for devices.
  • AI/ML Integration: Artificial Intelligence/Machine Learning is applied to enhance positioning accuracy, especially for challenging scenarios like beyond-visual-line-of-sight (BVLOS).
  • Support for New Devices/Apps: Enables precise tracking for wearables, industrial sensors (RedCap), augmented reality (AR), drone control, and smart grids.
  • Beyond-Line-of-Sight (BVLOS): Focus on reliable positioning for industrial and public safety applications where line-of-sight isn’t guaranteed.
  • Reduced Power: Solutions target lower power usage, crucial for IoT devices. 
Release Timeline & Focus:
  • Release 18 (5G Advanced Start): Finalized mid-2024, introduced major LBS enhancements, including RedCap positioning, bandwidth aggregation, and carrier-phase support.
  • Release 19 (Ongoing): Continues the evolution, extending LTM (L1/L2-triggered Mobility) and further exploring AI/ML for mobility and positioning.
  • Release 20 & Beyond: Will build on these foundations, further evolving towards 6G capabilities. 
In essence, 5G Advanced transforms LBS from a supplementary feature to a core network capability, offering precise, low-power, and versatile location awareness for a vast range of new applications. 
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References:

https://www.ericsson.com/en/press-releases/2026/1/5g-advanced-location-services

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Comparing AI Native mode in 6G (IMT 2030) vs AI Overlay/Add-On status in 5G (IMT 2020)

Executive Summary:

AI integration in 6G specifications (3GPP) and standards (ITU-R IMT 2030) highlights a strategic shift in the telecom industry towards AI-native networks, with telecom industry heavyweights like Huawei, Samsung, Ericsson, and Nokia actively developing foundational technologies. Unlike 5G, where AI and machine learning were limited applications or add-on features over existing architecture, 6G will incorporate AI from the onset with an “AI native” approach where intelligence will allow the network to be smart, agile, and able to learn and adapt according to changing network dynamics.

This transformation is necessary because future 6G networks will be too complex for human operators to manage, requiring AI-empowered and learning-driven networks that can facilitate zero-touch network management through capabilities including learning, reasoning, and decision-making.

Key Developments and Analysis:
  • AI-Native Networks: The industry consensus is that 6G will be “AI-native,” meaning artificial intelligence will be built directly into the core functions of network control, resource management, and service orchestration. This moves AI from an optimization layer in 5G to an foundational element in 6G.

AI Native Image Courtesy of Ericsson

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  • Company Initiatives:
    • Huawei is focused on making AI a native element of the network architecture (AI-native 6G) rather than an overlay technology, integrating communication, sensing, computing, and intelligence. This vision, called “Connected Intelligence,” involves two aspects: AI for 6G (network automation) and 6G for AI (AI as a Service, AIaaS).  More in Huawei Research Areas below.
    • Samsung is a major proponent of AI-RAN (Radio Access Network) technology. The company hosted a summit in November 2025 to showcase working AI-RAN technology that autonomously optimizes network performance and is conducting joint research with SK Telecom (SKT) on AI-supported RAN. Samsung sees vRAN (virtualized RAN) as a key enabler for “AI-native, 6G-ready networks”.
    • Ericsson emphasizes the necessity of a strong 5G Standalone (5G SA) foundation for an AI future, using AI to manage and automate current networks in preparation for 6G’s demands. Ericsson is also integrating agentic AI into its platforms for more autonomous network management.
    • Nokia is deepening its AI push, licensing software to expand AI use in mobile networks and preparing for early field trials in 2026 by porting baseband software to platforms like NVIDIA’s, which opens the door for more advanced AI use cases.
  • Industry Analysis and Trends:
    • Standardization: 2026 is crucial as formal 6G specification work begins in earnest within 3GPP with Release 21. In WP5D, the IMT 2030 RIT/SRIT standardization work will commence at the February 2027 meeting with the final deadline for submissions at the February 2029 meeting.  More in the ITU-R WP5D section below. 
    • The AI-RAN Alliance is an industry initiative (not a traditional SDO) focused on accelerating real-world AI applications and integration within the RAN. It works alongside SDOs, providing industry insights and pushing for rapid validation and testing of AI-RAN technologies, with a specific focus on leveraging accelerated computing.
    • Automation and Efficiency: AI-native algorithms in 6G are expected to deliver extreme spectrum and energy efficiency, significantly reducing operational costs for telcos while improving reliability and performance.
    • Monetization Challenges: Despite the technological promise, analysts caution that 6G remains largely theoretical for now. Some operators are stalling on full 5G SA deployment, waiting to move to 6G-ready cores later in the decade, leading to concerns that 5G SA might become an “odd generation.”
    • Infrastructure Constraints: The physical demands of AI infrastructure, particularly energy consumption and construction timelines, are becoming operational realities that may bound the pace of AI growth in 2026, regardless of software advancements. 
    • ITU-R Working Party (WP) 5D is making AI a native and foundational element of the 6G (IMT-2030) system, rather than the “add-on” or “overlay” status it had in 5G (IMT 2020). This shift is being achieved through the definition of specific AI capabilities and requirements that future 6G technologies must inherently support. In particular:
  • Defining AI as a Core Capability: The Recommendation ITU-R M.2160 (“Framework and overall objectives of the future development of IMT for 2030 and Beyond”) officially defines “Artificial Intelligence and Communication” as one of the six major usage scenarios and an overarching design principle for IMT-2030.
  • Integrating AI into the Radio Interface: WP 5D is actively developing technical performance requirements (TPRs) and evaluation criteria for proposed 6G radio interface technologies (RITs) that inherently incorporate AI/Machine Learning (ML). This includes work on:
    • AI-enabled air interface design: This involves the physical layer, potentially moving towards AI-native physical (PHY) layers that can dynamically adapt waveforms and network parameters in real-time, rather than relying on predefined, static configurations.
    • AI-driven resource management: AI/ML algorithms will be crucial for real-time optimization of spectral and energy efficiency, managing complex traffic, and ensuring Quality of Service (QoS).
  • Enabling AI-Driven Services: The framework for IMT-2030 is designed to support the full lifecycle of AI components, from data collection and model training to deployment and performance monitoring, enabling new AI-driven services and applications directly within the network infrastructure.
  • Establishing a Formal Timeline: WP 5D has established a clear timeline for 6G standardization, with specific stages for vision, requirements, evaluation methodology, and specifications. This structured approach ensures that all proposed RITs/SRITs are evaluated against the new AI-native requirements, promoting global alignment and preventing AI from becoming a fragmented, proprietary solution.
    • Stage 1 (Vision): Completed in June 2023.
    • Stage 2 (Requirements & Evaluation): Targeted for completion in 2026.
    • Stage 3 (Specifications): Expected by the end of 2030.
6G, as envisioned in the ITU-R’s IMT-2030 framework, is being designed from the ground up as an “AI-native” system. 
  • Purpose: AI is integral to the entire network lifecycle, from initial design and deployment to autonomous operation and service creation.
  • Integration Level: Intelligence is embedded across all layers of the network stack, including the physical layer (air interface), control plane, and data plane.
  • Scope: AI enables core functionalities such as real-time self-optimization, self- healing capabilities, and dynamic resource allocation, rather than static, predefined configurations.
  • Outcome: The creation of a fully cognitive, self-managing, and highly adaptable “intelligence fabric” capable of supporting advanced use cases like real-time holographic communication, digital twins, and autonomous systems with ultra-low latency. 
Comparing AI as an overlay in 5G (IMT 2030) vs AI native mode in 6G (IMT 2030):
Feature  5G (IMT-2020) 6G (IMT-2030)
AI Role Optimization tool (overlay) Foundational and native element
Network Operation Manual configuration with AI assistance Autonomous and self-managing
Air Interface Human-designed with some ML optimization AI/ML-designed and managed
Complexity Management Relies on standard protocols Manages complexity through embedded AI/ML
Services Supported Enhanced mobile broadband, basic IoT Integrated AI & Communication, sensing, holographic comms

