The win matters less for its immediate revenue than for what it signals. Japan’s largest mobile operator has committed the processing brain of its radio network to Ericsson’s in-house silicon at precisely the moment the industry is trying to work out how artificial intelligence will reshape mobile traffic. For a company whose core radio business has been shrinking, that is a useful anchor.

What the deal actually covers
RAN Compute is the baseband layer of a mobile network, the computing hardware that sits behind the antennas and handles signal processing, scheduling and the software logic that determines how efficiently spectrum is used. Radios get the attention. Baseband determines what those radios can actually do.

Ericsson says the purpose-built platform uses its latest in-house silicon and is optimised for 4G, 5G and 5G Advanced, as well as for artificial intelligence and machine learning workloads running inside the radio access network. The company describes the result as an AI-native and programmable platform capable of supporting long-term software evolution.

That phrase is doing heavy lifting. It means DOCOMO is buying hardware it expects to keep upgrading through software for years rather than replacing at the next generational step. In an industry where full network swaps are financially painful, longevity is a selling point in its own right.

The numbers behind the pitch
The commercial case rests on two figures. Ericsson claims the platform delivers up to twice the capacity of the previous generation of baseband products while consuming less than half the energy, which it says enables more efficient site operations and lower costs in centralised radio access network deployments where compute units are installed in aggregated fashion.

Both halves of that claim land hard in Japan. The country’s post-Fukushima dependence on imported liquefied natural gas keeps power costs high by international standards, and network energy is one of the few operator expenses that scales directly with traffic growth.

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Organically, meaning before currency effects are applied, the company grew sales by 6% across all its divisions. That is genuinely good performance. But because the Swedish krona became significantly stronger against other currencies, the revenue figure that actually shows up in the books fell by 10%. Reported net sales came in at SEK 49.3 billion, about $5.21 billion, below the $5.48 billion analysts had expected.

The currency drag alone amounted to SEK 7.8 billion. Earnings per share hit $0.0285, missing the consensus estimate of $0.1152 by 75%, though much of that gap is explained by currency revaluations and adjustments to long-term employee stock programmes rather than weak operations.

The underlying business held up well. The adjusted gross margin was 48.1%, showing the company is managing its costs tightly. The overall EBITA margin (a measure of operating profit) reached 11.3%, and the Networks division, which sells mobile infrastructure to carriers, posted a healthy 19% margin on its own. Free cash flow remained solid at SEK 5.9 billion, and the company’s net cash reserves grew to SEK 68.1 billion.

New Tech, Share Buyback Promise Better Days Ahead

CEO Börje Ekholm pointed to strong execution in both the Networks and Enterprise segments. In mid-April, Ericsson launched what it describes as the world’s first fully digital indoor 5G system in Oslo, Norway. The system allows multiple mobile operators to share the same physical infrastructure while keeping their networks separate, a significant development for dense environments like airports, stadiums, and office buildings.

Looking ahead, Ericsson spent SEK 10.9 billion on research and development this quarter, signalling that it is investing heavily in 5G-Advanced and AI-driven energy efficiency technologies. The board approved a SEK 15 billion share buyback, essentially returning cash to shareholders as a sign of confidence in long-term performance.

North American demand has slowed, and geopolitical uncertainty continues to cloud the outlook, but management believes its organic momentum will eventually show through in the reported numbers once currency conditions stabilise.

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“5G continues its strong growth trajectory, reaching three billion connections globally and growing 34% YoY. While still behind 4G, which stands at 8.3 billion connections, 5G adoption is accelerating rapidly. Asia remains the largest market, accounting for 69% of global 5G connections,” Omdia said.

According to the research and advisory group, fixed broadband connections reached 1.6 billion in 2025. FTTx continues to dominate as the leading technology, surpassing 1.169 billion connections and growing 7% annually. The term “FTTx” denotes broadband network architectures that use optical fibre to replace all or part of the traditional copper local loop.

“The global ranking of telecoms operators by connectivity revenues continues to be dominated by operators from the United States and China, which together account for eight out of the top ten positions. The remaining two operators are based in Japan. Global CAPEX totalled USD 303 billion in 2025. Although this represents a 2% year-on-year decline, it marks an improvement from the 3.5% decline recorded in 2024,” the Omdia report said.

