SwedenLivingWorld world_2_fill WorldBusiness BusinessSports sports-soccer SportsEntertainmentEntertain

Ericsson makes a comeback after the failed Vonage acquisition

Telecom giant Ericsson is making a comeback to rev up the failed acquisition of Vonage. New owners in the form of several world-leading telecom operators are being invited to a jointly owned company. It will absolutely contribute, says Vonage CEO Niklas Heuveldop.

» Updated: 05 October 2024, 09:09

» Published: 12 September 2024

Ericsson makes a comeback after the failed Vonage acquisition
Photo: Mikaela Landeström/TT

Ericsson is teaming up with several telecom giants, customers of Ericsson, to form a joint company to develop so-called APIs, according to a press release. API is a type of programming interface that is intended to make it easier for users to develop applications, something Ericsson and the telecom operators hope will generate additional revenue.

APIs have existed as a technology for a long time, but the application developers have not understood mobile networks, according to Niklas Heuveldop. This is now supposed to change with a common standard, is the idea.

Ericsson will own 50 percent of the new company, while the telecom operators will jointly own the rest. Among the telecom giants participating in the new company are AT&T, Bharti Airtel, Deutsche Telekom, Orange, Telefonica, T-Mobile, Verizon, and Vodafone.

A milestone, Niklas Heuveldop calls it.

But Ericsson has something to prove.

Last year, Ericsson acquired the cloud service company Vonage, which develops APIs and is partly the basis for today's deal – an acquisition that so far has proven to be a failure. Of the purchase price of 63 billion kronor in 2022, 43 billion have been written off since Ericsson realized that Vonage's value did not live up to expectations.

But Vonage will not directly become part of the new jointly owned company.

It's not the heart of the new company, but an important customer, says Niklas Heuveldop.

And is hopefully going to get Vonage going, which is still struggling with poor or no profitability.

It will absolutely contribute, says Heuveldop.

When will the jointly owned new company become profitable?

Maybe in 3-4 years, hopefully sooner.

Tags
TTT
By TTThis article has been altered and translated by Sweden Herald

More news

He became "PG" to the entire Swedish people
3 MIN READ

He became "PG" to the entire Swedish people

PG Gyllenhammar has died: "meant a lot"
1 MIN READ

PG Gyllenhammar has died: "meant a lot"

No Nvidia boost on Wall Street
1 MIN READ

No Nvidia boost on Wall Street

Temu's owner shows its hand
1 MIN READ

Temu's owner shows its hand

Nvidia rises in pre-trading on Wall Street
1 MIN READ

Nvidia rises in pre-trading on Wall Street

Northvolt Applies for Reconstruction
1 MIN READ

Northvolt Applies for Reconstruction

Northvolt: Negotiations are still ongoing
3 MIN READ

Northvolt: Negotiations are still ongoing

Higher Compensation for Job Interviews in Another Location
1 MIN READ

Higher Compensation for Job Interviews in Another Location

Vehicle Giant Warns of Challenges in 2025
1 MIN READ

Vehicle Giant Warns of Challenges in 2025

Unchanged interest rate in Turkey
1 MIN READ

Unchanged interest rate in Turkey

Trump anxiety in the EU over US tariffs
3 MIN READ

Trump anxiety in the EU over US tariffs

Weak demand for scrapping premium
1 MIN READ

Weak demand for scrapping premium

E-fuel company takes in half a billion
1 MIN READ

E-fuel company takes in half a billion

New Report Boost for AI Giant Nvidia's Share
2 MIN READ

New Report Boost for AI Giant Nvidia's Share

Stockholm Stock Exchange Turned Upwards
1 MIN READ

Stockholm Stock Exchange Turned Upwards

Bitcoin closer to the dream limit
1 MIN READ

Bitcoin closer to the dream limit

Higher fee to stop burning of plastic
2 MIN READ

Higher fee to stop burning of plastic

USA wants to force Google to sell Chrome
2 MIN READ

USA wants to force Google to sell Chrome

New method reveals pension fraud
3 MIN READ

New method reveals pension fraud

Most Minus Signs on Asian Stock Exchanges
1 MIN READ

Most Minus Signs on Asian Stock Exchanges