Ericsson Russia Ericsson

Performance indicators

2022

Losses of 2.36 billion rubles

The net loss of the Russian subsidiary Ericsson in 2022 reached 2.36 billion rubles, while in 2021 there was a net profit of 533 million rubles. The company's revenue in comparison with the same periods decreased by 42% and amounted to 2.86 billion rubles. This is stated in the reporting, which was released in early May 2023.

According to TASS, citing Ericsson materials, the loss from the company's sales in 2022 turned out to be equal to 1.57 billion rubles, while a year earlier a profit of 863 million rubles was registered.

Ericsson's Russian division recorded an annual loss of 2.36 billion rubles

In February 2022, immediately after the outbreak of hostilities in Ukraine, Ericsson, which occupied up to 20% of the Russian telecommunications equipment market, stopped deliveries to the Russian Federation. In April 2022, the company announced the suspension of activities in the country "for an indefinite period." At the same time, the EU, within the framework of the fifth package of sanctions, banned the transfer of technologies and the supply of equipment and licenses for operators controlled by the state.

Subsequently, Ericsson decided that its customer support business in Russia would be sold to Soneric LLC, created in November 2022, due to sanctions. It is noted that the company was founded by immigrants from the official Ericsson Corporation AO and MTS. Among them are employees of the Russian office of Ericsson, who worked in the company for more than 10 years, and former top managers of MTS.

FG Finam analyst Leonid Delitsyn estimated the deal at 300 million rubles. Freedom Finance Global analyst Vladimir Chernov noted that the cost of such transactions is always conditional.

What kind of assets and contracts will be transferred to the Russian buyer is not specified, so it is not possible to assess their value. It can be assumed that the value of the transaction will be limited to $100-200 million, the expert argues.[1]

Loss of $130 million due to withdrawal from the Russian market

On July 14, 2022, Ericsson, three months after the announcement of its departure from the Russian market, spoke about the losses incurred by the company in connection with this forced decision.

This [withdrawal from the Russian market - approx. TAdviser] cost Ericsson 1.2 billion Swedish crowns (about $130 million at the exchange rate as of July 15, 2022), operations in Russia decreased by about so much, - said Ericsson CEO Borye Ekholm in an interview with Dagens Hyheter.

Ericsson loss of $130 million due to withdrawal from Russia

After losing such market share, the Swedish company will explore the possibility of restoring its position in China.

They have gone far ahead with 5G. Let's see if we can join them, "explained Ekholm.

As the Dagens Hyheter newspaper notes, Ericsson "is curtailing operations in Russia," the company itself previously spoke about the suspension of work.

The company's losses are also mentioned in its report for the second quarter. The suspension of the business affected sales, which cost 1.2 billion kronor, the document also says.

Sales in the field of digital services decreased due to the suspension of business in Russia, the report says.

Uncertainty related to the Russian market and the "changed sanctions landscape" have led to great uncertainty regarding other potential costs and consequences, the document says.

According to Ekholm, by mid-July 2022, the situation in global supply chains remains difficult, which leads to an increase in costs, but the company is making every effort to minimize this negative factor.

According to Kommersant, due to the adopted fifth package of sanctions against Russia, Russian state operators will not be able to use Ericsson  and Nokia equipment. These companies were the largest suppliers of equipment for mobile networks in Russia with shares of about 20% and 30-40%, respectively.^[2]

2019: Revenue - RUB 4.65 billion (-5%)

At the end of 2019, Ericsson (Ericsson Corporation JSC) took 33rd place in the TAdviser Ranking: the 50 most profitable representative offices of foreign IT companies in Russia. The company's revenue for the year amounted to 4,652,797 thousand rubles, which is 5% lower than in 2018.

2018: Revenue - 4.9 billion rubles

The revenue of Ericsson Corporation JSC at the end of 2018 amounted to 4,903,205 thousand rubles.

History

2024: Moscow Court approves recovery of 380 thousand euros from Ericsson due to short supply of Tele2 equipment

On January 16, 2024, the Ninth Arbitration Court of Appeal partially satisfied Tele2's claim, in which the Russian mobile operator initially asked to recover 4.1 million euros from Ericsson for the underdelivery of telecommunications equipment. The amount approved by the court turned out to be significantly lower than the requested amount - 380.1 thousand euros in rubles at the exchange rate of the Bank of Russia on the day of payment.