Ari Lopes, Omdia Practice Leader for Service Provider Markets, said, “Overall, the 2025 results show that the telecom industry’s core business remains highly relevant, but is facing strong headwinds, including slow growth, while the sector has yet to realise meaningful returns from investments in new technologies.”

In terms of the American and Chinese companies dominating the global ranking of telecoms operators, a 2025 report from Dell’Oro, titled “4Q 2025 Mobile Core Network and Multi-Access Edge Computing Report,” stated that the top four vendors, Huawei, Ericsson, Nokia, and ZTE, posted very strong growth rates in the year, apart from collectively accounting for about the same amount of market share from 2024 onwards.

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With an estimated one-third of the world’s population (about 2.6 billion people) still offline, predominantly in rural and low-income areas, FWA offers a fast, cost-effective way to reach the “last mile.” Unlike plugging a smartphone into a router, FWA uses specialised customer-premises equipment, along with spectrum licenses, to provide stable, high-speed links.

Its portability and lower construction costs make it ideal for areas where laying fibre is prohibitively expensive or slow.

In short, FWA brings fibre-like speeds to underserved areas in weeks or months, rather than years, helping to close the digital divide while opening new business opportunities for investors.

What is fixed wireless access?

Fixed Wireless Access is a broadband service designed for homes and businesses, delivered via a cellular network. As Ericsson explains, “FWA is a wireless connection that provides broadband access to a specific location, such as a home or enterprise premises. It enables high-speed internet via radio signal, without the need for physical cables.”

It typically involves a small antenna (customer premises equipment or CPE) mounted on the outside (or inside) of a building, which communicates with a nearby 4G/5G base station. While FWA can run on existing 4G LTE networks, 5G FWA offers much greater capacity. Because 5G supports much higher speeds and lower latency, it can deliver performance comparable to fibre optics, making it a true alternative even in cities.

FWA differs from personal hotspots or “tethering” in that the receiver is stationary and dedicated, which allows for unlimited data plans and guaranteed performance. In a way, FWA treats each home like a 5G customer, but fixed so that operators can offer symmetrical, high-capacity links similar to wired broadband.

As one telecom strategist put it, fixed wireless has moved from a niche solution to a “primary growth driver” for broadband expansion. The technology works best when homes stay in roughly the same location (no driving off with the router) and ideally have some line of sight to the cell tower. However, new equipment and the use of spectrum are extending the range and overcoming obstacles, widening FWA’s reach.

FWA and the digital divide

Worldwide, connectivity gaps are stark. In high-income countries, roughly 93% of people are online, but in low-income countries, only about 27% have internet access. Rural areas lag even further. Globally, 83% of urban dwellers are online versus only 48% in rural communities. In fact, of the 2.6 billion people still offline in 2024, 1.8 billion live in rural areas. This digital divide is not just statistics; it translates into missed opportunities in education, healthcare, commerce, and more. Providing affordable broadband to underserved populations could be transformative for emerging economies.

In this context, FWA is being embraced as a key bridging technology. Its low infrastructure cost, with no need to dig trenches for cable, can cut deployment expenses by roughly half in hard-to-wire areas.

Deploying FWA involves installing towers and dishes, which is much faster than stringing fibre across mountains or forests. Samsung’s network experts note that FWA “can reach the last mile” and is often “easy and fast to deploy,” making it ideal for unserved markets.

The cost savings also tend to be passed on to customers; for example, rural home internet plans over 4G/5G are often cheaper than legacy DSL or fibre services, aiding adoption in price-sensitive communities.

In remote regions of the United States and elsewhere, towers like this one are being equipped with 5G radios to serve fixed wireless customers. For instance, UScellular, in partnership with Ericsson, launched 5G millimetre-wave FWA service targeting rural and suburban homes.

In April 2022, the company began offering home internet speeds of several hundred Mbps in ten cities. Within months, nearly 180,000 households were able to access the service. Upgrading antenna technology has expanded its FWA coverage area by roughly 40 times, delivering speeds of up to 300 Mbps in areas previously too remote for cable.

Similar efforts are underway at other US carriers; a recent Accenture/ CTIA study finds that 5G FWA could economically serve 8.4 million rural US households, which is nearly half of all rural homes, with high-speed broadband. In the US, billions of dollars in federal subsidies are also being directed toward new FWA-friendly deployments, recognising it as a fast path to connect the hardest-to-reach communities.

