The current head of the core networks business, Per Narvinger, will officially assume the CEO role in October.

LM Ericsson Telephone has announced that its Chief Executive Officer, Börje Ekholm, who has led the company for over nine years, has decided to step down. The company has appointed its senior executive, Per Narvinger, to succeed him.

The Swedish telecommunications equipment manufacturer stated on Tuesday that Narvinger, the current head of the Core Networks business, will formally take over as the company's top leader on October 1st.

Narvinger joined LM Ericsson Telephone in 1997 and has held several senior executive roles, including responsibility for the company's operations in the Nordic and Central Europe regions, as well as its cloud software and services business. He took over leadership of the Networks business unit at the beginning of last year.

Jan Carlson, Chairman of LM Ericsson Telephone, stated, "He has deep roots in the communications industry, possesses solid technical expertise and extensive commercial operational experience, and has delivered outstanding performance in several key management positions."

This leadership transition comes as LM Ericsson Telephone faces multiple operational challenges. Influenced by macroeconomic and geopolitical uncertainties, the outlook for operator capital expenditure is unclear, and demand for network equipment this year is expected to stagnate. Simultaneously, the surge in the artificial intelligence industry is driving up prices for components like semiconductors, leading to continuously rising production costs for companies.

LM Ericsson Telephone is betting that as the artificial intelligence industry expands and commercialization accelerates, major network operators will increase investments in infrastructure upgrades to handle the massive surge in data traffic.

During Ekholm's tenure, LM Ericsson Telephone also targeted opportunities from rising global defense spending, strengthening its portfolio in defense and mission-critical products. It focused on developing products like communication systems and 5G-based drone detection sensor systems to expand its business in the defense sector.

Per Narvinger said, "The industry is currently at a critical inflection point. The industrialization of artificial intelligence will create massive demand for advanced communication connectivity solutions, and this is precisely LM Ericsson Telephone's area of strength."

LM Ericsson Telephone disclosed that Börje Ekholm will officially step down on September 30th. Following that, he will serve as an executive advisor to the new CEO until June 15th of next year.