Ericsson has begun implementing a new strategy to revive Vonage, the U.S. software company it acquired for US$6.2 billion in 2022—its largest acquisition ever. The move follows years of disappointing performance, with Vonage recording a cumulative operating loss of US$450 million between 2022 and 2025 and prompting Ericsson to write down its value by more than US$4 billion. Outgoing CEO Börje Ekholm acknowledged the business has not delivered as expected and said a turnaround plan is underway, with incoming CEO Per Narvinger expected to lead the next phase.
At the heart of the strategy is network APIs, which allow developers to access telecom network capabilities and build new digital services. Ericsson originally expected Vonage to help operators generate new revenue from advanced 5G services through these APIs. While progress has been made with initiatives such as Aduna, a platform that connects telecom operators and application developers, commercial adoption has been slower than anticipated. So far, most API use cases have focused on fraud prevention and SIM verification rather than the premium 5G services Ericsson had hoped would drive significant growth.
Ericsson is now shifting its focus from consumer use cases to enterprise applications, targeting businesses that need reliable, high-quality connectivity for specific services. Instead of selling faster internet speeds, the company aims to offer solutions that guarantee network performance for business applications such as ride-hailing, logistics, and media uploads. Ericsson believes that broader enterprise adoption of network APIs could eventually create new revenue opportunities for telecom operators, strengthen demand for advanced 5G networks, and help restore confidence in its Vonage investment.
Source : www.lightreading.com
