In 1953 it became a licensee for Ericsson, manufacturing and selling their phones in the local market and then a subsidiary upon its privatization in 1994.

With the collapse of Yugoslavia and the independence of Croatia, the state began looking to privatize the corporation in the year 1992.

By 1994, Ericsson emerged as the highest bidder and purchased a 49 percent share of the corporation —estimated at $40 million,[2] and integrating operations to a significant extent by 1995.

[citation needed] Ericsson sales for 2007 totalled 1.78 billion US$, having risen year-on-year for many years.

Steadily rising costs of sales have eroded profit, with net income being just under 200 million US$ for 2007.