According to Interfax, citing the operative part of the ruling on the court's website, when considering the case under the rules of first instance, it overturned the decision of the Moscow Arbitration Court, which on August 31, 2023 also partially satisfied the claim of T2 Mobile LLC. The operative part of the decision spoke of collecting 490.7 thousand and euros from Satel TVK LLC (which supplied Ericsson equipment to Tele2), and in full text - about 380.1 thousand. euro.

The court partially satisfied Tele2's claim against Ericsson

The operative part of the court decision announced during the court session does not correspond to the full text of the judicial act, the court made a change in the content of the adopted judicial act, which is a significant violation of the rules of procedural law, the ruling of the appeal, which leads the agency.

In this regard, the Court of Appeal in December 2023 decided to consider the dispute on the rules of the first instance. Tele2 clarified to Interfax that the lawsuit was filed due to the refusal of companies to fulfill their obligations to supply equipment. Most of the under-delivered equipment refers to orders made long before the imposition of sanctions, the Russian telecommunications company added.

Tele2 demands to recover from the defendants - Satel TVK LLC and Ericsson Corporation JSC. - fines and penalties, as well as oblige them to fulfill the terms of contracts.^[3]

2023

The court banned Ericsson from supplying equipment to Russia

At the end of September 2023, it became known that the Swedish authorities banned Ericsson from shipping telecommunications equipment to Russian customers. This is stated in the court decision on the claim of the Tele2 operator against Satel TVK LLC, the supplier of Ericsson decisions.

As follows from the materials of the case, due to the introduced legal ban, Ericsson AB was deprived of the opportunity to export its equipment to Russia. Moreover, this applies not only to orders from Satel TVK LLC, but also to any other company that supplies devices to Russian customers. Moreover, it is said that even the equipment that has already been produced for subsequent delivery to Satel TVK LLC cannot be exported to Russia.

Swedish authorities ban Ericsson from shipping telecommunications equipment to Russian customers

According to the Vedomosti newspaper, the Tele2 operator filed a lawsuit against Ericsson in November 2022: the operator demanded to supply the equipment under the contract of 2014, pay a penalty of €4.1 million, and also recover an astrent from the Swedish company (a penalty for failure to comply with a judicial act regarding the supply of equipment). However, the Russian arbitration court declared Ericsson's obligations invalid, since the company cannot fulfill them due to the restrictions imposed.

The introduction of trade restrictions and sanctions, as well as a direct ban on Ericsson AB, led to the objective impossibility of importing controversial equipment into the territory of the Russian Federation, as well as the impossibility of fulfilling the framework agreement, which could not be foreseen by the parties when concluding the agreement, - noted in court documents.

At the same time, the court recovered a penalty from Satel TVK LLC in favor of Tele2 for violation of the delivery time in the amount of €380 105. In addition, the defendants will have to pay a state fee of 200,000 rubles.^[4]

Russian Tele2 sued 0.5 million euros from Ericsson for breaking the contract

At the end of August 2023, the Moscow Arbitration Court partially satisfied the claim of T2 Mobile LLC against the Russian subsidiary Ericsson and the equipment supplier of the Swedish company. The complaint was filed due to the refusal of the defendants to fulfill their obligations to supply equipment.

According to Interfax with reference to the operative part of the decision posted on the court's website, it was decided to recover from Satel TVK LLC in favor of T2 Mobile LLC in rubles at the exchange rate of the Central Bank of the Russian Federation on the day of payment under the framework contract for the supply and provision of services dated July 30, 2014 a penalty of 490.7 thousand euros, as well as expenses for the payment of state duty in the amount of 200 thousand rubles. The lawsuit was filed on November 9, 2022. The defendants are two legal entities: Satel TVK LLC and Ericsson Corporation JSC.

Russian Tele2 sued 0.5 million euros from Ericsson for breaking the contract

According to Sheets"," Tele2 planned to install 50,000 -ready 5G Ericsson Radio System base stations in 27 regions, Russia including the Moscow and Leningrad regions, by 2023. The project was supposed to allow Tele2 to increase the data transfer rate, prepare for the launch of the 5G standard. Ericsson did not provide part of the equipment, citing sanctions and the revocation of export licenses. Ericsson received less than $130 million due to the withdrawal from the Russian market, follows from the financial report of the telecommunications equipment manufacturer for the second quarter of 2022.