Across the globe, governments and telecom companies are promoting FWA as a digital inclusion tool. In Bangladesh, for instance, regulators recently authorised mobile carriers to offer fixed wireless broadband to homes and offices. Under the new 5G guidelines, operators can now use their wireless spectrum to extend coverage into rural villages and urban edge areas where wired infrastructure is sparse.

One local newspaper noted that this move will “extend broadband coverage efficiently, especially in areas with limited wired infrastructure.” In India, Reliance Jio is already deploying FWA on its nationwide 5G network; Jio’s 5G “AirFiber” plans are reaching remote districts and fuelling explosive growth.

A June 2025 report notes that Jio’s FWA subscriber base has ballooned to 6.88 million, slightly surpassing the 6.85 million fixed-wireless users of US-based T-Mobile, making Jio poised to become the world’s largest FWA provider. In many parts of Sub-Saharan Africa, wireless broadband is often the only realistic option. Tarana Wireless, for example, is working with Microsoft’s Airband initiative to deploy “next-generation FWA” in several African countries.

In some regions of Africa, fewer than 30% of people have reliable internet today. Such efforts, using FWA radios capable of handling non-line-of-sight signals and interference, could rapidly improve connectivity for schools, clinics, and homes, even in rugged terrain.

In Latin America and the Caribbean, both governments and multilateral banks recognise significant opportunities. Currently, over 240 million people in Latin America lack internet access, which represents about one-third of the population.

Analysts from Ericsson note that many countries are beginning 5G rollouts with FWA use cases in mind because “FWA is ideal for places that are difficult to access with traditional fixed broadband.”

The Inter-American Development Bank even estimates that closing the region’s digital gap could boost GDP by up to 7.7% and create over 15 million jobs, which is a significant boost to economic growth, gains to which rapidly expanding broadband (whether wired or wireless) would contribute. In practice, some Latin operators have trialled 5G FWA in rural Peru and Brazil, and big carriers like Claro (America Movil) have signalled interest in using 5G home internet to reach unserved areas.

Overall, the message is clear: the areas hardest to wire tend to be exactly where digital connectivity is needed most for development, and FWA offers a practical way to bring broadband to those communities. By delivering multi-hundred-megabit service over the air, FWA can connect remote schools, telemedicine outposts, and low-income neighbourhoods that have fallen off the fibre map. It is already reshaping market dynamics.

For example, in 2023, over 90% of new broadband subscribers at Tier-1 carriers in the US came via FWA rather than fibre or cable. Operators everywhere are taking note. Even smaller regional ISPs and rural cooperatives see fixed wireless as a growth engine, and hardware vendors report that virtually every operator is now planning or deploying FWA networks.

Investment and market trends

FWA is also a bright spot for investors and equipment makers. The global market for fixed wireless broadband is booming. A recent industry forecast values the FWA market at about $36.5 billion in 2024, with projected growth to roughly $127.6 billion by 2032, which reflects a 17% CAGR. This rapid growth is primarily fueled by the need for connectivity in rural and underserved areas. The report notes that “growing demand for broadband in underserved and rural areas is driving market growth.”

Unsurprisingly, most of the early deployments have been in North America, which currently holds the highest share of the FWA market, but Asia-Pacific is expected to grow the fastest, thanks to initiatives in India, China, and Southeast Asia.

Major industry players are positioning themselves accordingly. Traditional telecom giants like Verizon, T-Mobile, AT&T (all in the US) and equipment vendors like Nokia and Ericsson are highlighted as top FWA players.

Indeed, each of the “big three” US wireless carriers has already launched 4G/5G home internet products and is investing in FWA-capable radio sites. On the vendor side, Nokia and Ericsson have boosted their FWA product lines in recent years. Nokia’s 5G AirScale and Lightspan products, and Ericsson’s FWA CPE and small-cell portfolios, are being sold into markets worldwide.

Even traditionally mobile-focused equipment makers are touting FWA. For example, Samsung has made statements about how its 5G radios can be used to cost-effectively extend broadband under US government subsidy programmes.

There is also a surge of private investment and partnerships in this space. United States-based startup Tarana Wireless, which makes so-called “next-generation FWA” gear optimised for NLoS rural use, has attracted over $400 million in R&D and capital to date.

