Ericsson taps internal networks chief Per Narvinger as next CEO
Per Narvinger has been appointed as the new President and CEO of Ericsson, replacing Börje Ekholm, who is stepping down after almost nine years in the role. Narvinger, who has been with Ericsson since 1997, previously headed Business Area Networks and Business Area Cloud Software and Services, and will assume his new position on October 1st. This leadership change comes as Ericsson emphasizes its role in providing advanced connectivity solutions crucial for AI applications in the streaming industry.
Key Takeaways
- Per Narvinger, currently head of Business Area Networks, assumes the CEO role on October 1st.
- Börje Ekholm will act as an executive advisor to the new CEO until June 15, 2027.
- Narvinger has chaired dual critical divisions: Networks (since 2025) and Cloud Software (since 2022).
- Leadership transition coincides with Ericsson's pivot toward providing infrastructure for the 'physical AI era.'
Why It Matters
This internal appointment signals strategic continuity as the vendor landscape shifts from 5G buildouts to AI-driven network optimization. Narvinger’s background in Cloud Software and Networks positions him to lead Ericsson’s transition from a hardware-centric vendor to a software-led provider of intelligent connectivity, which is essential for low-latency streaming and high-bandwidth video processing. The move comes as telecom equipment makers face a 'flattish' radio access network (RAN) market, forcing a focus on higher-margin enterprise and mission-critical services. Watch for whether Narvinger maintains Ekholm's aggressive cost-optimization targets while scaling R&D for AI-native 6G and autonomous networking platforms.
Additional Context
The leadership change follows a period of financial and operational repositioning for Ericsson. Per RCR Wireless in April 2026, the company saw organic sales rise 6% year-on-year in Q1 2026, though a significant currency impact led to an 10% decline in reported revenue to SEK 49.33 billion. Despite these currency headwinds, the Networks segment maintained a robust adjusted gross margin of 50.4%, underscoring the resilience of the division Narvinger currently leads as operators prioritize modernizing infrastructure for AI-heavy workloads. Technologically, Ericsson is doubling down on software-driven performance to offset stagnant hardware demand. Per Mobile Europe in June 2026, the company recently launched 'AI in RAN,' a software subscription suite that reportedly improves downlink throughput by up to 20% and spectral efficiency by 10%. This allows service providers to optimize existing 5G investments for agentic AI and immersive video experiences without immediate hardware replacements, a key pillar of the 'AI-native' strategy Narvinger is expected to accelerate. According to the Ericsson Mobility Report from June 2026, global 5G subscriptions have surpassed 3 billion, yet the industry faces a 'traffic inversion' where uplink demand is growing faster than downlink due to generative AI and user-generated video. Narvinger’s experience in both cloud and network segments is critical as Ericsson models suggest AI-driven traffic could cause uplink demands to spike threefold by 2031. His tenure will likely be defined by how effectively Ericsson monetizes this shift through differentiated connectivity and network slicing.
Read full article at advanced-television.com