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Ekholm has stabilized Ericsson, but he is placing too many hopes on 5G

Ericsson’s CEO Borje Ekholm has hardly set the world on fire with his policies since taking the helm 15 months ago. He has mainly focused on retrenching to the troubled company’s core markets, dialling back on the expansionist policies of his predecessor Hans Vestberg. While Vestberg saw the pursuit of new markets, such as media and cloud, as the answer to the intense pressures and competition in the traditional network equipment space, Ekholm has placed his hopes on an uptick from 5G and associated services, and on slashing Ericsson’s costs. These have been reduced by SEK6bn ($718m) in the past year, and the firm plans SEK10bn of annual savings by mid-2018, compared with its costs at the start of 2017.…

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