Ericsson has announced that it will record a non-cash impairment of SEK 11.4 billion in the second quarter 2024 for intangibles, mainly attributed to the Vonage acquisition. The impairment reflects lower anticipated market growth in some of Vonage’s current portfolio. The sum will be reported as a net income impact after tax in the Enterprise segment.

Niklas Heuveldop, head of the business area Global Communications Platform and CEO of Vonage, said the market environment has deteriorated and the company has decided to refocus its investments in strategically prioritised areas, leading it to reassess certain growth assumptions.

The vendor said its strategy to develop a new source of monetisation for the telecom industry remains. It said Vonage is at the centre of digitising enterprises and society by developing the Global Network Platform for network APIs, which was the strategic impetus for the Vonage acquisition. Ericsson said that twelve partnerships with major service providers have already been declared, including the addition of Singtel and Telstra in Q2.

Heuveldop said the company still sees a positive momentum throughout the industry. Ericsson is making advanced 5G network capabilities available to the global developer sector, he said, to accelerate the innovation of value-added applications for industry and society. This will open up new revenue streams for Ericsson’s operator customers and spur growth in the telecoms industry.

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