Our claims include recovery of penalties for late deliveries, fulfillment of obligations for shipment of equipment, as well as recovery of penalties in case of failure to comply with a court decision. Despite the willingness to find a compromise solution with a former partner, following the results of eight-month negotiations, Tele2 did not receive constructive proposals to resolve the situation, Tele2 told the publication.[5]

Declaring the import of components for 20 thousand base stations Ericsson

Established in February 2023, Makscomm declared components for import into Russia for 20 thousand multi-standard receiving and transmitting base communication stations manufactured by Ericsson. On May 3, 2023, the Kommersant newspaper writes about this with reference to the Unified Register of Certificates of Conformity and Declarations of Conformity (led by Rosaccreditation).

According to the top manager of one of the telecommunications equipment vendors contacted by the publication, the purchase of such a quantity of equipment can cost $30-40 million. As the deputy head of the NTI Competence Center on the basis of Skoltech for wireless communications and the Internet of Things Alexander Sivolobov clarified, such a number of base stations annually from 2019 to 2021. purchased each mobile operator.

Established in February 2023, Makscomm LLC declared the import of components into Russia for 20 thousand communication base stations of the Swedish Ericsson

A source Kommersant in the telecommunications equipment market suggested that the equipment is supplied to Russia not directly by the vendor, but through brokers.

It is possible that the equipment was bought from one of the intermediaries. But this does not remove the issue of activation: it is necessary that the vendor transfers HWAC - Hardware Activation Code to the final buyer, the source said.

You will need Ericsson permission to activate this hardware. It is not yet clear if Makscomm has these necessary licenses. There are no bans from the EU and sanctions for the supply of such equipment to private Russian organizations by early May 2023, the newspaper notes.

According to the author of the Telegram channel "Telekommunalka" Alexei Slukin, part of the purchased Ericsson equipment can be delivered to the LPR, DPR, Lugansk and Kherson regions. In the current situation, the scale of supply is comparable to the annual construction volume for the big four telecom operators, he added.^[6]

2022

Transfer of Russian business to local management

On December 15, 2022, Ericsson announced the transfer of Russian business to local managers. Financial and other parameters of the transaction are not specified.

The press release only says that the Russian management will receive from Ericsson some assets and contracts, which ones are not specified.

Ericsson transferred Russian business

It is also emphasized that the agreement does not apply to the export of equipment, software or related services to Russia. As part of the deal, about 40 employees of Ericsson's Russian office will move to a company that will be owned by managers.

As noted in a press release, in 2023 Ericsson expects to have a small presence in the Russian market. A legal entity owned by Ericsson will continue to be registered in the Russian Federation to complete the liquidation and fulfillment of legal, contractual and administrative requirements.

Earlier in 2022, against the background of the Russian military special operation in Ukraine, Ericsson and Nokia, one of the world's largest manufacturers of telecommunications equipment, announced the termination of activities in the Russian Federation. Mobile Research Group analyst Eldar Murtazin believes that Rostelecom, Tele2, Voentelecom and Transtelecom will suffer from this - they focused on European manufacturers, and unlike other operators, they did not differentiate suppliers.

According to the expert, functionally, the equipment of Chinese manufacturers is no worse, and in the case of Ericsson, it is also significantly cheaper. However, the Swedish company, trying to cope with the reduction in market share caused, among other things, by attacks by the American authorities, made offers to operators with "very significant discounts, in the segment of base stations their offers were three times lower than the market, this was due to the choice in favor of Ericsson," Murtazin added.^[7]

Ericsson filed the first lawsuit due to refusal to supply telecom equipment to Russia

On November 11, 2022, it became known that the first lawsuit was filed against Ericsson due to the refusal to supply telecommunications equipment to Russia. The mobile operator Tele2 decided to sue the Swedish company.

According to Vedomosti, the defendant in the case, in addition to Ericsson, is also the Russian company Satel TVK, which supplied Tele2 with Ericsson equipment. The lawsuit followed "due to the refusal of companies to fulfill their obligations to supply equipment," he explained.

Mobile operator Tele2 decided to sue Ericsson

Moreover, most of the underdelivered equipment refers to orders made long before the imposition of sanctions, - said the representative of Tele2 in a conversation with the newspaper.

