Sweden-based Ericsson has said that it is going to close all its operations in the coming months. Earlier, in April this year had put its operation on hold for an unfixed period in Russia. The development was first reported by the Russian Daily newspaper Kommersant.
Nokia And Dell Announces Closure of Operations Too
Along similar lines, Finland-based Nokia also announced the closing of its operations. A Nokia spokesperson said on Monday that, by the end of 2022, most of its employees would end their association with the company. The spokesperson added that the company would continue its legal presence until the completion of legal discourse.
“By the end of the year, the vast majority of our employees in Russia will have moved on from Nokia, and we have vacated all of our offices,” a Nokia spokesperson said on Monday.
Earlier, on Saturday Dell Technologies also said that the company has stopped all its operations in Russia. The Texas-based American company closed all its offices in mid-August this year.
What Is Behind Companies Shutting Down Their Offices?
The shutting down of operations of various western companies in Russia is being viewed in the context of the Russian attack on Ukraine. Russian forces attacked Ukraine on February 24. The two nations continue to engage in war as the war enters its seventh month.
As per reports Nokia has said that the company is only focused on maintenance of infrastructure and contractual obligations as it exits the country. Ericsson which has around 2000 employees in the country had said that it would support its employees financially.
According to reports Ericsson is planning to move a few of its support staff to establish a new firm in the country. The official confirmation on the development is updated.
New Dominant Players
According to news reports post the departure of Sony and Nokia, the country’s mobile operators namely MTS and Tele2 would have to rely on Chinese firms Huawei and ZTE. The two have not commented officially on the development.
Zhongxing Telecommunication Equipment (ZTE) deals with wireless technologies while Huawei is the top network equipment supplier for Russia, and was instrumental in helping MTS deploy 5G services.
Reportedly, MTS(Mobile TeleServices) dominates the media and digital services in Russia having around 80 million subscribers. MTS also has a presence in Europe and Asia. Tele2 which is originally a Sweden-based company is involved in providing wireless services. Tele2 currently provides services to more than 44.6 million subscribers Russian subscribers.