First AXE cut over in Mexico. Ericsson Information Systems (EIS) is set up. Ericsson buys Facit. On September 1, the first NMT system is inaugurated in Saudi Arabia. On October 1, the Nordic NMT system is inaugurated. SRA takes responsibility for all mobile systems, becomes ERA. Kumla factory makes first NMT mobile stations.

Judge Green rules to break up AT & T in the US. 44 countries have chosen AXE. Over 2.3 million lines installed; 4.1 million lines on order. Lose in Norway to ITT. CMS 8800 mobile system introduced to the US market. Ericsson prominent in operators bids for first 30 US cellular markets. In Europe, CEPT sets up Standardization Groupe Special Mobile (GSM) for digital second-generation mobile system. First fully digital AXE exchange opened in Tampere, Finland.

MD 110 PBX is introduced. First US mobile system contract received in Buffalo. January 1, Ericsson is reorganized into Business Areas. New Ericsson logotype is being introduced and trade mark from LM Ericsson to Ericsson is being changed. Ericsson Mobile Telephone laboratory opens in Lund.

Divestiture of AT & T in the US. Richardson, Dallas, facility established to adapt AXE for the US. Buffalo cellular system cut over. BT requests tenders for UK second fixed network switching system supply.

January 1, Ericsson infrastructure in Vodafone's cellular network is cut over in the UK. AXE becomes second system of choice (System Y) in the UK. Ericsson Inc becomes a wholly owned US subsidiary. Dutch PTT choose AXE.

First Ericsson implementation of Intelligent Network. ITT leaves telecoms market and sells its interests to Alcatel. AXE receives Phase A approval in the US. Share of world market for mobile cellular systems reaches 40 percent.

First US orders and cutovers for AXE. China signs its largest telecoms contract to date for AXE. 200,000 lines of AXE installed in China. Technical cooperation agreement with Texas Instruments. GSM MoU commits Europe to GSM. MET is formed in partnership with Matra in France. Mobile Telephones becomes separate business unit within Ericsson Radio Systems. First Ericsson handheld mobile telephone produced for NMT 900.

EIS discontinued and the Data systems and Office Equipment divisions is sold to Nokia. Ericsson has 30 percent of US cellular systems market. First GSM system order from Vodafone, UK. Ericsson invited by NTT to contribute to the design of a Japanese digital mobile system, PDC. 37,000 mobile phones produced at Kumla, Sweden.

Joint venture with General Electric in the US to handle mobile telephones worldwide (Ericsson-GE Mobile Communications). Production is set up in Lynchburg and R&D at Research Triangle Park, US. First DECT 900 cordless telephone is introduced. Corporate values defined: professionalism, respect and perseverance. Deregulation of telecoms operating monopolies gains momentum.

Bjorn Svedberg becomes Chairman of the Board and Lars Ramqvist is named President and CEO. GSM system order from Mannesmann, Germany. World's largest personal paging system, delivered by Ericsson, is cut into service in Taiwan with 650,000 subscribers.