Telefonaktiebolaget LM Ericsson (publ) (ERIC): ANSOFF MATRIX [Dec-2025 Updated]

You're looking past the quarterly noise to see exactly where Telefonaktiebolaget LM Ericsson (publ) is placing its bets for the next decade, and honestly, the Ansoff Matrix lays it out perfectly. We see the immediate grind: pushing for more high-margin 5G Core deals and using that massive $14 billion AT&T contract to try and crack 50% North American RAN share. But the real action is in the next steps, like expanding the Network API ecosystem globally and launching 130 new radios to power 5G Advanced capabilities, all while making calculated leaps into new territory with private 5G networks and serious 6G research. Dive in below to see how these four strategies-from aggressive market share grabs to building out the Vonage-powered Global Communications Platform-map out a clear, if challenging, path forward for Ericsson.

Telefonaktiebolaget LM Ericsson (publ) (ERIC) - Ansoff Matrix: Market Penetration

Market Penetration for Telefonaktiebolaget LM Ericsson (publ) (ERIC) centers on deepening relationships and increasing sales within its existing customer base, primarily Communications Service Providers (CSPs) in established geographic markets. This strategy relies on aggressive execution in key areas to capture greater wallet share and solidify leadership against competitors.

Secure high-margin 5G Core deals, aiming to increase the 140+ commercial contracts.

You're pushing to convert existing relationships into higher-value, recurring revenue streams, especially around the 5G Core. While the target is to move beyond 140+ commercial contracts, recent product launches like the Ericsson On-Demand SaaS platform for 5G core services aim to accelerate this by offering consumption-based billing with no upfront licensing fees, helping CSPs deploy services in minutes. This shift to a software-as-a-service (SaaS) model directly targets higher margin service revenue.

Leverage the $14 billion AT&T contract to push North American RAN market share above 50%.

The five-year strategic agreement with AT&T, valued at approximately USD 14 billion, is a massive anchor for North American penetration. This deal positions Telefonaktiebolaget LM Ericsson (publ) (ERIC) to become the operator's dominant RAN equipment vendor, aiming to carry 70% of its wireless traffic over Open RAN-capable platforms by the end of 2026. This single contract fueled a reported over 50% year-over-year growth in the North American market during Q3 results. The goal is to translate this momentum into a sustained Radio Access Network (RAN) market share exceeding 50% in the region.

Aggressively replace competitors in existing markets, capitalizing on the Q1 2025 RAN share of over 42% outside China.

Telefonaktiebolaget LM Ericsson (publ) (ERIC) is leading the pack when you exclude the Chinese market. Research shows that excluding China, Telefonaktiebolaget LM Ericsson (publ) (ERIC) leads the vendor ranking, followed by Nokia and then Huawei. This leadership is underpinned by the Q1 2025 RAN share figure of over 42% outside China. The strategy is to use superior portfolio performance, especially in Massive MIMO, to displace incumbent vendors in existing operator footprints globally.

Promote energy-efficient Massive MIMO radios to reduce operator operating costs by up to 50%.

Selling efficiency is key to securing deals where Total Cost of Ownership (TCO) is a major factor. Telefonaktiebolaget LM Ericsson (publ) (ERIC) promotes its latest Massive MIMO solutions by highlighting tangible operational savings. For instance, certain radio units can reduce the tower footprint by 50 percent. Furthermore, RAN Compute solutions offer up to 15 to 20 percent lower energy consumption compared to older setups, which helps operators manage the 15% of site opex that RAN typically accounts for.

Drive adoption of 5G Standalone (SA) networks to enable new revenue streams like network slicing.

The market is clearly moving toward Standalone (SA) architecture, which held a dominant market share of more than 58.9% in 2024. Telefonaktiebolaget LM Ericsson (publ) (ERIC) is capitalizing on this by enabling advanced features. The deployment of 5G Standalone is directly linked to monetization opportunities, as evidenced by the 65 commercial network-slicing offerings documented across 33 CSPs in the November 2025 Mobility Report. The focus is on preparing networks for Advanced RAN Slicing and other differentiated connectivity services.

Here's a snapshot of the relevant metrics driving this Market Penetration strategy:

• RAN Share Outside China (Q1 2025): over 42%
• AT&T Open RAN Contract Value: USD 14 billion
• North America RAN YoY Growth (Q3): over 50%
• Massive MIMO Tower Footprint Reduction: 50 percent
• Commercial Network Slicing Offerings (Nov 2025): 65
• CSPs with 5G SA Launched (Nov 2025): >90

The competitive landscape in existing markets is defined by these performance metrics:

You need to ensure the sales teams are armed with the latest TCO models showing how the 15 to 20 percent lower energy consumption from new radios translates into multi-year operational savings for your existing tier-one customers. Finance: draft the updated TCO comparison model for the top five North American accounts by next Wednesday.

Telefonaktiebolaget LM Ericsson (publ) (ERIC) - Ansoff Matrix: Market Development

You're looking at how Telefonaktiebolaget LM Ericsson (publ) is pushing its existing business-network infrastructure and services-into new geographic or customer segments. This Market Development quadrant is about scale and access, not reinventing the core offering.

