Former CEO of Swedish investment firm Investor AB, Börje Ekholm was appointed head of Ericsson in 2017. Founded in 1876 in Stockholm, the company was in flames at the time. In four years, the Swedish telecommunications giant has established itself as one of the leaders in 5G, alongside the Chinese Huawei, and ahead of the Finnish Nokia. In 2020, its sales exceeded 22 billion euros, of which more than 70% were made in the supply of next-generation network equipment. Swedish, Börje Ekholm, 58, lives in the United States.
How is the deployment of 5G progressing in Europe?
Europe is very late. This was already the case for 4G, which may explain why we do not have a European digital champion. The major platforms are almost all American or Chinese, two regions where 4G was first deployed. I’m afraid this will repeat itself with 5G.
Today, the leaders are China, but also Australia, South Korea and the United States. Even the Middle East is ahead of Europe. Of the 220 million subscribers globally, 80% are Chinese. China has transferred 11% of its subscribers to 5G, North America, 4%. In Europe, it is 1%. The Chinese see it as the cornerstone of long-term industrial competitiveness. They made it an investment area.
Can this delay be made up?
At the current rate, it would take two years for Europe to reach China’s current level. The risk for Europeans is to miss out on new jobs. If our digital infrastructures are not at the same level as those of other countries, we will not be able to create these new companies which will generate the jobs of the future.
Why such slowness?
There are several reasons. First, operators do not benefit from a sufficiently high return on investment. In Europe as in the United States, the spectrum is very expensive. But if the American operators own the frequency bands they buy, in Europe they are only allocated for a limited period. This does not encourage operators to invest in the latest technologies. Second, the authorization processes are very complicated and slow.
Finally, there is the concern of public opinion. We see it on the vaccine [contre le Covid-19], where skepticism is more important than elsewhere. It’s the same for 5G. Yet independent scientific studies have not shown that it has a negative impact on health. Certain European regulations in this area are an obstacle to its deployment.
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