Over the past century, Ericsson consistently pushed the boundaries of telecommunications, defining how the world connects and setting a new standard for innovation. From producing some of the world’s first telephones, to early mobile phones, to developing a programming language used by some of the biggest names in the digital world, we are proud to be not only producing excellent products and solving problems for our customers, but taking a leading role in shaping the future of communication.
Innovation is in our DNA. We built the first Global System for Mobile (GSM) communication in the early 1990s, conducted the first 3G call with our partners at Vodafone in the UK, and launched the first live 4G/LTE network in our hometown of Stockholm.
And we measure our achievements not just by our accomplishments but by how effectively we empower our customers. For instance, Ericsson's role in accelerating 5G brought it to a 70% adoption rate—two years faster than 4G. This exponential adoption has helped bring new capabilities to customers and accelerated digital transformation across industries, while also meeting growing connectivity demands in an increasingly connected world.
Our innovative spirit doesn’t just manifest itself in products you can touch and feel, but in how we lead the development of global standards that move the mobile industry forward. Ericsson’s contribution to the cellular standards for every generation of cellular technology shows how we lead through collaboration, helping drive a cycle of innovation that pushes mobile internet forward at an exponential pace compared to other technologies.
The importance of standardization
That standardization process is at the heart of our industry and what makes research and development in telecommunications different. We don’t measure leadership by who sells the most phones, or the most laptops. Instead, companies all contribute, and at the end of the day we have a global, industry-wide standard that works all over the world.
Operating in accordance with these standards is what helps Ericsson – and our competitors – maximize compatibility, interoperability, safety, repeatability, and quality. But because there’s one standard and not differing, proprietary standards specific to each company, fair and reasonable licensing (often known as FRAND) is critical for getting fairly rewarded for the massive and successful R&D investments companies like Ericsson make.
Ericsson has long been a leader in the standardization process, playing an outside role in contributing to the standards that have shaped every generation, or “G”, from the days of text-only messaging to apps, to streaming video and beyond.
Starting with 3G, each generation of cellular standards has been developed in 3GPP, a global standards body. Ericsson has been a trusted partner and recognized leader within 3GPP and other major standardization organizations – for example, we are also the largest contributor to the Open RAN standards.
While hundreds of organizations participate in 3GPP, only 10 companies have accounted for over 70% of the technical inputs shaping the cellular standards between 2001 and 2020. At Ericsson we are proud to be one of these major contributors.
In fact, since 3GPP was founded in 1999 Ericsson has made more than 90,000 contributions to develop 2G, 3G, 4G, and 5G – thousands more than any other company.
Leadership in 5G and Beyond
Today, Ericsson's leadership continues with the current generation of 5G technology. Through innovations in network architecture, security, and pioneering features like network slicing and edge computing, Ericsson remains at the industry’s cutting edge.
Our position is built upon a strong foundation of intellectual property. We hold the leading patent portfolio in the industry, with more than 60,000 granted patents worldwide. Recent evaluations of 5G patent declarations, applying essentiality filters, have placed Ericsson at the top, with 17.6-20.1% essential patents, far outpacing competitors. No other company had more than 12%.
And as international standards bodies work to develop the next generation of cellular in 6G, Ericsson is once again taking a lead role, laying out the company’s vision for 6G as early as 2019. Ericsson’s early 6G research has inspired critical technologies like neuromorphic computing.
Mobile connectivity enables transformative technology
Of course, the proof of Ericsson’s technology leadership isn’t just in the standardization process or number of patents filed. Ericsson's differentiation lies in our proactive approach to technology and inventive solutions. As an example, our early use of ASICs in 5G radios makes them smaller, more energy-efficient, and easier to install—minimizing tower rental fees and energy costs.
We are the only company that has successfully managed all four mobile generation shifts in the United States. And we take immense pride in being trusted to carry 60% of U.S. mobile traffic, especially in densely populated urban areas where demand peaks. The opening of our Texas 5G smart factory marks a significant step in bolstering U.S. supply chain resiliency by producing 5G radios domestically for the first time since 2G—showcasing the reshoring of advanced electronics manufacturing.
The mobile networks we have helped develop and deploy are enabling breakthrough, industry-transforming technologies. 5G networks, especially as standalone adoption fulfills the generation’s true promise, are driving adoption of AI, bringing the Internet of Things to new heights, and enabling cloud computing.
As we look to 6G and the future, mobile networks will be the lynchpin of a cyber-physical world where physical things, people and activities are all connected through a digital domain of intelligence and data.
R&D investment is the foundation, and fuels the innovation cycle
All the technology we offer is the result of substantial investments in research and development made over many years. We invest around $5 billion in R&D each year, around $40 billion in the last decade alone. In fact, nearly 20% of our sales every year are put back into research and development (R&D) to ensure we offer the most competitive solutions, and to keep the cycle of innovation moving.
That cycle is at the center of everything in the cellular world. It’s why mobile wireless technology has advanced at such a breakneck pace and it’s why standardization and reasonable licensing fees are so critical. Because companies like ours support that R&D investment through licensing, if reasonable royalties aren’t paid, the cycle stops turning.
We’re proud of our history of leading through collaboration. It may not be as easy to recognize as who sells the most handsets, video game consoles, or smart watches. But whenever someone takes a video call from a loved one while traveling, whenever an automated guided vehicle (AGV) in a smart factory leaves its dock, whenever a first responder in the field reports in over a cellular push-to-talk (PTT) device, there is Ericsson research, Ericsson ingenuity, and Ericsson leadership making it happen.