–>By embedding AI into the fundamental design principles and technical requirements of IMT-2030, ITU-R WP 5D is ensuring that 6G is an AI-native network capable of self-management, self-optimization, and supporting a vast ecosystem of AI applications, a significant shift from the supplementary role AI played in 5G. 

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Huawei’s Research Areas and Activities:
  • Agentic-AI Core (A-Core): Huawei unveiled a blueprint for a 6G core network (which will be specified by 3GPP and NOT ITU) where services are managed by specialized AI agents using a large-scale network AI model called “NetGPT”. This allows the network to program, update, and execute its own control procedures automatically without human intervention, based on natural language instructions.
  • Network Architecture Redesign: Huawei proposes the NET4AI system architecture, a service-oriented design that moves beyond the 5G service-based architecture. It introduces a dedicated data plane (DP) to handle the massive volume of data generated by AI and sensing services, enabling flexible and efficient many-to-many data flow for distributed learning and inference.
  • Integrated Sensing and Communication (ISAC): A core pillar of Huawei’s 6G work is the native integration of sensing with communication. This allows the network to use radio waves for high-resolution sensing, localization, and imaging, creating a “digital twin” of the physical world. The large volume of data collected from sensing then serves as a source for AI model training and real-time environmental monitoring.
  • Distributed Machine Learning: Huawei researches deep-edge architecture to enable massive, distributed, and collaborative machine learning (ML). This includes the development of frameworks like a two-level learning architecture that combines federated learning (FL) and split learning (SL) to optimize computing resources and ensure data privacy by keeping raw data local to devices.
  • AI as a Service (AIaaS): The 6G network is designed to provide AI capabilities as a service, allowing the training and inference of large AI models to be distributed across the network (edge and cloud). This offers low-latency performance and access to rich data for AI-driven applications like collaborative robotics and autonomous driving.
  • Energy Efficiency and Sustainability: The company is researching how native AI capabilities can improve overall energy efficiency by up to 100 times compared to 5G. This involves smart energy control, dynamic resource scaling, and optimizing communication paths for lower power consumption.
  • Standardization and White Papers: Huawei is actively contributing to global 6G discussions and standardization bodies like the ITU-R, sharing its vision through publications such as the book 6G: The Next Horizon – From Connected People and Things to Connected Intelligence and various technical white papers. The goal is to define the technical specifications and use cases for 6G that will drive industry-wide innovation by around 2030. 
In summary, the telecom industry is laying the critical groundwork for an AI-native 6G era through research, standard setting, and strategic investments in AI-powered network solutions, even as commercial deployment remains several years away. Decisions must be made on spectrum use (especially in the FR3 range of 7-24 GHz), silicon roadmaps, and network architectures which will have lasting impact.
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References:

https://www.ericsson.com/en/reports-and-papers/white-papers/ai-native

Roles of 3GPP and ITU-R WP 5D in the IMT 2030/6G standards process

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ITU-R WP5D IMT 2030 Submission & Evaluation Guidelines vs 6G specs in 3GPP Release 20 & 21

ITU-R WP 5D Timeline for submission, evaluation process & consensus building for IMT-2030 (6G) RITs/SRITs

ITU-R WP 5D reports on: IMT-2030 (“6G”) Minimum Technology Performance Requirements; Evaluation Criteria & Methodology

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Deutsche Telekom: successful completion of the 6G-TakeOff project with “3D networks”

Market research firms Omdia and Dell’Oro: impact of 6G and AI investments on telcos

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Highlights of Ericsson’s Mobility Report – November 2025

The latest issue of the Ericsson Mobility Report states that 5G subscriptions now account for one-third of total mobile subscriptions. Mobile network data traffic grew slightly more than expected – 20 percent between Q3 2024 and Q3 2025. As 5G evolves, service providers are increasingly exploring innovative use cases and new monetization opportunities such as offering differentiated connectivity services and modernizing enterprise IT with 5G.

After many years of hype, network slicing, which requires a 5G SA core network, is finally gaining market traction with 33 communications service providers now offering variations of the technology. Of the 118 network slicing cases discovered by Ericsson’s researchers, 65 have moved beyond proof of concept and into commercial services, either as standalone subscription services or as add-on packages for consumer or business customers. Ericsson attributes this growth spurt to more widespread deployment of 5G SA core networks.

Looking further ahead, the 6G RAN standardization process has begun in 3GPP and ITU-R WP5D, with the first commercial launches expected in front-runner markets.

–>However, there has been no work initiated on the 6G core network in either 3GPP or ItU-T.

Ericsson’s report says the U.S., Japan, South Korea, China, India and some Gulf Cooperation Council countries are the 6G leaders. Global 6G subscriptions are likely to reach 180 million by the end of 2031, the report predicts. 

We think that forecast is highly unlikely as the IMT 2030 (6G) RIT/SRITs recommendation won’t be completed till the end of 2030 with initial deployments sometime in 2031.

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Data from Omdia, a Light Reading sister company, shows Ericsson, Huawei and Nokia were even more dominant last year than they were in 2023, growing their combined market share by 2.3 percentage points over this period, to 77.4%. Besides China’s ZTE, the only other contender with more than a percentage point of market share was Samsung.