In 2023, Tarana raised an additional $50 million from Digital Alpha, a digital infrastructure investor, to scale its deployments. Digital Alpha’s thesis is centred on funding wireless internet service providers that rely on FWA, recognising that this technology can “fundamentally change network performance and operator economics” for rural ISPs. Tarana’s C1 (Gigabit 1) platform is now used by hundreds of small ISPs in 21 countries, and its success stories have piqued investor interest.

Despite its promise, FWA also faces challenges. Many regions still lack sufficient mid-band 5G frequencies or the regulatory approvals for using them in fixed services. Without mid-band spectrum, operators may rely on crowded sub-6GHz or limited mmWave bands, affecting coverage or penetration.

FWA can claim to offer fibre-like speeds, but real-world throughput may vary based on distance, interference, and whether customers share a cell. Some early fixed wireless plans experienced speed fluctuations or data caps that limited user experience. Emerging “next-gen” FWA systems aim to reduce these issues, but rollout and operator expertise are still catching up with the technology hype.

Finally, bridging the digital divide is not just a technology problem but also involves local education and support. In some regions, even when high-speed internet is available, adoption is low due to affordability, digital literacy, or competing priorities. Effective FWA initiatives often pair network buildout with programmes for subsidised service, community training, or partnerships with schools and clinics.

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The collaboration between the two companies comes as a part of du’s plan to simplify network rollout and efficiently manage the expected growth in data traffic over its 5G network. It is also aligned with the UAE’s long-term sustainability strategy, and Ericsson is also set to demonstrate its reduced power consumption benefits using its ultralight Massive MIMO radios.

Saleem AlBlooshi, chief technology officer, du, told the media, “At du, we seek to build modern networks that bring about positive transformations in sustainability and in enhancing the efficiency of operations, to meet the demands of our customers at present and in the future. Network modernisation meets the long-term strategic goals of reducing the carbon footprint and implementing the best practices in sustainability through deploying modern technological features that meet the highest standards of sustainability in various operational aspects.”

He added: “Our cooperation with Ericsson to deploy 5G MIMO and RAN solutions is a new step in the endless efforts to achieve the ambitions and goals for the future, as well as embodying the aspirations to enhance the sustainability of operational operations. This is achieved by modernizing the infrastructure to ensure the provision of higher capacity for the network and reducing the carbon footprint. We are confident that in cooperating with Ericsson, we will be able to bring about significant qualitative improvements and positive transformations of the network operations, thereby supporting the UAE vision towards a more sustainable future.”

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The plunge in mobile services revenue has mainly to do with the free mobile services and extra mobile data allowances provided at no additional cost by the operators to support their subscribers amid the pandemic.

Earlier this month, it was reported that DTAC is set to deploy its 5G network in the 700MHz spectrum band to expand coverage and capacity nationwide and is partnering with Ericsson to do so.

In this regard, DTAC chief technology officer Prathet Tankuranun told the media, “DTAC sets the priority on bringing high-speed internet service to all of our customers. We never stop and are speeding up the development of our nationwide 4G and 5G networks.

“The latter is being deployed on the low-band 700MHz, which will enhance our network efficiency across Thailand, particularly the high-density downtown areas with high-rise buildings. Our customers can experience better and better services from our restless efforts to roll out networks through utilising Massive MIMO technology to increase the upload and download speed by three times. We connect everyone to every important thing in life.”

Last year, it was reported that Huawei is planning to develop a 5G ecosystem innovation centre at the Digital Economy Promotion Agency’s (DEPA) headquarters in Thailand. Huawei was to invest around ฿475 million for the development of the 5G ecosystem innovation centre in Thailand.

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Haitham Abdulrazzak, chief technology officer at Etisalat told the media, “Etisalat continuously strives for innovative solutions to bring value to our customers. Being recognised as the world’s fastest mobile network operator by Ookla in 2020, 5G will act as an important infrastructure in realising the digital future, boosting investment in the country and driving the knowledge economy.”

He added, “We are rapidly upgrading our network to deliver the quality, capacity, and overall network performance that our enterprise and consumers demand. With a new 5G Radio and 5G Core network, we will further ensure high quality, increased capacity, and greater reliability for our customers.”