According to him, the company demands to oblige the defendants to fulfill the terms of contracts under which the partners previously reached agreements. Tele2 demands to recover fines and penalties from the defendants, as well as oblige them to fulfill the terms of the contracts. The amount of the fine in the company is not disclosed.

Tele2 added that despite the readiness to compromise, following the results of eight-month negotiations, the operator "never received constructive proposals to resolve the situation" from the former partner. The amount of the claim in the company did not disclose.

In May, the operator also filed a lawsuit against the Russian subsidiary Nokia demanding to recover 478 million rubles. due to withdrawal from the Russian market. The court rejected a request to seize the company's accounts as interim measures. The court postponed the meetings several times - the next consideration of the case is scheduled for the second half of December 2022, the publication reports.

Ericsson's share in the Russian telecom equipment market at the time of leaving the Russian market was about 20%. The company collaborated with the largest operators in Russia.^[8]

Ericsson will retain a small presence in Russia in 2023

Ericsson, against the background of the Russian-Ukrainian conflict, which decided to curtail business in Russia by the end of 2022, will have an insignificant presence in the country in 2023. This is stated in the answers to Ericsson's questions about work in Russia, published on its corporate website. The company expects that in 2023, before the final departure from the country, it will continue to close its various obligations, including legal and administrative.

As of November, Ericsson is in the process of winding down Russian business, and in order to make its exit from local telecommunications networks, which are critical infrastructure, "responsibly and in accordance with sanctions," the company received a number of exceptions to sanctions from the Swedish authorities, valid until the end of 2022.

In particular, she is allowed to provide technical assistance and supply software for civilian public telecommunications networks.

If the supplied products or services qualify as having a "dual purpose," the company also needs to obtain a special export license confirming that the supply is intended for civil use.

Ericsson will have to finish some things in Russia in 2023 "(photo - REUTERS/Olof Swahnberg)"

It is possible that Ericsson in Russia will have to stay until 2023, including in connection with legal proceedings. So, on November 9, 2022, a lawsuit was registered in the file of arbitration cases from its partner, an operator Tele2 (represented by T2 Mobile) controlled by the "Case. To Rostelecom^[9]The latter was previously included in the sanctions lists, and USA its president - Mikhail Oseevsky under EU sanctions.

At the time of publication of the material, Tele2 could not clarify TAdviser, what is the reason for its appeal to the court, and what are the claims against Ericsson.

In 2021, Ericsson reported that Tele2 would install another 50,000 5G-ready base stations of Ericsson Radio System in 27 regions of Russia, including the Moscow and Leningrad regions. Thus, the partners supplemented the agreement of 2019 on the installation of 50 thousand Ericsson base stations and doubled the initial plans for the development of the network by 2023.

Dismissal of 400 employees in Russia and loss of $81 million to curtail business

At the end of September 2022, Ericsson CEO Borje Ekholm announced the dismissal of 400 employees in Russia. The Swedish company is reducing its staff as part of the process of closing its Russian business.

Шаблон:Quote 'We explained to them the process of orderly closure, and now they are leaving our organization in stages by the end of 2022, he said.

Ericsson CEO Borje Ekholm announced the dismissal of 400 employees in Russia

Ericsson itself confirmed at the end of September 2022 that the company will gradually curtail its activities in Russia as it fulfills its obligations to customers in the coming months. Ericsson promised full financial and social support to employees of the Russian representative office of the company in the process of closing the business.

As Reuters reminds, Ericsson suspended its activities in Russia in April 2022, and a few months later - in August - announced its withdrawal from the Russian market in the coming months. The winding up of the business cost the Swedish company 900 million kronor (about $81 million), the news agency said.

Borye Ekholm explained that closing a business in the Russian Federation overnight is "very difficult, since telecommunications networks are a critical infrastructure." Authorities in Sweden and the European Union have granted exceptions to Ericsson and other companies for hardware and software technical support services that are needed to service civilian telecommunications networks.

The CEO of Ericsson said the relaxations would end by the end of 2022 and were "consistent with our humanitarian commitments."

{{quote 'Western governments clearly understand the importance of maintaining Internet access and information flow for the people of Russia. Therefore, we are doing everything necessary to maintain civil networks in accordance with the current sanctions, "said Ekholm^[10]} }}

Maintaining Software Technical Support in Russia

On September 23, 2022, updated information appeared about the work of Ericsson in Russia. The company stopped exporting equipment, but continued to provide technical support to customer users of its software.

