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In 1876, at the age of 30, he started a telegraph repair shop with help from his friend Carl Johan Andersson in central Stockholm and repaired foreign-made telephones.In 1878 Ericsson began making and selling his own telephone equipment. In 1878 he made an agreement to supply telephones and switchboards to Sweden's first telecommunications operating company, Stockholms Allmänna Telefonaktiebolag.Its factory could not keep up with demand; joinery and metal-plating were contracted out.

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The company offers services, software and infrastructure in information and communications technology for telecommunications operators, traditional telecommunications and Internet Protocol (IP) networking equipment, mobile and fixed broadband, operations and business support services, cable television, IPTV, video systems, and an extensive services operation.

Ericsson had no patent or royalty problems because Bell had not patented their inventions in Scandinavia.

His training as an instrument maker was reflected in the standard of finish and the ornate design of Ericsson telephones of this period.

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Also in 1878, local telephone importer Numa Peterson hired Ericsson to adjust some telephones from the Bell Telephone Company.

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