Ericsson said it has won just 2 percent of the latest tender for 5G radio network equipment at China Mobile. The contract for the 700 MHz band is much less than the 11 percent share awarded the Swedish supplier in the previous tender for the 2.6 GHz band. Ericsson said this is likely a consequence of Sweden banning Chinese suppliers Huawei and ZTE from its 5G networks.
The total China Mobile contract was worth around USD 6 billion, sources familiar with the matter told Reuters. As is usual, the bulk of the contract went to Huawei and ZTE. However, Nokia reportedly scored its first 5G radio win in China and took 4 percent of the total value. A spokesperson said the company would comment further at its quarterly earnings report on 29 July.
Ericsson previously flagged the potential drop in Chinese business in its Q2 2021 financial report and in its 2020 annual report.