In accordance with the sanctions, we provide software and technical support for those products that we supplied before the special operation, which allows us to leave, fulfilling contractual obligations... When the sanctions were announced, we stopped deliveries to customers in Russia, - quotes Reuters as a representative of Ericsson on September 23, 2022.

Ericsson retained technical support in Russia, but stopped exporting equipment to the country

On the same day, but a little earlier, Swedish national broadcasting news service Sveriges Radio Ekot reported that Ericsson had applied for 12 sanctions relief permits to the Strategic Products Inspectorate and received seven permits. The media read that this is how the company wants to supply equipment to the Russian Federation, which can also be used for military purposes. But Ericsson explained that the permissions relate only to software and technical support.

Despite the fact that mobile telephony is intended for civilian use, an export license is required mainly because of the advanced encryption technology built into our products, and this applies to all countries, "said a company representative.

According to two analysts cited by Reuters, Russia-related news does not promise Ericsson anything good, given that a few months ago - in February 2022 - the company was at the center of a big scandal. Then it was reported that Ericsson representatives paid the Islamic State terrorist organization banned in the Russian Federation for the supply of equipment to Iraq. After that, the value of the company's shares collapsed by a third.^[11]

Closing of representative office in Russia and dismissal of all employees

On August 22, 2022, Ericsson notified the Russian office of its closure and dismissal of all employees there. Informed sources told Kommersant about this. According to them, the representative office of the Swedish telecommunications equipment manufacturer will be closed until the end of 2022. The reductions will include those employees of the company who are engaged in supporting equipment on the networks of telecom operators.

Ericsson told the newspaper that "as obligations to customers are fulfilled" in the coming months, the company will gradually curtail its activities in the Russian Federation, promising "financial and social" support to employees.

Ericsson closes its representative office in Russia

At first, telecom operators will use previously purchased spare kits, but they are not unlimited, they told the publication in Rostec"." The most critical may be the termination of technical support for software base stations and other Ericsson equipment, the state corporation added.

However, a top manager of a large equipment manufacturer told the newspaper that Ericsson could allocate a support service to an independent legal entity, the founders of which will be management. This version was confirmed by the source of the publication in one of the operators.

On the other hand, the operators had enough time to learn how to operate networks without Ericcson technical support, "said one of the interlocutors.

But problems can arise if the operator does not have spare parts for base stations, because it is no longer possible to get them from Ericsson under warranty.

According to Kommersant, which is cited on August 29, 2022, Ericsson's share in the Russian market is about 20%. The company collaborated with the largest telecom operators in Russia.^[12]

Suspension of activities in Russia

From April 11, 2022, the Swedish telecommunications company Ericsson decided to suspend activities in Russia for an indefinite period. The manufacturer of equipment for telecom operators has already made $95 million in losses in its report for the first quarter of 2022. This amount includes "impairment of assets and other exclusive expenses," but does not take into account the cost of benefits payments in case of possible layoffs of personnel. So far, Ericsson has decided to put workers on paid leave.

At the end of February [2021 - approx. TAdviser] Ericsson suspended all deliveries to customers in Russia. In light of recent events and EU sanctions, the company will now indefinitely suspend its activities with customers in Russia. Ericsson is discussing suspending work with customers and partners, the company said in a statement.

Ericsson lost $95 million in Q1 alone due to withdrawal from the Russian market

According to Businessman"" in April 2022, the largest European suppliers of equipment for mobile networks in Russia were Ericsson, whose market share was 20%, the Finnish Nokia and from 30-40%. But in recent years, their numbers have fallen under Chinese pressure. Huawei After the start of the special operation on To Ukraine Ericsson and Nokia, they suspended work in Russia.

As a spokesman for Ericsson told AFP, by April 2022 the company has about 600 employees in Russia, Ericsson is a major supplier of equipment for MTS and Tele2. Russia and Ukraine account for less than 2% of the Swedish vendor's revenue, he added.

The fifth package of EU sanctions, adopted in April 2022, banned the supply of technologies in Russia for civil communication networks, if they are the property of an organization under state control. According to the senior lawyer of the Delcredere Bar Association Nikita Tyurin, this means the final freeze on the transfer of technology to telecommunications state-owned companies.

