Leaves Oller & Company Telegraph Factory. On April 1, Lars Magnus Ericsson, together with Carl Johan Andersson, opens a telegraph repair workshop in Drottninggatan 15. Stockholm, with a total staff of 3. Alexander Graham Bell patents his new invention, the telephone, in the US. The workshop moves to Lastmakargatan.

Bell telephones on sale in Sweden.

Lars Magnus Ericsson sells improved version of Bell telephone and is able to sell 22 pairs during the year. Marries Hilda Simonsson. He introduced the telephones with signal trumpet at the price of 55 kronor per pair.

Trade union movement begins. Total staff 10, including owners. 74 telephones sold. Fire telegraph manufacture started.

Bell Telephone Co. operating switchboard and subscriber network in Stockholm. LM Ericsson moves to Biblioteksgatan, and sells the first switchboard. Ivar Kreuger was born.

First major contracts (Oslo, St. Petersburg and Gävle) for LM Ericsson. Televerket opens own telephone network in Stockholm.

LM Ericsson has now a total staff of 50 and the working week is 65 hours.

HT Cedergren founds Stockholm's Allmanna Telefonaktiebolag, SAT. Cedergren and Ericsson jointly patent the automatic exchange First SAT order for LM Ericsson.

LM Ericsson moves to Thulegatan 5.

First handset produced.

Stockholm now the world leader in telephone density. At the beginning of the year SAT had 3,164 and the Bell company 1,655 subscribers.

SAT exchange at Malmskillnadsgatan opened, the largest in the world.

The Swedish parliament approves Televerket's proposal for the first nationwide network: Rikstelefon. Ericsson patents carbon granule microphone. Max Sieverts "Trad och Kabelfabrik" established. SAT purchases the share majority of Stockholm Bell Co.

The 20,000 telephone left Ericsson's factory. The Ericsson Health Insurance and Funeral Expenses Fund was formed. Ericsson donated 1,000 kronor to the fund. Telegrafverket opened a trunk service between Stockholm and Gothenburg and invited the public to apply for telephone service. Competition between Telegrafverket and SAT became keener.

Number of employees 153.