Editing Ericsson (section)

===Emergence of the Internet (1995–2003)===
In the 1990s, during the emergence of the Internet, Ericsson was regarded as slow to realize its potential and falling behind in the area of IP technology.<ref>{{cite web|title=The Internet and the New World|url=http://www.ericssonhistory.com/changing-the-world/Big-bang/The-internet-and-the-new-world-/|website=History of Ericsson|date=18 September 2019|access-date=7 July 2014|archive-date=24 March 2016|archive-url=https://web.archive.org/web/20160324062923/http://ericssonhistory.com/changing-the-world/big-bang/the-internet-and-the-new-world-/|url-status=live}}</ref> But the company had established an Internet project in 1995 called Infocom Systems to exploit opportunities leading from fixed-line telecom and IT. CEO Lars Ramqvist wrote in the 1996 annual report that in all three of its business areas – Mobile Telephones and Terminals, Mobile Systems, and Infocom Systems – "we will expand our operations as they relate to customer service and Internet Protocol (IP) access (Internet and intranet access)".<ref name="ericsson.com">{{cite web|title=Annual Report 1996|website=Ericsson|url=https://www.ericsson.com/assets/local/investors/documents/financial-reports-and-filings/annual-reports/annualreport1996_en.pdf|access-date=27 October 2017|archive-date=27 October 2017|archive-url=https://web.archive.org/web/20171027181812/https://www.ericsson.com/assets/local/investors/documents/financial-reports-and-filings/annual-reports/annualreport1996_en.pdf|url-status=live}}</ref>

[[File:Ericsson mobil.jpg|thumb|left|200px|An [[Ericsson GH337]] (1995) and [[Ericsson T28]] (1999) mobile phones]]
The growth of [[GSM]], which became a ''de facto'' world standard, combined with Ericsson's other mobile standards, such as [[D-AMPS]] and [[Personal Digital Cellular|PDC]], meant that by the start of 1997, Ericsson had an estimated 40% share of the world's mobile market, with around 54 million subscribers. There were also around 188&nbsp;million [[AXE telephone exchange|AXE]] lines in place or on order in 117 countries.<ref name="ericsson.com" /> Telecom and chip companies worked in the 1990s to provide Internet access over mobile telephones. Early versions such as [[Wireless Application Protocol]] (WAP) used packet data over the existing GSM network, in a form known as [[GPRS]] (General Packet Radio Service), but these services, known as 2.5G, were fairly rudimentary and did not achieve much mass-market success.{{citation needed|date=January 2016}}

The [[International Telecommunication Union]] (ITU) had prepared the specifications for a [[3G]] mobile service that included several technologies. Ericsson pushed hard for the [[WCDMA]] (wideband [[Code division multiple access|CDMA]]) form based on the GSM standard and began testing it in 1996. Japanese operator [[NTT Docomo]] signed deals to partner with Ericsson and [[Nokia]], who came together in 1997 to support WCDMA over rival standards. DoCoMo was the first operator with a live 3G network, using its own version of WCDMA called [[FOMA]]. Ericsson was a significant developer of the WCDMA version of GSM, while US-based chip developer [[Qualcomm]] promoted the alternative system [[CDMA2000]], building on the popularity of CDMA in the US market. This resulted in a patent infringement lawsuit that was resolved in March 1999<ref>{{cite web|title=Ericsson/Qualcomm bitter feud ends|date=29 March 1999|first=Nancy|last=Gohring|url=http://connectedplanetonline.com/mag/telecom_ericssonqualcomm_bitter_feud/|website=Connected Planet|archive-url=https://web.archive.org/web/20140109040128/http://connectedplanetonline.com/mag/telecom_ericssonqualcomm_bitter_feud|archive-date=9 January 2014}}</ref> when the two companies agreed to pay each other royalties for the use of their respective technologies and Ericsson purchased Qualcomm's wireless infrastructure business and some R&D resources.<ref name=":0">{{cite news|title=Short Take: Qualcomm, Ericsson finalize CDMA agreement |url=http://news.cnet.com/Short-Take-Qualcomm,-Ericsson-finalize-CDMA-agreement/2110-1033_3-226260.html |archive-url=https://wayback.archive-it.org/all/20171018160816/https://www.cnet.com/news/ |url-status=dead |archive-date=2017-10-18 |work=[[CNET]] }}</ref>

