Acquisitions and cooperation
Around 2000, companies and governments began to push for standards for mobile Internet. In May 2000, the European Commission created the Wireless Strategic Initiative, a consortium of four telecommunications suppliers in Europe – Ericsson, Nokia, Alcatel (France) and Siemens (Germany) – to develop and test new prototypes for advanced wireless communications systems. Later that year, the consortium partners invited other companies to join them in a Wireless World Research Forum in 2001. In December 1999, Microsoft
and Ericsson announced a strategic partnership to combine the former's web browser and server software with the latter's mobile-internet technologies. In 2000, the Dot-com bubble burst with marked economic implications for Sweden. Ericsson, the world's largest producer of mobile telecommunications equipment, shed thousands of jobs, as did the country's Internet consulting firms and dot-com start-ups. In the same year, Intel, the world's largest semiconductor chip manufacturer, signed a $1.5 billion deal to supply flash memory to Ericsson over the next three years.
The short-lived partnership, called Ericsson Microsoft Mobile Venture, owned 70/30 percent by Ericsson and Microsoft respectively, ended in October 2001 when Ericsson announced it would absorb the former joint venture and adopt a licensing agreement with Microsoft instead. The same month, Ericsson and Sony announced the creation of the mobile phone manufacturing joint venture: Sony Ericsson Mobile Communications. Ten years later, in February 2012, Ericsson sold its stake in the joint venture; Ericsson said it wanted to focus on the global wireless market as a whole.
Lower stock prices and job losses affected many telecommunications companies in 2001. The major equipment manufacturers – Motorola (U.S.), Lucent Technologies (U.S.), Cisco Systems (U.S.), Marconi (UK), Siemens (Germany), Nokia (Finland), as well as Ericsson – all announced job cuts in their home countries and subsidiaries around the world. Ericsson's workforce worldwide fell during 2001 from 107,000 to 85,000.
In September 2001, Ericsson purchased the remaining shares in EHPT from Hewlett-Packard. Founded in 1993, Ericsson Hewlett Packard Telecom (EHPT) was a joint venture made up of 60% Ericsson interests and 40% Hewlett-Packard interests.
In 2002, ICT investor losses topped $2 trillion and share prices fell by 95% until August that year. More than half a million people lost their jobs in the global telecom industry over the two years. The collapse of U.S. carrier WorldCom, with more than $107 billion in assets, was the biggest in U.S. history. The sector's problems caused bankruptcies and job losses, and led to changes in the leadership of several major companies. Ericsson made 20,000 more staff redundant and raised about $3 billion from its shareholders. In June 2002, Infineon Technologies (then the sixth-largest semiconductor supplier and a subsidiary of Siemens) bought Ericsson's microelectronics unit for $400 million.
Ericsson was an official backer in the 2005 launch of the .mobi top-level domain created specifically for the mobile internet.
Co-operation with Hewlett-Packard did not end with EHPT; in 2003 Ericsson outsourced its IT to HP, which included Managed Services, Help Desk Support, Data Center Operations, and HP Utility Data Center. The contract was extended in 2008. In October 2005, Ericsson acquired the bulk of the troubled UK telecommunications manufacturer Marconi Company, including its brand name that dates back to the creation of the original Marconi Company by the "father of radio" Guglielmo Marconi. In September 2006, Ericsson sold the greater part of its defense business Ericsson Microwave Systems, which mainly produced sensor and radar systems, to Saab AB, which renamed the company to Saab Microwave Systems.
In 2007, Ericsson acquired carrier edge-router maker Redback Networks, and then Entrisphere, a US-based company providing fiber-access technology. In September 2007, Ericsson acquired an 84% interest in German customer-care and billing software firm LHS, a stake later raised to 100%. In 2008, Ericsson sold its enterprise PBX division to Aastra Technologies, and acquired Tandberg Television, the television technology division of Norwegian company Tandberg.
In 2009, Ericsson bought the CDMA2000 and LTE business of Nortel's carrier networks division for US$1.18 billion; Bizitek, a Turkish business support systems integrator; the Estonian manufacturing operations of electronic manufacturing company Elcoteq; and completed its acquisition of LHS. Acquisitions in 2010 included assets from the Strategy and Technology Group of inCode, a North American business and consulting-services company; Nortel's majority shareholding (50% plus one share) in LG-Nortel, a joint venture between LG Electronics and Nortel Networks providing sales, R&D and industrial capacity in South Korea, now known as Ericsson-LG; further Nortel carrier-division assets, relating from Nortel's GSM business in the United States and Canada; Optimi Corporation, a U.S.–Spanish telecommunications vendor specializing in network optimization and management;< and Pride, a consulting and systems-integration company operating in Italy.
In 2011, Ericsson acquired manufacturing and research facilities, and staff from the Guangdong Nortel Telecommunication Equipment Company (GDNT) as well as Nortel's Multiservice Switch business. Ericsson acquired U.S. company Telcordia Technologies in January 2012, an operations and business support systems (OSS/BSS) company. In March, Ericsson announced it was buying the broadcast-services division of Technicolor, a media broadcast technology company. In April 2012 Ericsson completed the acquisition of BelAir Networks a strong Wi-Fi network technology company.
On 3 May 2013, Ericsson announced it would divest its power cable operations to Danish company NKT Holding. On 1 July 2013, Ericsson announced it would acquire the media management company Red Bee Media, subject to regulatory approval. The acquisition was completed on 9 May 2014. In September 2013, Ericsson completed its acquisition of Microsoft's Mediaroom business and televisions services, originally announced in April the same year. The acquisition makes Ericsson the largest provider of IPTV and multi-screen services in the world, by market share; it was renamed Ericsson Mediaroom. In September 2014, Ericsson acquired majority stake in Apcera for cloud policy compliance. In October 2015, Ericsson completed the acquisition of Envivio, a software encoding company. In April 2016, Ericsson acquired Polish and Ukrainian operations of software development company Ericpol, a long-time supplier to Ericsson. Approximately 2,300 Ericpol employees joined Ericsson, bringing software development competence in radio, cloud, and IP.
On 20 June 2017, Bloomberg disclosed that Ericsson hired Morgan Stanley to explore the sale of its media businesses. The Red Bee Media business was kept in-house as an independent subsidiary company, as no suitable buyer was found, but a 51% stake of the remainder of the Media Solution division was sold to private equity firm One Equity Partners, the new company being named MediaKind. The transaction was completed on 31 January 2019. In February 2018, Ericsson acquired the location-based mobile data management platform Placecast. Ericsson has since integrated Placecast's platform and capabilities with its programmatic mobile ad subsidiary, Emodo. In May 2018, SoftBank partnered with Ericsson to trial new radio technology. In September 2020, Ericsson acquired US-based carrier equipment manufacturer Cradlepoint for $1.1 billion.
In November 2021, Ericsson announced it had reached an agreement to acquire Vonage for $6.2 billion. The acquisition completed in July 2022. In January 2024, Ericson and MTN Group announced expansion of their partnership to boost their mobile financial services on Africa market, as the company appointed Michael Wallis-Brown as vice president responsible for global mobile financial services.
In December 2024, Ericsson secured a multi-year extension deal worth billions with Bharti Airtel for the provision of 4G and 5G radio access network products and solutions. This agreement underscores the growing demand for advanced telecommunications infrastructure as the industry transitions to 5G technologies.
In January 2026, Ericsson announced a plan to return 15 billion Swedish crowns ($1.7 billion) to investors through its first share buyback programme.
