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Economic Moat

Telefonaktiebolaget LM Ericsson has no economic moat

Operators can choose competing equipment suppliers, so Ericsson must keep earning contracts through price and performance rather than rely on captive customers. Its established position and patented technology provide strengths, but do not give it exclusive control over the equipment customers need.

Why Telefonaktiebolaget LM Ericsson has no moat

Customers have credible alternatives

Patents do not exclude rivals

Size creates no captive network

The explanation behind each reason