Consider the Network API reach expansion. The Aduna venture, formally established as a 50:50 joint venture on September 11, 2024, aims to commercialize aggregated network Application Programming Interfaces (APIs) globally. Ericsson holds a 50 percent equity stake in this entity. This move targets new developer ecosystems, building on a market that was estimated at USD 252.10 billion in 2024, with a forecast to reach approximately USD 1741.39 billion by 2034, growing at a CAGR of 21.32% from 2025 to 2034. This is a clear push into new service/value creation markets outside traditional network sales.

Targeting the US public sector is another key development move. The Ericsson Federal Technologies Group (EFTG) was established to drive 5G-driven digital transformation across U.S. federal agencies. This group builds on existing projects, such as providing the foundation for multiple 5G prototype deployments with the Department of Defense (DoD). This is about securing long-term, high-value government contracts in a new customer segment.

For high-growth regions, the focus is on deploying advanced technologies like Fixed Wireless Access (FWA) and 5G SA (Standalone). The June 2025 Ericsson Mobility Report shows that 51 percent of global CSPs offering FWA now include speed-based options, up from 40 percent in June 2024. FWA is projected to account for more than 35 percent of new fixed broadband connections. On 5G subscriptions, the forecast is to top 2.9 billion globally by the end of 2025, representing about one third of all mobile subscriptions. In Q3 2025, the Europe, Middle East and Africa (EMEA) market area grew by 3% year-over-year, with growth specifically driven by Africa. Latin America, however, saw sales decline by 8% in Q3 2025, following a very strong Q3 2024.

To streamline customer focus and efficiency, Telefonaktiebolaget LM Ericsson (publ) executed a structural change effective March 15, 2025. The company consolidated three previous market areas-Europe & Latin America, North America, and the Middle East & Africa-into two new regions: Market Area Americas and Market Area Europe, Middle East, and Africa (EMEA).

This geographical realignment impacts reported sales figures. For instance, in Q3 2025, the Americas region accounted for 35% of Telefonaktiebolaget LM Ericsson (publ)'s net sales, even as its sales declined by 8% year-over-year. This aligns with the stated goal of increasing sales in the Americas, which represented 35% of total sales by Q2 2025, up from 29%.

Here is a snapshot of the regional performance context following the structural changes and market activity through Q3 2025:

The Networks segment, which makes up the bulk of the business, saw organic sales decrease by 5% in Q3 2025, but the adjusted gross margin improved to 50.1%.

Telefonaktiebolaget LM Ericsson (publ) (ERIC) - Ansoff Matrix: Product Development

Telefonaktiebolaget LM Ericsson (publ) (ERIC) is pushing new products across its portfolio, focusing heavily on programmability and intelligence.

The company is on track to offer 130 radio products supporting open and programmable networks during 2025. These new products are significant, as they will make up more than two thirds of the company's deliveries this year.

Investment in the Ericsson Intelligent Automation Platform (EIAP) is substantial, with Telefonaktiebolaget LM Ericsson (publ) (ERIC) pumping EUR 200 million into its Athlone R&D hub over three years. This investment is aimed at advancing open, programmable 5G networks and developing network powered rApps.

The integration of Artificial Intelligence (AI) and Machine Learning (ML) is central to this product development, targeting autonomous network operations and cost reduction. Intelligent RAN Automation specifically uses ML to reduce operational costs, and autonomous operations, powered by agentic AI, aim at reducing costs.

Commercialization of network slicing is showing concrete results as of late 2025. The November 2025 Ericsson Mobility Report documents 65 commercial network-slicing offerings across 33 CSPs. Furthermore, twenty-one of those 65 commercial offerings were launched in 2025 alone.

Acceleration in Open RAN-ready product development includes the rollout of the RAN Connect open fronthaul solutions. Telefonaktiebolaget LM Ericsson (publ) (ERIC) is adding Open Fronthaul (OFH) Category B with Uplink Performance Improvement (ULPI) to its Cloud RAN and selected Massive MIMO radios, starting in 2025.

Here are the details on the new RAN Connect portfolio:

The new radio portfolio also features energy efficiency improvements:

• AIR 3266 reduces energy consumption by up to 30 percent.
• AIR 3285 reduces energy consumption by 30 percent.
• New Antenna Systems reduce radio output power by 29 percent.
• Flagship Antenna 4818 achieves up to 85 percent electrical and beam efficiency.

The overall push for programmable networks is supported by hardware readiness:

• Telefonaktiebolaget LM Ericsson (publ) (ERIC) is on track to offer 130 radio products supporting open and programmable networks during 2025.
• More than one million Ericsson radios in the field are hardware-prepared for the next generation of open fronthaul technology.

The investment in Athlone is tied to the Ericsson Intelligent Automation Platform (EIAP), which is Ericsson's open network management and automation platform for multi-vendor and multi-technology 4G and 5G Radio Access Networks (RAN).

Telefonaktiebolaget LM Ericsson (publ) (ERIC) - Ansoff Matrix: Diversification

You're looking at how Telefonaktiebolaget LM Ericsson (publ) (ERIC) is pushing beyond its core Mobile Networks business, which is projected to account for $\text{65}$% of its $\text{FY2025}$ total revenues of $\text{\$25}$ billion. This diversification is key to capturing new value pools.