If earlier the ban suggested the possibility, as an exception, of obtaining permission to export goods for use in the operation of telecom networks, now the condition has been added that networks cannot belong to a state-controlled company, he explained to Kommersant[13][14]

Termination of deliveries to the Russian Federation

At the end of February 2022, Ericsson stopped the supply of equipment to Russia amid sanctions against the country, which were introduced by the United States and the European Union after the start of a special operation.

Ericsson urgently analyzes the imposed sanctions. The company decided to suspend all deliveries to customers in Russia while we analyze. It is too early to talk about how Ericsson may be affected by economic sanctions against Russia, and we refrain from further comments on this matter, the Ericsson press service quoted TASS as saying.

The agency notes that the solutions of the Swedish company are widely used in Russia. Thus, since 2020, MTS has been using 5G-ready equipment and Ericsson technologies to modernize 2G/3G/4G networks. Until 2023, Ericsson, based on the Tele2 network, planned to deploy more than 100 thousand Ericsson Radio System base stations throughout Russia.

MegaFon told Kommersant that Ericsson's decision "will not affect the company."

In the near future, we did not plan large joint projects, the company said.

MTS, Rostelecom, VimpelCom and Tele2 declined to comment on the publication's requests. A newspaper source in one of the companies notes that so far we are talking about the suspension of supplies, and not about their complete termination. According to Kommersant, by February 2022, Ericsson products account for about 20% of the Russian market for equipment for communication networks.

The lack of new supplies of Ericsson equipment will complicate both the continuation of the construction of coverage and the enhancement of cellular networks in Russia, as well as the maintenance of the 2G, 3G, 4G equipment already deployed over decades, said MForum Analytics analyst Aleksei Boyko. In his opinion, the equipment of the Western vendor will have to be replaced in the future by Huawei or ZTE.^[15][16]

2019

Launch of a 5G pilot zone in the center of Moscow together with Tele2

On August 8, 2019, Tele2 announced that, together with Ericsson, it had launched a 5G pilot zone in Russia in the center of Moscow. The companies have deployed solid outdoor coverage of an experimental section of the network in the 28 GHz range on Tverskaya Street. Read more here.

1 billion rubles for the opening of the 5G innovation center in Moscow

On May 21, 2019, it became known that Ericsson opened the 5G Innovation Center in Moscow. The center is located at Ericsson headquarters in Russia (Moscow, Metropolis business center) and combines a test laboratory, Ericsson Academy and a demo studio with modern equipment and company solutions in the field of 5G and IoT. In 2019-2021 a total of 1 billion rubles will be invested in the project .

In 2019, the laboratory will conduct tests and adaptation to the Russian requirements of the following set of solutions:

• Testing 5G scenarios on the working network, ensuring certification of modern world technologies in the field of 5G equipment and software for the Russian market;
• Testing of user 5G devices in the network together with operators and manufacturers;
• Piloting promising technologies for Russian operators, such as: Fixed Wireless Access, Spectrum sharing between technologies, private LTE and 5G networks, remote control of unmanned vehicles and many others.

Sebastian Tolstoy commented on the discovery:

[[:Шаблон:Quote 'author = Sebastian Tolstoy, President of Ericsson in Russia]]

The test laboratory has fully installed integrated basic network elements, GSM WCDMA, LTE, deployed a permanent end-to-end (e2e) network, including 5G Radio, 5G Core device controllers on sites, systems/, OSSBSS including Ericsson Network Management, private LTE networks, Automatic Acceptance Testing (Automatic Acceptance Testing), VoLTE technologies are implemented and. NB-IoT Network health is provided in a continuous mode (24/7), which allows tests to be carried out as quickly as possible, support most possible scenarios and organize remote demonstrations using Ericsson hardware platforms and major server equipment suppliers. The Innovation Center has a demo studio, which demonstrates new items of greatest interest to Russian customers.

Ericsson Academy is part of the 5G Innovation Center, on the basis of which trainings are held for more than 1000 specialists of Russian operators and students annually. During the trainings, employees of cellular operators are trained on equipment that is installed or planned for installation in Russian mobile networks.

Agreement with NVision Group to build LTE corporate networks in Russia

On February 25, 2019, the company NVision Group"" announced the beginning of activities to build Russia in corporate networks, LTE which will become the technological base for the digitalization of large business in the country. Integrator Partner -. Ericsson More. here

2017: New CEO - Sebastian Tolstoy

In July 2017, Ericsson announced the appointment of Sebastian Tolstoy as head of the company's division in Russia. He is responsible for the development of Ericsson's new strategy aimed at strengthening the company's technological leadership in the market, increasing profitability and ensuring the success of the business of customers and partners. Zoran Lukovich, who headed the company in Russia before Tolstoy, continued to work at Ericsson. He still has the area of ​ ​ responsibility for business development with telecom operators in Russia. Read more about the new CEO here.