References:

https://www.ericsson.com/en/reports-and-papers/mobility-report/reports/november-2025

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Ericsson’s revenue drops, profits soar; deal with Vodafone and partnership with Export Development Canada look promising

Ericsson’s 3rd quarter 2025 results released today showed a 9% drop in revenues, to 56.2 billion Swedish kronor (US$5.9 billion), compared with the same period last year. Ericsson’s gross margin rose 2% to 47.6%.   U.S. sales fell by as much as 17% year-over-year for the 3rd quarter, to about SEK22.5 billion ($2.4 billion), after an especially busy period in 2024. And the only region where Ericsson realized any growth was northeast Asia, and that was due to Japan’s new 5G rollout.

At Ericsson’s big mobile networks unit, sales fell 11% year-over-year, to SEK35.4 billion ($3.7 billion), while the decline on a constant-currency basis was just 4%. The division’s operating income also slid by 6%, to SEK7.1 billion ($740 million).

Sales were much better at the company’s cloud software and services group, responsible for the development of Ericsson’s core network software as well as its business and operational support systems. Reported sales rose 3%, to SEK15.3 billion ($1.6 billion), while Ericsson put the organic improvement at 9%. More importantly, it swung from an operating loss of SEK400 million ($42 million) a year earlier to a profit of SEK1.7 billion ($180 million).

Net income soared by an astonishing 191%, to SEK11.3 billion ($1.2 billion).  That sharp increase in net income was due to Ericsson’s recent sale of iconectiv, a provider of number-portability and data-exchange services, to a private equity firm. The deal landed Ericsson a capital gain of SEK7.6 billion ($800 million) that flattered its profits at the operating income level. In Stockholm, Ericsson’s share price soared more than 14% in mid-morning trade, although it remained almost 2% below its level at the start of the year.

CEO Börje Ekholm said on today’s earnings call: “The margin expansion reflects actions we’ve taken over the last years to increase operational excellence and efficiency, including the work we’ve done on our cost base. Over the last year, we’ve reduced our headcount by some 6,000, leveraging new ways of working, and that of course includes AI.”

Since the end of 2022, the year Ericsson acquired VoIP software developer Vonage for $6.2 billion, headcount has fallen by more than 15,600, to just 89,898 at the end of June, the company revealed in its latest earnings report.

The Vonage business suffered a 17% drop in sales, to SEK3.2 billion ($330 million), and saw its loss widen by 50%, to SEK600 million ($63 million). It is where Ericsson believes it can monetize the network application programming interfaces (APIs) that will link software apps to networks and hopefully revitalize the 5G market.  However, that’s not happening yet.

“The geopolitical situation has required us to shift resources a bit politically. As we went through that transition, we duplicated a large part of the R&D spend. We don’t need to have that anymore as we have relocated R&D,” said Ekholm. “We are not going to jeopardize technology leadership and if we feel there is any risk – and that is a risk I don’t see today – then we would of course need to reassess.”

After years of growth, R&D spending fell by 10% year-over-year for the first nine months of 2025, to SEK35.8 billion ($3.8 billion), prompting concern among analysts that Ericsson could lose competitiveness versus Chinese rivals.

AI is now being used to refine the algorithms that are fed into Ericsson’s software products, said Per Narvinger, the head of Ericsson’s mobile networks business group, on a call with Light Reading.  No indication was given if that would reduce headcount any further.

Ericsson hopes the new 5G contract it announced with Vodafone earlier today will boost sales in Europe, where underinvestment in midband 5G coverage and the “standalone” variant of 5G have been constant bugbears for the company. After the rollout of “non-standalone” 5G, which maintains the 4G core, operators just continued to sell a “4G plus” service, Ekholm said.

“It was the established business model of most operators around the world, so it became very natural to take that step and then use 5G almost as a marketing icon on the phone, but, in reality, it didn’t give the extra capabilities,” he added. Standalone features such as low latency and network slicing will be critical in future apps, Ekholm correctly said, arguing that 6G will necessitate edge cloud and AI investments that have also not yet happened.

In summing up, Ericsson said “Increased uncertainty remains on the outlook, both in terms of potential for further tariff changes as well as in the broader macroeconomic environment.”

Looking ahead:
– Continue to invest in technology leadership to strengthen competitive position
– Future-proofed Open RAN-ready portfolio
– New use cases to monetize network investments taking shape
● AI applications becoming a key driver for network investments
● Structurally improving the business through rigorous cost management

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Separately,

Ericsson today announced the signing of a USD $3 billion partnership agreement with Export Development Canada (EDC) to expand investment in Canadian research and development, deepen domestic supply chains, and accelerate next-generation technologies including 5G, Cloud RAN, AI, and quantum innovation.

Börje Ekholm, President and CEO, Ericsson, says: “Canada is one of Ericsson’s most important hubs for global research and development, and this partnership with Export Development Canada will allow us to scale that leadership even further. By strengthening our collaboration with Canadian businesses, universities and government partners, we can accelerate breakthroughs in 5G, quantum, and Cloud RAN that will drive growth, create opportunities, and reinforce Canada’s position as a global leader in next generation networks.”

With more than 3,100 employees nationwide and R&D centres in Ottawa, Montreal, and Toronto, Ericsson Canada is at the heart of the company’s global innovation footprint. Canadian teams are driving advancements in 5G, 5G Advanced, and 6G, while also contributing to new research in quantum communications and AI-powered network management.

The three-year partnership will enable Ericsson to expand its Canadian-led innovation and global projects with the support of financial and insurance solutions from EDC. By reinforcing Ericsson’s Canadian supply chain and connecting the company with innovative domestic businesses, the agreement will also amplify Ericsson’s ability to bring Canadian technology to the world, strengthen competitiveness, and create new opportunities for Canadian companies within Ericsson’s global network of partners.

Across all wireless network equipment vendors, annual sales of RAN products fell from $45 billion in 2022 to $35 billion last year, according to Omdia, a Light Reading sister company. Market research firms Omdia and Dell’Oro have encouragingly guided for a more stable market this year.

Most wireless network providers have seen no incentive to spend more on 5G when their returns to date have been so disappointing. And there is skepticism about the business case for low latency services and network slicing. Telcos increasingly sell large bundles of gigabytes to their customers and have struggled to monetize other features.

