Ericsson lets go of field services subsidiary

Ericsson has announced that it is divesting its Local Services subsidiary, which provides field service operations and maintenance of fixed and mobile networks in Sweden.

Transtema Group will acquire all of the Local Services assets, continuing the operation with its existing 700 employees.

Speaking of the move, Ericsson’s Per Narvinger, said: “Ericsson Local Services delivers very good support to our customers, and we believe Transtema has an excellent opportunity to continue to develop its operations while also executing our existing customer commitments. Together we will ensure a quick and smooth transition and a good relationship.”

Magnus Johansson, CEO Transtema Group, said: “We intend to operate Local Service as a separate legal entity within Transtema Group. It will become the backbone of our field service operations business.

“Our goal is to continue to grow the service business for telecom networks. This is in line with our ambition to develop our operations in Sweden and internationally. We look forward to welcoming on-board all employees as soon as the deal is closed.”

According to Ericsson, the divestment is in line with its business strategy, whereby it will no longer sell new standalone field services products.