5G has arrived. It's a long wait for Ericsson, Nokia.

The award comes after more than two years of stagnant sales, profit warnings, layoffs and executive changes at the two largest Western telecom tool manufacturers. Once carriers around the world have finished deploying all the hardware needed to build today's 4G networks, they have significantly reduced their purchases. Meanwhile, two burgeoning Chinese competitors, Huawei Technologies Co. and ZTE Corp., have offered cheaper products in many fast-growing markets.

Ericsson and Nokia have long awaited the increase in sales of 5G, long awaited, and it is unclear if it will be maintained. Telecommunications equipment manufacturers and mobile operators have not yet finalized the details of how the technology works, and different regions may have different standards. Some executives are skeptical about the real potential of the network.

AT & T Inc. and Verizon Communications Inc. are attempting to introduce 5G in some cities before the end of the year. Last month, T-Mobile US Inc. signed a $ 3.5 billion contract to purchase 5G equipment and services from Ericsson. The Trump administration encourages the 5G race from the sideline. Some officials said the country should deploy 5G on a large scale, ahead of China, to maintain its economic and technological edge.

"5G is becoming a commercial reality," Borje Ekholm, general manager of Ericsson, told reporters on Thursday. The company's shares were trading up nearly 6% early in the afternoon in Europe. "It's not what, if and when, but today."

The 5G should be 100 times faster than today's wireless networks. It promises to be fast enough to enable near instantaneous download of movies and new technologies such as autonomous cars. It can also support more connected devices and enable Internet of Things, which means that everyday items, such as sneakers and heart monitors, are connected to the Internet.

This triggered a sort of arms race between the United States and China for the deployment of technology.

Competition is now playing in sales for companies like Ericsson.

"We see North America advancing very quickly, leading the pack today, followed by Northeast Asia, where we are also seeing a surge in 5G," he said. Thursday Ekholm.

Ericsson said it gained 2.7 billion Swedish crowns ($ 301 million) in the third quarter, compared to a loss of 3.5 billion Swedish crowns in the same quarter of the previous year. Sales rose 9 percent to 53.8 billion kronor, up from 49.4 billion kronor a year earlier.

Strong sales dampened the shock of another surprise: Ericsson said it would likely incur a "material" fine, in addition to possible other sanctions, as part of a lengthy investigation by US investigators.

Ericsson said in 2013 that the Securities and Exchange Commission was investigating the company. In 2016, he said he was cooperating with US authorities in connection with a survey related to the law on corrupt practices abroad, aimed at punishing corruption.

Ericsson said the investigations went back to practices starting in 2007. Mr. Ekholm said that Ericsson had communicated to the authorities the results of an internal investigation, which had revealed breaches of professional ethics and leads from 50 employees. He declined to say which countries were involved and said it was too early to say how the company could solve the problem with the US government.

This persistent investigation and the drought in sales in recent years have put pressure on Ericsson. The company has laid off about 20,000 employees in the last two years due to huge losses.

Since Mr. Ekholm became Managing Director in January 2017, Ericsson has focused on its core business of manufacturing telecommunications equipment. He added that the company is continuing to reduce costs and that it is on track to complete its recovery by 2020.

Write to Stu Woo at [email protected]