Swedish telecommunications giant Ericsson has announced an expanded funding agreement with the Canadian government, increasing its research and development investment to CAD $634.8 million across its facilities in Ottawa and Montreal.

The investment, which builds upon a CAD $470 million commitment announced last year, will strengthen Canada's position in next-generation communications technologies, including 5G Advanced, 6G, artificial intelligence, Cloud RAN, and quantum computing research.

François-Philippe Champagne, minister of innovation, science and industry, welcomed the partnership, saying: "Our partnership with Ericsson solidifies Canada's position as a leader in next-generation networks. With the increased investment, we'll not only support the 5G networks of today, but also advance the technologies that will shape our future."

The five-year agreement is expected to create almost 200 new high-skilled jobs and provide opportunities for more than 600 co-op positions through university partnerships. Ericsson plans to onboard up to 120 students annually and commit to more than 10 academic collaborations each year.

Börje Ekholm, president and chief executive officer of Ericsson, highlighted Canada's attractive investment environment: "Canada has invested in education for quite some time. You have immigration that's actually happening on a continuous basis. I think that's positive for us because we can build the talent here."

The Ottawa facility, which serves as Ericsson's key North American R&D centre, spans 25,000 square metres, with more than 4,300 square metres dedicated to research laboratories. The Montreal operations house Ericsson's Global AI Accelerator program and quantum hub.

Ottawa mayor Mark Sutcliffe emphasised the significance of the investment: "This commitment reflects Ottawa's strength as a hub for world-class talent and innovation, solidifying our city's role in driving the next wave of technology advancements."

The partnership is expected to bring substantial economic benefits to both the Ottawa and Montreal regions, with government figures suggesting that each new job created in the sector generates 1.3 additional jobs in the broader economy. The next generation of 5G wireless technology is projected to contribute CAD $40 billion annually to Canada's economy within the next four years.

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