Telecom equipment-maker Ericsson’s Networks division will cut down purchasing costs by 50 per cent over the next five years to keep up with competition from Chinese vendors like Huawei.

Telecom equipment-maker Ericsson’s Networks division will cut down purchasing costs by 50 per cent over the next five years to keep up with competition from Chinese vendors like Huawei. The Networks division makes up about two-thirds of Ericsson’s sales.

For Ericsson, bringing costs down will mean using fewer clientspecific products and more standard components. It will also require that each component offers more functions, and that the company reduces the number of platforms and continues its transition from hardware to software.