Ericsson to Spend $1.06 Billion on New ICT Centres
Ericsson says that it planning to invest approximately SEK 7 billion (US$1.06 billion) in the coming five years to build three global ICT Centers. Two will be located in Sweden, in Stockholm and Linköping, while the third one, in North America, will be located in Canada, in Montreal, Quebec.
The three ICT Centers combined will be up to 120,000 square meters, approximately the size of 14 football fields.
The centers will be located close to Ericsson's main R&D hubs and will be the new platform for more than 24,000 Ericsson R&D engineers around the world. Ericsson's customers will also be able to connect remotely for interoperability testing, trials.
Hans Vestberg, President and CEO, Ericsson, says: "Great ideas come from collaboration, and at these centers we will push the boundaries of possibility on next generation technology and services. Flexibility enabled by new ways of working will realize innovation faster to the market and to our customers."
The two ICT Centers in Sweden will begin initial operations from end of 2013 and from end of 2014 respectively and the North American ICT Center from early 2015.
The new hardware design building in Stockholm, Sweden, will provide similar benefits as the global ICT Centers in use of equipment and energy savings. It will enable R&D hardware design activities in Stockholm to consolidate into one modern creative environment.
Ericsson has its biggest R&D hub located in Sweden with more than 9,000 employees. Other bigger R&D sites are in China, US, Canada and Hungary. In 2012, Ericsson's R&D expenditures were SEK 32.8 billion, reflecting around 14 percent of sales.
Correction: An earlier version of this story mistated the US Dollar amount due to conversion error.