Telecom giant Ericsson says Europe’s industry structure is ‘probably unsustainable’

The main enforcement of Swedish telecom company Ericsson connected Monday warned Europe's manufacture operation is apt unsustainable, calling for consolidation crossed the portion to boost competitiveness.

The comments travel soon aft the company, which is 1 of the world's biggest providers of 5G mobile networks, announced it is readying to chopped 8,500 jobs arsenic portion of its cost-cutting measures.

"The large occupation successful Europe is truly that our customers tin simply not spend to physique retired the networks and I deliberation that is going to wounded European competitiveness agelong term," Ericsson CEO Börje Ekholm told CNBC's Karen Tso astatine Mobile World Congress successful Barcelona, Spain.

Asked however the portion tin code this issue, Ekholm replied, "You cognize my presumption connected this, I bash judge Europe needs to consolidate."

Ekholm said successful countries specified arsenic the U.S., China and India, consolidation had meant determination were present conscionable 2 oregon 3 operators nationwide.

In Europe, however, "it is 200 operators, beauteous overmuch 4 positive successful astir each country. It is an manufacture operation that is astir apt unsustainable and that needs to beryllium addressed," Ekholm said.

Ericsson's main enforcement said it was inactive "very, precise early" successful the 5G travel but tipped India to physique 1 of the world's strongest 5G networks successful the adjacent fewer quarters.

Ekholm said that India would besides "probably commencement to thrust innovation connected apical of the web good earlier galore different countries."