Expand the Enterprise segment with private 5G networks for industrial IoT and cloud communications.

The Enterprise segment, which includes Enterprise Wireless Solutions (your private networks) and the Global Communications Platform, is projected to bring in $\text{SEK } 2.6$ billion in $\text{FY2025}$, representing about $\text{10}$% of total revenues. In $\text{Q2 } 2025$, the segment saw adjusted sales drop $\text{6}$% year-over-year, moving from $\text{SEK } 6.5$ billion to $\text{SEK } 5.5$ billion. However, profitability improved; the adjusted EBITA (Earnings Before Interest, Taxes, and Amortization) loss narrowed to $\text{SEK } 0.5$ billion, down from a loss of $\text{SEK } 1.2$ billion in the same period last year, largely due to cost reductions. This unit is focusing on mission critical and enterprise private networks as a priority for stabilizing commercial performance.

Leverage the Vonage acquisition to build the Global Communications Platform for integrated Network APIs.

The acquisition of Vonage, completed for $\text{\$6.2}$ billion, established the Business Area Global Communications Platform (BGCP). The strategic goal is to expose and monetize advanced 5G network capabilities via open APIs to the developer community, which includes Vonage's more than one million registered developers. Analyst expectations pointed to $\text{17}$% growth in the CPaaS (Communications Platform as a Service) business up to 2025, with a Total Addressable Market (TAM) worth $\text{\$69}$ billion by 2025. Telefonaktiebolaget LM Ericsson (publ) (ERIC) conservatively estimates the global API market to be worth $\text{\$8}$ billion by 2030. In $\text{Q2 } 2025$, Vonage's performance contributed to the segment's sales slip, with its adjusted sales falling $\text{9}$%. Still, the platform is showing traction; on November 17, 2025, Telefonaktiebolaget LM Ericsson (publ) (ERIC) launched commercial fraud prevention Network APIs across all major U.S. carriers. Early deployments of this fraud detection show $\text{3-5}$x faster authentication and an $\text{8}$ percentage point conversion improvement versus SMS OTP. Furthermore, on November 20, 2025, Vonage received three Established Leader recognitions from Juniper Research for its Network APIs, Global Mobile Identity, and A2P & Business Messaging offerings. The transaction was expected to contribute $\text{USD } 0.4$ billion in near-term revenue synergies by 2025.

Invest in 6G research, including the Quantum Research Hub in Montreal, for future network standards.

Telefonaktiebolaget LM Ericsson (publ) (ERIC) is actively shaping future standards, with the first commercial 6G services anticipated around 2030. The company is renewing its multi-million investment in its U.K.-based research program for 6G, focusing on areas like cognitive networks and integrated sensing and communication. This aligns with the U.K.'s Digital and Technologies Sector Plan, which allocates $\text{£370}$ million to advanced connectivity technologies. Looking ahead, Telefonaktiebolaget LM Ericsson (publ) (ERIC) forecasts $\text{180}$ million 6G subscriptions by 2031.

Develop Non-Terrestrial Network (NTN) integration with satellites to serve maritime and remote rural sectors.

The push for ubiquitous connectivity involves integrating terrestrial networks with space-based ones. Current mobile networks cover less than $\text{40}$% of Earth's land surface. On March 5, 2025, Telefonaktiebolaget LM Ericsson (publ) (ERIC), Qualcomm, and Thales Alenia Space achieved a significant milestone by successfully completing a 3GPP-based end-to-end New Radio (NR) 5G NTN call using a lab-emulated Low Earth Orbit (LEO) satellite channel. This validates the practical viability of integrating satellite technology within existing terrestrial frameworks for services like voice and real-time video streaming in previously uncovered areas.

Expand ASIC development activities in India, strengthening the semiconductor ecosystem for future products.

To reinforce its technological prowess, Telefonaktiebolaget LM Ericsson (publ) (ERIC) is expanding its R&D team in Bengaluru, India, to focus on Application-Specific Integrated Circuit (ASIC) development. The company expects to initially grow this R&D team by more than $\text{150}$ positions. This effort supports the Ericsson Silicon platform, which uses custom System on a Chip (SoC) solutions for high-performing, energy-efficient products across the Radio System portfolio. Globally, Telefonaktiebolaget LM Ericsson (publ) (ERIC) invests about $\text{USD } 5$ billion annually in R&D.

Here is a quick look at some of the key figures tied to these diversification efforts:

The ASIC expansion in India is part of a global R&D commitment that sees Telefonaktiebolaget LM Ericsson (publ) (ERIC) investing about $\text{USD } 5$ billion annually. Also, the success of the Enterprise segment relies on cost discipline, as seen by the $\text{SEK } 1.2$ billion loss narrowing to $\text{SEK } 0.5$ billion in $\text{Q2 } 2025$.

You should review the $\text{Q3 } 2025$ report, due October 14, 2025, to see if the Enterprise segment stabilization is on track. Finance: draft $\text{13}$-week cash view by Friday.