Recently, Etisalat Egypt’s chief executive Hazem Metwally announced an E£5 billion worth of investments during 2021 to continue improving its services in the country.

Etisalat reported revenues of around Dh1.07 billion during the third quarter of 2020, which is an 18 percent increase year-on-year. The telco’s subscribers increased to 26.2 million during the period when compared with 26 million users in the previous quarter. According to the company, the number of customers was however less by 300,000 than the 26.5 million subscribers registered in the third quarter of 2019.

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Currently, NTT holds a 66 percent stake in NTT Docomo. It is reported that NTT’s planned move to buy the remaining 34 percent stake in Docomo could become Japan’s biggest ever tender offer. According to industry experts, the move is also likely to yield to government pressure for aggressive price cuts on mobile fees.

NTT is expected to make a offer today and the whole deal is expected to cost around ¥4 trillion.

Jefferies analyst Atul Goyal wrote in a report, “Post-acquisition, Docomo will no longer be answerable to shareholders. If the government instructs it to cut prices, it will oblige. And then it will be just a matter of time that KDDI, SoftBank will follow.”

It is reported that Japan’s top three megabanks namely Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and Mizuho Financial Group will be among the lists of banks that will extend loans to NTT for its potential acquisition of NTT Docomo.

Earlier this month, NTT acknowledged that around ¥18 million has been stolen from bank accounts linked to NTT Docomo’s emoney service.

In June, it was reported that NT will invest ¥64.5 billion in NEC Corp to accelerate its efforts to develop 5G wireless technology in the country. According to the deal, NTT bought a 4.8 percent stake in NEC as its main network equipment supplier hopes to crack the dominance of Huawei Technologies, Ericsson and Nokia in 5G network infrastructure.

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Huawei will invest around ฿475 million for the development of the 5G ecosystem innovation centre in Thailand.

The centre is being developed by Huawei in partnership with the Digital Economy and Society (DES) Ministry and DEPA to accelerate the adoption of 5G across industries.

DES minister Buddhipongse Punnakanta said during the opening ceremony, “Thailand takes a crucial step toward moving into a new socio-economic era. Thailand is among the first countries in ASEAN to be on track to adopt 5G technology, which not only offers innovative services and seamless experiences, but is also reshaping all industries toward digitalisation.

“This is one of the Prime Minister’s and the government’s greatest priorities. This is an important milestone demonstrating the readiness of Thailand to be a digital hub in Asean by utilising 5G technologies to improve economic and social development. The pandemic is a turning point for the digital economy globally and Thailand plays a role in the social and economic development of countries’ recovery,” he added.

The centre will serve as a sandbox for the development of digital innovations for 5G applications which will look to create new business opportunities for SMEs and startups in Thailand, thus establishing the country as a digital hub in the ASEAN region.

According to recent media reports, Nokia became the third 5G equipment developer, along with Sweden’s Ericsson and China’s Huawei, to provide equipment to all three of Thailand’s leading telecoms to develop their 5G infrastructure.

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In a press release, Singtel said that it is also offering an additional 10GB of local data to its users. Singtel also said its 5G network can deliver more than 1Gbps of speed and uses the 3.5GHz frequency of Singtel’s newly expanded spectrum holdings along with its existing 2100MHz spectrum.

To first batch of regions to have Singtel 5G service are Harbourfront, Bugis and Dhoby Ghaut.
Yuen Kuan Moon, chief executive officer at Singtel, consumer Singapore, told the media, “With Covid-19 driving everyone online and dramatically increasing our reliance on digital services to work, learn and play, 5G is set to be a huge enabler in our lives in this new normal.”

A nationwide roll out of its 5G services is expected in the next 5 years.

Earlier this year, Singtel along with a joint venture between StarHub-M1 won a licence to operate 5G networks across Singapore, according to Infocomm Media Development Authority (IMDA). It was reported that the firms will have to provide 5G network for at least half of Singapore by the end of 2022.

This marks Singapore’s first move in 5G network licencing. Previously, Singapore’s telecom authority had received three bids. Singtel and TPG Telecom submitted their respective proposals, while StarHub and M1 joined forces to submit the proposal.

Singtel, which is the country’s largest telecom operator in the country, has decided to use equipment provided by Sweden-based Ericsson.

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