References:

https://www.ericsson.com/4a8fc0/assets/local/investors/documents/financial-reports-and-filings/interim-reports-archive/2025/9month25-en.pdf

https://www.ericsson.com/4a90a6/assets/local/investors/documents/financial-reports-and-filings/interim-reports-archive/2025/9month25-ceo-slides.pdf

https://www.lightreading.com/5g/ericsson-says-world-is-flat-amid-us-gloom-and-keeps-cutting

https://www.lightreading.com/open-ran/vodafone-spring-6-lands-with-a-whimper-for-ericsson-and-samsung

https://www.ericsson.com/en/press-releases/6/2025/ericsson-edc-advance-canadas-technology-leadership

Ericsson integrates agentic AI into its NetCloud platform for self healing and autonomous 5G private networks

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Ericsson integrates Agentic AI into its NetCloud platform for self healing and autonomous 5G private networks

Ericsson is integrating Agentic AI into its NetCloud platform to create self-healing and autonomous 5G private (enterprise) networks. This initiative upgrades the existing NetCloud Assistant (ANA), a generative AI tool, into a strategic partner capable of managing complex workflows and orchestrating multiple AI agents.  The agentic AI agent aims to simplify private 5G adoption by reducing deployment complexity and the need for specialized administration.   This new agentic architecture allows the new Ericsson system to interpret high-level instructions and autonomously assign tasks to a team of specialized AI agents.

Key AI features include:

  • Agentic organizational hierarchy: ANA will be supported by multiple orchestrator and functional AI agents capable of planning and executing (with administrator direction). Orchestrator agents will be deployed in phases, starting with a troubleshooting agent planned in Q4 2025, followed by configuration, deployment, and policy agents planned in 2026. These orchestrators will connect with task, process, knowledge, and decision agents within an integrated agentic framework.
  • Automated troubleshooting: ANA’s troubleshooting orchestrator will include automated workflows that address the top issues identified by Ericsson support teams, partners, and customers, such as offline devices and poor signal quality. Planned to launch in Q4 2025, this feature is expected to reduce downtime and customer support cases by over 20 percent.
  • Multi-modal content generation: ANA can now generate dynamic graphs to visually represent trends and complex query results involving multiple data points.
  • Explainable AI: ANA displays real-time process feedback, revealing steps taken by AI agents in order to enhance transparency and trust.
  • Expanded AIOps insights: NetCloud AIOps will be expanded to provide isolation and correlation of fault, performance, configuration, and accounting anomalies for Wireless WAN and NetCloud SASE. For Ericsson Private 5G, NetCloud is expected to provide service health analytics including KPI monitoring and user equipment connectivity diagnostics. Planned availability Q4 2025.
Planned to be available Q4 2025, the integration of Ericsson Private 5G into the NetCloud platform brings powerful advantages to enterprise 5G customers, including access to AI features, real-time feature availability, simplified lifecycle management, greater agility across multisite deployments and better administrator controls with distinct user roles and permissions. NetCloud acts as a foundation for future agentic AI features focused on removing friction and adding value for the enterprise. These innovations directly address critical adoption barriers as more industrial enterprises leverage private 5G for business-critical connectivity. With this integration, Ericsson is empowering businesses to overcome these challenges and unlock the full potential of 5G in IT and OT environments.
Ericsson announces integration of new agentic AI technology into NetCloud
Ericsson says: “Agentic AI is the next wave of AI. It acts as a powerful force multiplier, characterized by multiple specialized agents working collaboratively to tackle complex problems and manage intricate workflows. These AI advisors serve as vigilant partners, providing continuous monitoring and intelligent assistance to maintain and optimize operational environments.”
Image Credit: Ericsson
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Manish Tiwari, Head of Enterprise 5G, Ericsson Enterprise Wireless Solutions, adds: “With the integration of Ericsson Private 5G into the NetCloud platform, we’re taking a major step forward in making enterprise connectivity smarter, simpler, and adaptive. By building on powerful AI foundations, seamless lifecycle management, and the ability to scale securely across sites, we are providing flexibility to further accelerate digital transformation across industries. This is about more than connectivity: it is about giving enterprises the business-critical foundation they need to run IT and OT systems with confidence and unlock the next wave of innovation for their businesses.”

Pankaj Malhotra, Head of WWAN & Security, Ericsson Enterprise Wireless Solutions, says: “By introducing agentic AI into NetCloud, we’re enabling enterprises to simplify deployment and operations while also improving reliability, performance, and user experience. More importantly, it lays the foundation for our vision of fully autonomous, self-optimizing 5G enterprise networks, that can power the next generation of enterprise innovation.”

Ericsson is positioning itself as a leader in enterprise 5G by being the first major vendor to introduce agentic AI into network management. This move is seen as going beyond standard AIOps, aligning with the industry trend towards AI-native management systems.  Ericsson hopes it will increase revenues which grew at a tepid 2% year-over-year in the last quarter. The company had the largest sales (#1 vendor) of 5G network equipment outside of China last year.
References:

Ericsson CEO’s strong statements on 5G SA, WRC 27, and AI in networks

At the Technology Policy Institute Forum in Aspen, Colorado this week, Ericsson CEO Börje Ekholm made many comments about “The Future of Wireless & Global Connectivity.”  To begin with, he said it’s super critical for western nations, including the U.S., to increase their 5G Stand Alone (SA) network deployments.  5G network operators need 5G SA to take full advantage of the platform to support apps and services that are optimized for low latency, higher uplink prioritization and network slicing. “It’s hard to monetize something you don’t have,” Ekholm said. “The network has to be built for 5G SA.”

Ekholm’s 5G SA comments echo those of Magnus Ewerbring, Ericsson’s chief technology officer – Asia Pacific, who strongly asserted that 5G SA is the way for wireless network operators to monetize and differentiate their 5G networks. 

Ekholm noted that China has prioritized 5G SA and has more than 4 million base stations deployed, estimating that this represents about ten times what’s been deployed in the US. China has been able to monetize that by supporting advanced robotics and automation in tens of thousands of factories. China is “highly competitive,” has “enormous scale, domestically,” and has made 5G SA a priority, the Ericsson CEO said.  Western countries needs to take China’s 5G SA efforts “seriously” and invest more in their wireless infrastructure as it’s a competitive imperative. 

Status of 5G SA network deployments:

A recent Heavy Reading (now part of Omdia) operator survey found that 35% of respondents said they have deployed 5G SA, with 20% expecting to be live by year-end. Some 41% cited “new or better services” as the primary driver for 5G core investment.

After a very slow start during the past five years, Téral Research says the migration to 5G SA has increased.  Of the total 354 commercially available 5G public networks reported at the end of 1Q25, 74 are 5G SA –  up from 49 one year ago.  This growth is being driven by the success of fixed wireless access (FWA), a wider range of 5G SA-compatible devices, and the rise of voice over new radio (VoNR). Téral is also seeing increased adoption of private cloud for SA core deployments, with data sovereignty concerns shaping CSP strategies. Network slicing, which requires 5G SA, is moving from theory to practice—now extending to critical use cases like military applications.

