to be worth less than radio contracts, but they are a critical source of long-term service revenues. Ericsson and Huawei are the top two vendors of 5G Core services in terms of market share, through Cisco, Nokia, Samsung, and ZTE also compete in the field, Dell'Oro Group. These vendors are racing to establish 5G Core partnerships now, as this serves as the basis for an ongoing relationship with network operators.
This relationship requires R&D investment on the part of the 5G Core vendor, which can help the network operator derive new capabilities from the 5G network over time. In Ericsson's Q2 2020 earnings call, CEO Borje Ekholm , "5G Core has been won in a number of ... customer networks, but [there's] still a lot of customers remaining.
5G Core services will play a crucial role in Ericsson's efforts to boost revenue in Northeast Asia. On a quarter-over-quarter basis, Ericsson's sales from Northeast Asia grew 99%, from SEK 6.5 billion in Q2 2019 to SEK 3.9 billion in Q2 2020. While 5G equipment deployments played a crucial role in driving revenue growth in Northeast Asia, 5G Core services can help sustain the revenues in the long term.
The Softbank contract builds on Ericsson's momentum in Northeast Asia, where it now has 5G Core services partnerships with
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