Ericsson issued a profit warning in March 2001. Over the coming year, sales to operators halved.<ref>{{cite web|title=Crisis|url=http://www.ericssonhistory.com/changing-the-world/Big-bang/Crisis/|website=History of Ericsson|date=18 September 2019|access-date=7 July 2014|archive-date=21 May 2016|archive-url=https://web.archive.org/web/20160521155014/http://www.ericssonhistory.com/changing-the-world/Big-bang/Crisis/|url-status=live}}</ref> Mobile telephones became a burden; the company's telephones unit made a loss of SEK 24 billion in 2000. A fire in a Philips chip factory in New Mexico in March 2000 caused severe disruption to Ericsson's phone production,<ref>{{cite web|title=The Fire That Changed an Industry: A Case Study on Thriving in a Networked World|date=1 October 2008|first=Amit S.|last=Mukherjee|url=http://www.ftpress.com/articles/article.aspx?p=1244469|website=FT Press|access-date=7 July 2014|archive-date=5 June 2016|archive-url=https://web.archive.org/web/20160605010725/http://www.ftpress.com/articles/article.aspx?p=1244469|url-status=dead}}</ref> dealing a ''coup de grâce'' to Ericsson's mobile phone hopes. Mobile phones would be spun off into a joint venture with Sony, [[Sony Ericsson Mobile Communications]], in October 2001.<ref>{{cite web |url=http://news.cision.com/ericsson/r/sony-ericsson-mobile-communications-established-today,c48602 |title=Sony Ericsson Mobile Communications established today – Ericsson |website=News.cision.com |date=2001-10-01 |access-date=2016-11-11 |archive-date=25 December 2016 |archive-url=https://web.archive.org/web/20161225181856/http://news.cision.com/ericsson/r/sony-ericsson-mobile-communications-established-today,c48602 |url-status=live }}</ref>
Ericsson launched several rounds of restructuring, refinancing and job-cutting; during 2001, staff numbers fell from 107,000 to 85,000.<ref>{{cite web |author1=Svenolof Karlsson |author2=Anders Lugn |url=http://www.ericssonhistory.com/changing-the-world/Big-bang/The-first-cutbacks/ |title=The first cutbacks |date=18 August 2016 |publisher=Ericsson History |access-date=2016-11-11 |archive-date=12 November 2016 |archive-url=https://web.archive.org/web/20161112020031/http://www.ericssonhistory.com/changing-the-world/Big-bang/The-first-cutbacks/ |url-status=live }}</ref> A further 20,000 went the next year,<ref>{{cite web |author1=Svenolof Karlsson |author2=Anders Lugn |url=http://www.ericssonhistory.com/changing-the-world/Big-bang/Second-round-of-cuts-/ |title=Second round of cuts |date=18 August 2016 |publisher=Ericsson History |access-date=2016-11-11 |archive-date=12 November 2016 |archive-url=https://web.archive.org/web/20161112022013/http://www.ericssonhistory.com/changing-the-world/Big-bang/Second-round-of-cuts-/ |url-status=live }}</ref> and 11,000 more in 2003.<ref>{{cite web |author1=Svenolof Karlsson |author2=Anders Lugn |url=http://www.ericssonhistory.com/changing-the-world/Big-bang/A-new-chairman-of-the-board/ |title=A new chairman of the board |date=18 August 2016 |publisher=Ericsson History |access-date=2016-11-11 |archive-date=12 November 2016 |archive-url=https://web.archive.org/web/20161112015508/http://www.ericssonhistory.com/changing-the-world/Big-bang/A-new-chairman-of-the-board/ |url-status=live }}</ref> A new rights issue raised SEK 30&nbsp;billion to keep the company afloat. The company had survived as mobile Internet started growing. With record profits, it was in better shape than many of its competitors.<ref>{{cite web |author1=Svenolof Karlsson |author2=Anders Lugn |url=http://www.ericssonhistory.com/changing-the-world/Everyone-on-board/Record-profits/ |title=Record profits |date=18 August 2016 |publisher=Ericsson History |access-date=2016-11-11 |archive-date=25 March 2016 |archive-url=https://web.archive.org/web/20160325050535/http://ericssonhistory.com/changing-the-world/everyone-on-board/record-profits/ |url-status=live }}</ref>