3GPP URLC specifications are still not finalized and approved:

It should be noted that the 3GPP specifications for URLLC (Ultra-Reliable Low-Latency Communication) in the 5G SA core network and 5G NR access network are not considered 100% completed or finalized. URLLC relies on both the 5G NR (Radio Access Network) and the 5G Core network to achieve its goals. URLLC is vital for various industrial applications requiring real-time control and automation, such as the Industrial Internet of Things (IIoT), virtual reality, and autonomous vehicles. 

3GPP Release 16 introduced significant enhancements for URLLC in the 5G New Radio (NR) access and 5G Core network. While Release 16 was “frozen” in July 2022, work on URLLC enhancements, particularly in the Radio Access Network (RAN), was not fully completed. These enhancements are crucial for 3GPP NR to meet the ITU-R M.2410 minimum performance requirements for URLLC for ultra-high reliability and ultra low latency.

 3GPP Technical Specifications (TS) and Technical Reports (TR) become “official” standards when transposed into corresponding publications of the 3GPP Organizational Partner (like ETSI)  or the standards body ((ITU-R)) acting as publisher for the Partner (ATIS for ITU-R). Once a Release is frozen (see definition in TR 21.900) and all work items completed, 3GPP specifications are officially transposed and published by the Organizational Partners, as a part of their standards series.

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Ekholm also said that strong western representation at ITU-R’s WRC-27 “is critically important.”  That’s because licensed spectrum is likewise critical for the next generation of automation, self-driving vehicles and AI applications that will require a “truly reliable” and low-latency network, he added without mentioning the incomplete 3GPP URLLC specs.

AI is the most fundamental technology we’ve seen so far,” he said. Ericsson has already been able to generate a 10% boost in spectrum efficiency using AI tools. While AI will no doubt erase some jobs, he’s also optimistic it will create new ones.  Like so many analysts, Ekholm expects  Gen AI to drive more traffic and new capabilities. “The criticality of the connectivity layer will become even more important,” he added.

References:

https://www.lightreading.com/5g/ericsson-ceo-calls-for-bigger-push-toward-5g-sa

https://www.tpiaspenforum.tech/agenda

Ericsson reports ~flat 2Q-2025 results; sees potential for 5G SA and AI to drive growth

Ookla: Uneven 5G deployment in Europe, 5G SA remains sluggish; Ofcom: 28% of UK connections on 5G with only 2% 5G SA

Ookla: Europe severely lagging in 5G SA deployments and performance

Téral Research: 5G SA core network deployments accelerate after a very slow start

Vision of 5G SA core on public cloud fails; replaced by private or hybrid cloud?

Latest Ericsson Mobility Report talks up 5G SA networks and FWA

3GPP Release 16 5G NR Enhancements for URLLC in the RAN & URLLC in the 5G Core network

 

Ericsson completes Aduna joint venture with 12 telcos to drive network API adoption

Today, Ericsson announced the completion of the equity investments by twelve global communication service providers (CSPs) into its subsidiary Aduna, formally establishing Aduna as a 50:50 joint venture. Aduna was created to combine and sell aggregated network Application Programming Interfaces (APIs) globally. It has been operational since the deal signed on 11 September 2024.  Aduna is now owned by AT&T, Bharti Airtel, Deutsche Telekom, Ericsson, KDDI, Orange, Reliance Jio, Singtel, Telefonica, Telstra, T-Mobile, Verizon and Vodafone.  

The network APIs, based on the CAMARA open source project of the GSMA and Linux Foundation, are designed to enable network operators to offer services such as service level assurance, fraud prevention and authentication programmatically to application developers, similar to how those same application developers can easily spin up cloud compute instances on cloud providers like Google Cloud and Microsoft Azure. For telcos and other network operators, network APIs promise the potential to leverage 5G networks for new business models and revenue streams.

The Aduna ecosystem includes additional CSPs worldwide, as well as major developer platform companies, global system integration (GSI) companies, communication platform-as-a-service (CPaaS) companies, and independent software vendor (ISV) companies.  To date these include: e& (in UAE -formerly Etisalat), Bouygues Telecom, Free, CelcomDigi, Softbank, NTT DOCOMO, Google Cloud, Vonage, Sinch, Infobip, Enstream, Bridge Alliance, Syniverse, JT Global, Microsoft, Wipro and Tech Mahindra – each playing a vital role in advancing the reach and impact of network APIs worldwide.

Former Vonage COO Anthony Bartolo, became Aduna CEO this past January. He said in a statement:

“The closing of the transaction is another important step for Aduna. In just ten months we have built an impressive ecosystem comprising the biggest names in telecoms and the wider ICT industry. The closing provides renewed motivation for Aduna to accelerate the adoption of network APIs by developers on a global scale. This includes encouraging more telecom operators to join the new company, further driving the industry and developer experience.”

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A Febuary 2024 McKinsey article stated:

Network APIs are the interlocking puzzle pieces that connect applications to one another and to telecom networks. As such, they are critical to companies seamlessly tapping into 5G’s powerful capabilities for hundreds of potential use cases, such as credit card fraud prevention, glitch-free videoconferencing, metaverse interactions, and entertainment. If developers have access to the right network APIs, enterprises can create 5G-driven applications that leverage features like speed on demand, low-latency connections, speed tiering, and edge compute discovery.

In addition to enhancing today’s use cases, network APIs can lay the foundation for entirely new ones. Remotely operated equipment, semi-autonomous vehicles in production environments, augmented reality gaming, and other use cases could create substantial value in a broad range of industries. By enabling these innovations, telecom operators can position themselves as essential partners to enterprises seeking to accelerate their digital transformations.

Over the next five to seven years, we estimate the network API market could unlock around $100 billion to $300 billion in connectivity- and edge-computing-related revenue for operators while generating an additional $10 billion to $30 billion from APIs themselves. But telcos won’t be the only ones vying for this lucrative pool. In fact, with the market structure currently in place, they would cede as much as two-thirds of the value creation to other players in the ecosystem, such as cloud providers and API aggregators—repeating the industry’s frustrating experience of the past two decades.

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Telecom API Market Size and Forecast 2025 to 2034 by Precedence Research:

The global telecom API market size was estimated at USD 252.10 billion in 2024 and is anticipated to reach around USD 1741.39 billion by 2034, expanding at a CAGR of 21.32% from 2025 to 2034.

Aduna Global can potentially scale network APIs across regions, and maybe even globally, Leonard Lee, executive analyst at neXt Curve, told Fierce Network.  Aduna can potentially help deliver trust and regulatory clients that network APIs need for widespread adoption.  Aduna itself won’t directly offer services Aduna partners such as JT Global, Vonage and AWS already offer fraud prevention services that leverage relevant security and authentication-related network APIs, Lee said.