2015:30% drop in sales in Russia

Ericsson notes that at the end of 2015, sales in Russia amounted to 4.7 billion crowns ($550 million), while in 2014 they amounted to 6.7 billion crowns ($785 million).^[17]

2014: Ericsson's revenue in Russia exceeded $800 million

At the end of 2014, the Middle East showed the largest increase in Ericsson sales (by 22%). In Central and Western Europe, the telecom equipment manufacturer's revenue jumped 7%, in Northern Europe and Central Asia - 6%.

Ericsson includes Russia as the latest region, where the company has made good money due to the growing investment of operators in mobile broadband networks. In 2014, the Swedish vendor's revenue in Northern Europe and Central Asia was measured at 12.4 billion crowns ($1.5 billion), where the Russian market accounted for an income of just over $800 million.

2012: Dmitry Maselsky - head of the company in Russia

At the end of September 2012, it became known about the appointment of Dmitry Maselsky to the post of general director of the office of Ericsson, Russia. in this post, he replaced Maria Radke, who will continue to work for the company as Ericsson's chief financial officer in the Northern Europe and Central Asia region.

2011

Transfer of the platform to ZAO "Sphere" for the creation of "System 112"

In 2011, Ericsson transferred its technological platform CoordCom to the Russian company Sphere to adapt and create System 112 in Russia for rescue and emergency response services. Read more here.

Ericsson switches serve over 40% of telephone traffic in Russia

In 2011, almost every third mobile call in Russia is carried out using certain Ericsson technologies. Ericsson switches serve over 40% of all national and international telephone traffic in Russia. Ericsson is a key provider of advanced solutions for the booming ICT sector in Russia.

Agreement with Skolkovo

In 2011, Ericsson entered into a partnership agreement with the Skolkovo Foundation, under which Ericsson creates its own design-oriented Development Center on the territory of the innograd, and will also support the educational programs of the Skolkovo Institute of Technology.

2010:400 employees in Russia

In 2010, three regional offices of Ericsson in Russia (located in Moscow, St. Petersburg and Krasnoyarsk) have more than 400 employees.

Ericsson delivered over 50 thousand base stations to Russia and the CIS countries (as of August 2010). In Russia alone, Ericsson base stations provided over 150 billion minutes of voice traffic in 2009.

1996: Opening of a training center in Moscow on the basis of MTUSI

In 1996, Ericsson opened its Training Center in Moscow in close partnership with the Moscow Technical University of Communications and Informatics (MTUSI). By 2011, over 20,000 ICT specialists had been trained at the Centre.

1994: Reopening in Russia

On November 16, 1994, Ericsson officially opened its representative office in Russia again in the form of the Eriksson Corporation AO enterprise with 100% Swedish capital.

1917: Ericsson considers moving headquarters to Petersburg

By 1917, Ericsson's St. Petersburg factory had become Ericsson's largest manufacturing facility in the world. Cooperation with Russia was so successful that the founder of the company, Lars Magnus Ericsson, seriously thought about moving the company's headquarters to St. Petersburg. And although the revolution prevented the implementation of this plan, Ericsson's cooperation with Russia continued in subsequent years.

1897: Ericsson's first foreign factory opens in Russia

One of the biggest milestones in establishing partnerships between Russia and Ericsson was the opening in 1897 of the first foreign factory of L.M. Ericsson, a telephone plant with a full production cycle in St. Petersburg.

1881: Business start-up in Russia

Ericsson's history in Russia began on November 15 (in a new style) in 1881: it was on this day that Ludwig Nobel (brother and business partner of Alfred Nobel) signed a contract for the purchase of several telephones and a switch for the offices of the St. Petersburg company Nobel Brothers Oil Production Partnership from Lars Magnus Ericsson.

The deal with Ludwig Nobel was followed by the construction of the first telephone exchange in Russia - in Kyiv (1893), then in Kharkov (1896), Rostov (1897), Riga, Kazan and Tiflis (1900) and Moscow (1904).

Notes