Ericsson Bets on New Software to Spur 5G Revenue Growth

A logo of Ericsson is seen outside the company's office in Kanata, Ontario, Canada April 17, 2023. REUTERS/Lars Hagberg/File Photo
A logo of Ericsson is seen outside the company's office in Kanata, Ontario, Canada April 17, 2023. REUTERS/Lars Hagberg/File Photo
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Ericsson Bets on New Software to Spur 5G Revenue Growth

A logo of Ericsson is seen outside the company's office in Kanata, Ontario, Canada April 17, 2023. REUTERS/Lars Hagberg/File Photo
A logo of Ericsson is seen outside the company's office in Kanata, Ontario, Canada April 17, 2023. REUTERS/Lars Hagberg/File Photo

Sweden's Ericsson said on Wednesday it has partnered with Deutsche Telekom to offer software tools for developers and business customers that will allow telecom operators to get more revenue.

Known as network application programming interface (API), the software will use the Vonage platform - a company Ericsson bought for $6.2 billion in 2022 - to help developers create new use cases based on a mobile network.

Network APIs can be used by businesses for things such as boosting 5G speed when needed to locate a customer's phone in a store when a transaction is taking place to prevent fraud, Reuters reported.

"We view the API business as a standalone business in itself, so we need to make that profitable by itself and the way the revenue split works is attractive for us and will be attractive for Deutsche Telekom," Ericsson Chief Executive Borje Ekholm said in an interview.

Telecom research firm STL Partners predicts that revenue from mobile network APIs will grow to over $20 billion by 2028.

More than 140 companies are working under an open source project called CAMARA to define, develop and test network APIs.

After investing hundreds of billions of dollars on 5G infrastructure, telecom operators have been trying to get returns from selling faster connections to businesses to automating factories, with varying success.

"They (operators) want to get more revenue, they will be able to sell features, whether it's speed, latency, location authentication, they are going to sell a lot of different things coming out of the network," Ekholm said.

"That gives a new source of revenue they haven't had for a long time."



US Urges Curb of Google’s Search Dominance as AI Looms 

An illuminated Google logo is seen inside an office building in Zurich, Switzerland, December 5, 2018. (Reuters)
An illuminated Google logo is seen inside an office building in Zurich, Switzerland, December 5, 2018. (Reuters)
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US Urges Curb of Google’s Search Dominance as AI Looms 

An illuminated Google logo is seen inside an office building in Zurich, Switzerland, December 5, 2018. (Reuters)
An illuminated Google logo is seen inside an office building in Zurich, Switzerland, December 5, 2018. (Reuters)

US government attorneys urged a federal judge Monday to make Google spin off its Chrome browser, arguing artificial intelligence is poised to ramp up the tech giant's online search dominance.

The Department of Justice (DOJ) made its pitch at a hearing before District Judge Amit Mehta, who is considering "remedies" after making a landmark decision last year that Google maintained an illegal monopoly in online search.

"Nothing less than the future of the internet is at stake here," Assistant Attorney General Gail Slater said prior to the start of the hearing in Washington.

"If Google's conduct is not remedied, it will control much of the internet for the next decade and not just in internet search, but in new technologies like artificial intelligence."

Google is among the tech companies investing heavily to be among the leader in AI, and is weaving the technology into search and other online offerings.

Google countered in the case that the United States has gone way beyond the scope of the suit by recommending a spinoff of its widely used Chrome, and holding open the option to force a sale of its Android mobile operating system.

The legal case focused on Google's agreements with partners such as Apple and Samsung to distribute its search tools, noted Google president of global affairs Kent Walker.

"The DOJ chose to push a radical interventionist agenda that would harm Americans and America's global technology leadership," Walker wrote in a blog post.

"The DOJ's wildly overbroad proposal goes miles beyond the Court's decision."

The DOJ case against Google regarding its dominance in internet search was filed in 2020.

Judge Mehta ruled against Google in August 2024.

- Ad tech under fire -

Google's battle to protect Chrome renewed just days after a different US judge ruled this month that it wielded monopoly power in the online ad technology market, in a legal blow that could rattle the tech giant's revenue engine.

The federal government and more than a dozen US states filed the antitrust suit against Alphabet-owned Google, accusing it of acting illegally to dominate three sectors of digital advertising -- publisher ad servers, advertiser tools, and ad exchanges.

The vast majority of websites use Google ad software products that, combined, leave no way for publishers to escape Google's advertising technology, the plaintiffs alleged.

District Court Judge Leonie Brinkema agreed with most of that reasoning, ruling that Google built an illegal monopoly over ad software and tools used by publishers, but partially dismissed the argument related to tools used by advertisers.

"Google has willfully engaged in a series of anticompetitive acts to acquire and maintain monopoly power in the publisher ad server and ad exchange markets for open-web display advertising," Brinkema said in her ruling.

The judge concluded that Google further entrenched its monopoly power with anticompetitive customer policies and by eliminating desirable product features.

Online advertising is the driving engine of Google's fortune and pays for widely used online services like Maps, Gmail, and search offered free.

Money pouring into Google's coffers also allows the Silicon Valley company to spend billions of dollars on its artificial intelligence efforts.

Combined, the courtroom defeats have the potential to leave Google split up and its influence curbed.

Google said it is appealing both rulings.