“You won’t likely see Aduna Global offer a fraud prevention service,” he added. “You need to look at Vonage, Infobip, Tech Mahindra and the like to offer these solutions that will likely be accessible to developers through APIs.”

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References:

https://www.ericsson.com/en/press-releases/2025/7/ericsson-announces-completion-of-aduna-transaction

https://www.fierce-network.com/wireless/ericsson-finalizes-network-api-venture-aduna-12-global-operators

New venture to sell Network Application Programming Interfaces (APIs) on a global scale

https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/what-it-will-take-for-telcos-to-unlock-value-from-network-apis

https://www.precedenceresearch.com/telecom-api-market

Telefónica and Nokia partner to boost use of 5G SA network APIs

 

Ericsson reports ~flat 2Q-2025 results; sees potential for 5G SA and AI to drive growth

Ericsson’s second-quarter results were not impressive, with YoY organic sales growth of +2% for the company and +3% for its network division (its largest). Its $14 billion AT&T OpenRAN deal, announced in December of 2023, helped lift Swedish vendor’s share of the global RAN market by +1.4 percentage points in 2024 to 25.7%, according to new research from analyst company Omdia (owned by Informa).  As a result of its AT&T contract, the U.S.  accounted for a stunning 44% of Ericsson’s second-quarter sales while the North American market resulted in a 10% YoY increase in organic revenues to SEK19.8bn ($2.05bn). Sales dropped in all other regions of the world!  The charts below depict that very well:

Ericsson’s attention is now shifting to a few core markets that Ekholm has identified as strategic priorities, among them the U.S., India, Japan and the UK. All, unsurprisingly, already make up Ericsson’s top five countries by sales, although their contribution minus the US came to just 15% of turnover for the recent second quarter. “We are already very strong in North America, but we can do more in India and Japan,” said Ekholm. “We see those as critically important for the long-term success.”

 

Opportunities: As telco investment in RAN equipment has declined by 12.5% (or $5 billion) last year, the Swedish equipment vendor has had few other obvious growth opportunities. Ericsson’s Enterprise division, which is supposed to be the long-term provider of sales growth for Ericsson, is still very small – its second-quarter revenues stood at just SEK5.5bn ($570m) and even once currency exchange changes are taken into account, its sales shrank by 6% YoY.

On Tuesday’s earnings call, Ericsson CEO Börje Ekholm said that the RAN equipment sector, while stable currently, isn’t offering any prospects of exciting near-term growth. For longer-term growth the industry needs “new monetization opportunities” and those could come from the ongoing modest growth in 5G-enabled fixed wireless access (FWA) deployments, from 5G standalone (SA) deployments that enable mobile network operators to offer “differentiated solutions” and from network APIs (that ultra hyped market is not generating meaningful revenues for anyone yet).

Cost Cutting Continues: Ericsson also has continued to be aggressive about cost reduction, eliminating thousands of jobs since it completed its Vonage takeover. “Over the last year, we have reduced our total number of employees by about 6% or 6,000,” said Ekholm on his routine call with analysts about financial results. “We also see and expect big benefits from the use of AI and that is one reason why we expect restructuring costs to remain elevated during the year.”

Use of AI: Ericsson sees AI as an opportunity to enable network automation and new industry revenue opportunities. The company is now using AI as an aid in network design  – a move that could have negative ramifications for staff involved in research and development. Ericsson is already using AI for coding and “other parts of internal operations to drive efficiency… We see some benefits now.  And it’s going to impact how the network is operated – think of fully autonomous, intent-based networks that will require AI as a fundamental component. That’s one of the reasons why we invested in an AI factory,” noted the CEO, referencing the consortium-based investment in a Swedish AI Factory that was announced in late May. At the time, Ericsson noted that it planned to “leverage its data science expertise to develop and deploy state-of-the-art AI models – improving performance and efficiency and enhancing customer experience.

Ericsson is also building AI capability into the products sold to customers. “I usually use the example of link adaptation,” said Per Narvinger, the head of Ericsson’s mobile networks business group, on a call with Light Reading, referring to what he says is probably one of the most optimized algorithms in telecom. “That’s how much you get out of the spectrum, and when we have rewritten link adaptation, and used AI functionality on an AI model, we see we can get a gain of 10%.”

Ericsson hopes that AI will boost consumer and business demand for 5G connectivity. New form factors such as smart glasses and AR headsets will need lower-latency connections with improved support for the uplink, it has repeatedly argued. But analysts are skeptical, while Ericsson thinks Europe is ill equipped for more advanced 5G services.

“We’re still very early in AI, in [understanding] how applications are going to start running, but I think it’s going to be a key driver of our business going forward, both on traffic, on the way we operate networks, and the way we run Ericsson,” Ekholm said.

Europe Disappoints: In much of Europe, Ericsson and Nokia have been frustrated by some government and telco unwillingness to adopt the European Union’s “5G toolbox” recommendations and evict Chinese vendors. “I think what we have seen in terms of implementation is quite varied, to be honest,” said Narvinger. Rather than banning Huawei outright, Germany’s government has introduced legislation that allows operators to use most of its RAN products if they find a substitute for part of Huawei’s management system by 2029. Opponents have criticized that move, arguing it does not address the security threat posed by Huawei’s RAN software. Nevertheless, Ericsson clearly eyes an opportunity to serve European demand for military communications, an area where the use of Chinese vendors would be unthinkable.

“It is realistic to say that a large part of the increased defense spending in Europe will most likely be allocated to connectivity because that is a critical part of a modern defense force,” said Ekholm. “I think this is a very good opportunity for western vendors because it would be far-fetched to think they will go with high-risk vendors.” Ericsson is also targeting related demand for mission-critical services needed by first responders.

5G SA and Mobile Core Networks:  Ekholm noted that 5G SA deployments are still few and far between – only a quarter of mobile operators have any kind of 5G SA deployment in place right now, with the most notable being in the US, India and China.  “Two things need to happen,” for greater 5G SA uptake, stated the CEO.

  • One is mid-band [spectrum] coverage… there’s still very low build out coverage in, for example, Europe, where it’s probably less than half the population covered… Europe is clearly behind on that“ compared with the U.S., China and India.
  • The second is that [network operators] need to upgrade their mobile core [platforms]... Those two things will have to happen to take full advantage of the capabilities of the [5G] network,” noted Ekholm, who said the arrival of new devices, such as AI glasses, that require ultra low latency connections and “very high uplink performance” is starting to drive interest. “We’re also seeing a lot of network slicing opportunities,” he added, to deliver dedicated network resources to, for example, police forces, sports and entertainment stadiums “to guarantee uplink streams… consumers are willing to pay for these things. So I’m rather encouraged by the service innovation that’s starting to happen on 5G SA and… that’s going to drive the need for more radio coverage [for] mid-band and for core [systems].”

