Global telecom equipment manufacturer Ericsson (NASDAQ: ERIC) and the Canadian government announced a five-year research and development partnership valued at more than $350 million. The R&D partnership is intended to put Canada at the forefront of global development in next-generation communications technologies that encompass 5G Advanced, 6G, AI, Cloud RAN, and Core Network technologies.
The investment will be focused on Ericsson’s R&D facilities in Ottawa, Ontario and Montreal, Quebec. It is expected this program will increase skill levels of hundreds of jobs and onboard as many as 300 new intern positions over the five-year timeline. The investment will also support the expansion of research facilities and staff support for quantum computing at Ericsson’s recently established Quantum Research hub in Montreal.
Justin Trudeau, Prime Minister of Canada, remarks, “Today’s announcement is further evidence that Canadian workers have the talent the world needs to develop faster and more secure internet connection and other wireless services. As we continue to support innovation, we are creating good jobs, strengthening the middle class, and ensuring Canada remains a global leader in technology.”
“We are already seeing the benefits of next-generation technologies such as 5G and AI, yet we are still in the early days of their potential to transform our work, leisure, and social lives,” comments Börje Ekholm, Ericsson President and CEO. “Ericsson’s R&D investment partnership with the Canadian government, supported by world-class talent in Ottawa and Montreal, will boost innovation and ultimately help to improve the lives of millions of people. We are determined to lead our industry through continued R&D investment.”
Ericsson Canada has R&D centers and offices in Montreal, Ottawa and Toronto and is among the leading R&D spenders in the country, averaging more than $250 million per year. Already Ericsson’s key North American R&D facility, the Ottawa site occupies nearly 270,000 sq ft with more than 42,000 sq ft solely dedicated to lab operations. The lab space includes the recently established Ericsson Open Lab that is initially focused on Ericsson’s Cloud RAN products.
Ericsson has operated in Canada since the early 1950s. Jeanette Irekvist, newly appointed Ericsson Canada President, says: “Ericsson is proudly commemorating 70 years of innovation and operations in Canada this year. Today, we demonstrate our continued commitment to Canada with this high-tech R&D investment announcement. The benefits of this project will strengthen Canada’s technology expertise that is second-to-none, will bolster Ericsson’s world-class R&D centers, and is a testament to the concentration of talent here in the Ottawa-area and in Montreal.” Ericsson Canada is also a partner in the national ecosystem network aimed at fostering 5G adoption and collaboration in Canada.
By John Celentano, Inside Towers Business Editor
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