[1] This concluded tumultuous and unhappy venture between the two electronic giants[2] The major offices were located in Lund, Kumla, Raleigh, North Carolina and Lynchburg, Virginia.

[3] Mobile telephony, at this time, constituted 14% of the billing in the business unit for radio communications at Ericsson.

[9] Mobile telephony was now regarded a core product,[3] and on March 1 Johan Siberg assumed the role of CEO, simultaneously changing its name to Ericsson Mobile Communications AB (ECS) and creating a wholly owned subsidiary with its main office in Sweden.

In 1998 the Bluetooth Special Interest Group was created in cooperation with Intel, IBM, Nokia and Toshiba, and in 2000 a corporate spin-off named Ericsson Technology Licensing was created to host the technology, and the first actual product, a Bluetooth headset, reached the market.

[10] Growth and volumes in ECS increased rapidly and during the early years all focus was on quickly ramping up production, which was met with success.

[11][12][13] According to a study in 2000, Ericsson was the third largest mobile phone vendor with an 11% market share, trailing Nokia and Motorola.

The company also produced a Handheld PC named Ericsson MC218, an OEM-product based on Psion Series 5mx.

[15] At this time various experimental projects involving handheld PCs was running: in the annual report of 1999 is a picture of a handheld PC named HS210 cordless display phone which would use Bluetooth to connect to a small base station in a household,[16][17] and another experimental product was the DelphiPad which was developed in cooperation with the Centre for Wireless Communications in Singapore, a tablet computer with touch-sensitive screen, Netscape Navigator as web browser and Linux as its operating system.

Immediately after the turn of the century 2000–2001 the European telecom crisis occurred, and hit Ericsson Mobile Communications especially hard.