Ericsson’s Summary -Looking Ahead:

  • Continue to strengthen competitive position
  • Strong customer engagement for differentiated connectivity
  • New use cases to monetize network investments taking shape
  • Expect RAN market to remain broadly stable
  • Structurally improving the business through rigorous cost management
  • Continue to invest in technology leadership

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References:

https://www.ericsson.com/4a033f/assets/local/investors/documents/financial-reports-and-filings/interim-reports-archive/2025/6month25-en.pdf

https://www.ericsson.com/4a033f/assets/local/investors/documents/financial-reports-and-filings/interim-reports-archive/2025/6month25-ceo-slides.pdf

https://www.telecomtv.com/content/5g/ericsson-ceo-waxes-lyrical-on-potential-of-5g-sa-ai-53441/

https://www.lightreading.com/5g/ericsson-targets-big-huawei-free-places-ai-and-nato-as-profits-soar

Ericsson revamps its OSS/BSS with AI using Amazon Bedrock as a foundation

 

Ericsson revamps its OSS/BSS with AI using Amazon Bedrock as a foundation

At this week’s TM Forum-organized Digital Transformation World (DTW) event in Copenhagen, Ericsson has given its operations support systems (BSS/OSS) portfolio a complete AI makeover.  This BSS/OSS revamp aims to improve operational efficiency, boost business growth, and elevate customer experiences. It includes a Gen-AI Lab, where telcos can try out their latest BSS/OSS-related ideas; a Telco Agentic AI Studio, where developers are invited to come and build generative AI products for telcos; and a range of Ericsson’s own Telco IT AI apps. Underpinning all this is the Telco IT AI Engine, which handles various tasks to do with BSS/OSS orchestration.

Ericsson is investing to enable CSPs make a real impact with AI, intent and automation. AI is now embedded throughout the portfolio, and the other updates range across five critical, interlinked transformation areas within a CSP’s operational transformation, with each area of evolution based on a clear rationale and vision for the value it generates.  Ericsson sites several benefits for telcos:

  • Data – Make your data more useful. Introducing Telco DataOps Platform. An evolution from the existing Ericsson Mediation, the platform enables unified data collection, processing, management, and governance, removing silos and complexity to make data more useful across the whole business, and fuel effective AI to run their business and operations more smoothly.
  • Cloud and IT – Stay ahead of the business. Introducing Ericsson Intelligent IT Suite. A holistic end-to-end approach supporting OSS/BSS evolution designed for Telco scale to accelerate delivery, streamline operations, and empower teams with the tools to unlock value from day one and beyond. It enables CSPs to embrace innovative transformative approaches that deliver real-time business agility and impact to stay ahead of business demands in rapidly evolving OSS/BSS landscapes.
  • Monetization – Make sure you get paid. Introducing Ericsson Charging and Billing Evolved. A cloud-native monetization platform that enables real-time charging and billing for multi-sided business models. It is powered by cutting-edge AI capabilities that makes it easy to accelerate partner-led growth, launch and monetize enterprise services efficiently, and capture revenue across all business lines at scale.
  • Service Orchestration – Deliver as fast as you can sell. Upgraded Ericsson Service Orchestration and Assurance with Agentic AI: Uses AI and intent to automatically set up and manage services based on a CSP’s business goals, providing a robust engine for transforming to autonomous networks. It empowers CSPs to cut out manual steps and provides the infrastructure to launch and scale differentiated connectivity services
  • Core Commerce – Be easy to buy from. AI-enabled core commerce. Streamline selling with intelligent offer creation. Key capabilities include efficient offering design through a Gen-AI capable product configuration assistant and guided selling using an intelligent telco-specific CPQ for seamless ‘Quote to Cash’ processes, supported by a CRM-agnostic approach. CSPs can launch tailored enterprise solutions faster and co-create offers with partners all while delivering seamless omni-channel experiences

Grameenphone, a Bangladesh telco with more than 80 million subscribers is an Ericsson BSS/OSS customer. “They can’t do massive investments in areas that aren’t going to give a return,” said Jason Keane, the head of Ericsson’s business and operational support systems portfolio who noted the low average revenue per user (ARPU) in the Bangladeshi telecom market. The technologies developed by Ericsson are helping Grameenphone’s subscribers with top-ups, bill payments and operations issues.

“What they’re saying is we want to enable our customers to have a fast, seamless experience, where AI can help in some of the interaction flows between external systems.  “AI itself isn’t free.  You’ve got to pay your consumption, and it can add up if you don’t use it correctly.”

To date, very few companies have seen financial benefits in either higher sales or lower costs from AI. The ROI just isn’t there.  If organizations end up spending more on AI systems than they would on manual effort to achieve the same results, money would be wasted.  Another issue is the poor quality of telco data which can’t be effectively used to train AI agents.

Ericsson’ Booth at DTW Ignite 2025 event in Copenhagen

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Ericsson appears to have been heavily reliant on Amazon Web Services (AWS) for the technologies it is advertising at DTW this week. Amazon Bedrock, a managed service for building generative AI models, is the foundation of the Gen-AI Lab and the Telco Agentic AI Studio. “We had to pick one, right?” said Keane. “I picked Amazon. It’s a good provider, and this is the model I do my development against.”

Regarding AI’s threat to jobs of OSS/BSS workers, Light Reading’s Iain Morris, wrote:

“Wider adoption by telcos of Ericsson’s latest technologies, and similar offerings from rivals, might be a big negative for many telco operations employees.  At most immediate risk are the junior technicians or programmers dealing with basic code that can be easily handled by AI. But the senior programmers had to start somewhere, and even they don’t look safe. AI enthusiasts dream of what the TM Forum calls the fully autonomous network, when people are out of the loop and the operation is run almost entirely by machines.”

Ericsson has realized its OSS and BSS tools need to address the requirements of network operators that either already, or will in the near future, adopt cloud-native processes, run cloud-based horizontal IT platforms and make extensive use of AI to automate back-office processes and introduce autonomous network operations that reduce manual intervention and the time to address problems while also introducing greater agility (as long as the right foundations are in place).

Mats Karlsson, Head of Solution Area Business and Operations Support Systems, Ericsson says: “What we are unveiling today illustrates a transformative step into industrializing Business and Operations Support Systems for the autonomous age. Using AI and automation, as well as our decades of knowledge and experience in our people, technology, processes – we get results. These changes will ensure we empower CSPs to unlock value precisely when and where it can be captured. We operate in a complex industry, one which is evidently in need of a focus on no nonsense OSS/BSS. These changes, and our commitment to continuous evolution for innovation, will help simplify it where possible, ensuring that CSPs can get on with their key goals of building better, more efficient services for their customers while securing existing revenue and striving for new revenue opportunities.”

