In preparation for a flat RAN market over the next three years, Ericsson revealed that it aims to cut costs by SEK9 billion ($880 million) by the end of 2023. While anticipating the market for RAN to be flat overall, the Swedish vendor did forecast an annual growth of 11% over the next three years for 5G RAN.
Seventy percent of the SEK9 billion will come from the cost of goods sold, while the other 30% will come from other areas of the business, Ericsson shared at its Capital Markets Day 2022 event.
According to the company, the flat market can be blamed on a “technology shift to 5G from earlier generation,” a shift, the company continued, that is still in its nascent days.