Taking 5G connectivity to the mines

Ericsson (ERIC) and Epiroc (EPOKY) will collaborate to provide mining companies with high-performance wireless connectivity, according to a statement.

According to Ericsson and Epiroc, mining companies are demanding reliable, high-performance wireless connectivity as they digitalize and automate their operations. As a result, Ericsson has seen an opportunity to bring 5G connectivity to the mines. Epiroc is a leading productivity partner in the mining industry.

Ericsson Eyes the Mining Industry for the 5G Market

Going beyond the operator market

For Ericsson, teaming up with Epiroc to bring 5G connectivity to the mines could further widen its opportunities to diversify outside the telecommunications operators market. Nokia (NOK), also keen to diversify outside the operators market, created a special division last year dedicated to selling to nonoperator customers.

Ericsson generated $5.9 billion in revenue in the third quarter, representing an increase of 9.0% YoY (year-over-year). Ericsson’s revenue had been falling in the previous quarters before the company managed to reverse the trend in the third quarter.

Betting on 5G to drive long-term growth

For long-term growth, Ericsson is betting on the adoption of 5G connectivity and diversification outside of its primary operator market. The race for 5G dollars pits Ericsson against Nokia and Samsung (SSNLF), and each has secured some 5G contracts in recent months. Ericsson and Nokia have each won $3.5 billion in 5G-related contracts from T-Mobile (TMUS). On its part, Samsung supplied equipment and technology for Verizon’s (VZ) initial 5G program, which saw the operator launch 5G services in four cities in the United States.

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