Ahmad Latif Ali, Associate Vice President, EMEA Telecommunications Insights at IDC says: “Our recent research, featured in the IDC InfoBrief “Mapping the OSS/BSS Transformation Journey: Accelerate Innovation and Commercial Success,” highlights recurring challenges organizations faced in transformation initiatives, particularly the complex and often simultaneous evolution of systems, processes, and organizational structures. Ericsson’s continuous evolution of OSS/BSS addresses these key, interlinked transformation challenges head-on, paving the way for automation powered by advanced AI capabilities. This approach creates effective pathways to modernize OSS/BSS and supports meaningful progress across the transformation journey.”

References:

https://www.ericsson.com/en/news/2025/6/evolved-ericsson-ossbss-portfolio-to-ignite-csp-business-and-operational-transformation

https://www.lightreading.com/oss-bss-cx/ericsson-goes-mad-for-ai-amid-fears-about-jobs-and-big-tech-power

https://www.telecomtv.com/content/telcos-and-ai-channel/ericsson-revamps-its-oss-bss-for-the-ai-era-53236/

McKinsey: AI infrastructure opportunity for telcos? AI developments in the telecom sector

Telecom sessions at Nvidia’s 2025 AI developers GTC: March 17–21 in San Jose, CA

Quartet launches “Open Telecom AI Platform” with multiple AI layers and domains

Goldman Sachs: Big 3 China telecom operators are the biggest beneficiaries of China’s AI boom via DeepSeek models; China Mobile’s ‘AI+NETWORK’ strategy

Generative AI in telecom; ChatGPT as a manager? ChatGPT vs Google Search

Allied Market Research: Global AI in telecom market forecast to reach $38.8 by 2031 with CAGR of 41.4% (from 2022 to 2031)

The case for and against AI in telecommunications; record quarter for AI venture funding and M&A deals

 

 

Omdia: Huawei increases global RAN market share due to China hegemony

Due to  China’s enormous mobile network market (where foreign vendors are mostly shut out), Huawei remained the world’s largest vendor of radio access network (RAN) equipment – a market worth about $35 billion last year – according to Omdia (an Informa owned company).  In 2023, the Chinese behemoth had a 31.3% share of the global RAN market.  Omdia says Huawei’s market share was up by an unspecified amount in 2024, due to “a more favorable regional mix as well as market share gains in emerging markets,” according to Remy Pascal,  principal analyst at Omdia.

Huawei recently reported a 22% increase in sales last year, to 860 billion Chinese yuan (US$ 118.6 billion), and it looks in better shape than its ailing western rivals. Its share of the global 5G networks market appears to have grown, according to the market research firm.

Omdia’s findings seems further to highlight the futility of U.S. sanctions against Huawei, originally imposed by Donald Trump in his first term as U.S. President and then expanded by President Joe Biden.

Image Credit: Huawei

China still lacks the ability to make the most advanced chips featuring the tiniest transistors. But technical workarounds or loopholes in trade rules have enabled Huawei to revive its smartphone business and remain competitive in networks. Late last year, telco executives who spoke on condition of anonymity said there had been no discernible impact on the quality of its products. And Ericsson continues to regard Huawei as its chief rival.

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“After two years of significant acceleration and exceptionally high investment in 2021 and 2022, and two years of steep decline in 2023 and 2024, Omdia expects 2025 to be a year of stabilization for the RAN market,” said Remy Pascal of Omdia. “Different regions will follow different trajectories, but at a global level, the market is expected to be flattish. North America has returned to growth in 2024 and we expect this to continue, we also expect a positive trajectory in some emerging markets.”

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Other results and forecasts from Omdia:

  • The total global RAN market (which includes hardware and software but not services) was just over $35 billion last year, which represented a 12 percent decline on the previous year.
  • There was a very slight drop in the aggregate market share of the top five RAN equipment vendors – Huawei, Ericsson, Nokia, ZTE and Samsung. In 2023, Omdia had that figure at about 95%.  In 2024, it was roughly 94%.
  • Ericsson was one of the main gainers last year thanks to its huge AT&T (non) OpenRAN contract.
  • As a result, Nokia lost market share in the U.S., but claims that its global RAN footprint grew by 18,000 sites in 2024.
  • Tejas Networks, an Indian RAN equipment vendor (not in the top five) that landed a large 4G contract with state-owned BSNL was another winner.
  • Global RAN revenue will be “essentially flat” this year and marked by “low single digit percentage growth” outside China.
  • A “positive trajectory” in emerging Asian markets as well as Africa, the Middle East and Latin America is forecast. Europe risks falling behind other parts of the world in mobile network markets.

Top RAN vendors, full year 2024 RAN revenue:

Global

Global ex-China

Huawei

Ericsson

Ericsson

Nokia

Nokia

Huawei

ZTE

Samsung

Samsung

ZTE

Top RAN vendors, full year 2024 RAN revenue, top 3 by region:

North America

Asia & Oceania 

Europe

Middle East and Africa

Latin America & the Caribbean

Ericsson

Huawei

Ericsson

Huawei

Huawei

Nokia

ZTE

Nokia

Nokia

Ericsson

Samsung

Ericsson

Huawei

Ericsson

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Dell’Oro Group’s most recent RAN report a few weeks ago stated that the global RAN market is expected to improve slightly over the short term, but the long-term outlook remains subdued.  “The underlying message we have communicated for some time has not changed,” said Stefan Pongratz, Vice President for RAN market research at Dell’Oro Group. “Regional imbalances will impact the market dynamics over the short term while the long-term trajectory remains flat. This is predicated on the assumption that new RAN revenue streams from private wireless and FWA, taken together with MBB-based capacity growth, are not enough to offset slower MBB coverage-based capex,” said Dell’Oro’s Stefan Pongratz.

References:

https://www.lightreading.com/5g/huawei-defies-us-to-grow-market-share-as-ran-decline-ends-omdia

https://www.telecoms.com/wireless-networking/omdia-expects-2025-to-be-a-year-of-stabilization-for-the-ran-market-

RAN Equipment Market to Remain Uninspiring, According to Dell’Oro Group

Network equipment vendors increase R&D; shift focus as 0% RAN market growth forecast for next 5 years!

Telco spending on RAN infrastructure continues to decline as does mobile traffic growth

vRAN market disappoints – just like OpenRAN and mobile 5G

Mobile Experts: Open RAN market drops 83% in 2024 as legacy carriers prefer single vendor solutions

 

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