Private 5G docks in Hamburg – as Deutsche Telekom and Ericsson scratch a seven-year itch

AT&T (T) partnered with Ericsson (ERIC) for 5G expansion, upgrading networks while Ericsson faces hardware delivery challenges. AT&T's Q2 2026 revenue rose 2.3% to $31.6B, EPS up 20.4% to $0.65. Ericsson's Q2 sales fell 6% to $5B, net income down 12%. Hedge funds adjusted stakes in both. AT&T's debt and legacy revenue declines are risks; Ericsson's margins face pressure from component costs.

SoftBank and Ericsson's AI-RAN trial improved spectral efficiency by 25% and user throughput by 50%. Google invested $12.18bn in Marvell Technology for custom AI chips. Comsol plans 5G expansion in South Africa. Telekom Malaysia's Q2 revenue rose 6.8% but net profit fell. Negratín and Telefónica trialed IoT solutions. India may disband the Digital Communications Commission. NTT Data and Palo Alto Networks formed a $1bn cybersecurity alliance.

Ericsson reported Q2 results with adjusted gross margin of 48.4%, up from 48% a year earlier, despite weaker sales. Revenue fell 6% YoY to SEK 52.7 billion, with organic sales down 1% due to lower IPR licensing revenue. Cloud Software and Services grew 5% organically. Management warned Q3 Networks margins may face pressure from higher deployment volumes.

Ericsson was selected by the Queensland Government to supply the first-stage private 5G communications platform for Queensland’s “The Wave” next-generation rail network linking Brisbane and the Sunshine Coast. Ericsson will work with UGL Transport and Frequentis to deliver a 5G-enabled Digital Radio System supporting ETCS Level 2 rollout, with Sector 1 North of the network.

Ericsson was selected under the UK Ministry of Defence RM6393 framework to supply services and components for an £8 billion tactical communications upgrade, supporting Project Morpheus. The framework runs to June 2034 and covers private 5G plus resilient battlefield connectivity. Ericsson will work alongside other approved suppliers; Nokia is not listed.

Ericsson reported Q2 sales of SEK 52.7 billion, down 6% year over year, with adjusted gross margin rising to 48.4% and adjusted EBITA of SEK 6.9 billion (13.1% margin). Net income fell to SEK 4.1 billion and free cash flow before M&A to SEK 0.4 billion. The company cited weaker North America and Europe networks and warned higher component costs from AI. CEO Börje Ekholm will step down end-September; Per Narvinger takes over Oct. 1.