Reuters is reporting that Ericsson is on the verge of investing $238.30 million in an assembly line in Brazil dedicated to 5G technology.
Latin America is a competitive market for 5G suppliers, with China recently expressing confidence Huawei would be selected to help build out Brazil’s network, following Huawei’s announced intention of investing $800 million in a new Brazilian factory. Ericsson doesn’t seem to be willing to concede the market, however, if the news is any indication.
“We already export 40% of all equipment assembled in Brazil to Latin American countries, and it will be no different with 5G,” Eduardo Ricotta, president of Ericsson Latam South, told Reuters. “We expect this new assembly line to be operating as of the third-quarter of 2020, but the schedule will also depend on the 5G auction.”
Ricotta pointed out that Ericsson is the only 5G manufacturer to have operating networks on all continents, with all of them being large networks.
According to MarketWatch, the Latin American market is expected to expand at an “overall compound annual growth rate (CAGR) of 121% and will be worth of 6.37 Bn by 2025.”
With so much on the line, it’s little wonder that two of the three major 5G manufacturers are investing so heavily in Brazil. Ericsson’s commitment will likely be a welcome alternative for companies hesitant to partner with Huawei.