Telecom network and software major Ericsson has appointed Borje Ekholm as president and CEO, effective January 16, 2017.

Borje Ekholm, a Sweden-based investor, will replace Hans Vestberg, who stepped down as resident and CEO of Ericsson. The company said Jan Frykhammar will remain interim CEO until January 16, 2017.

Borje Ekholm, born in 1963, has already served on Ericsson’s Board of Directors for the past ten years. The company said that Borje Ekholm has understanding of the challenges and the opportunities Ericsson currently faces.

Borje Ekholm joins Ericsson from his current position as CEO of Patricia Industries, a division within Investor.

Prior to assuming this position in 2015, Borje Ekholm held the position as president and CEO of Investor AB between 2005 and 2015.

Previous positions also include president of Investor Growth Capital Inc., as well as positions with Novare Kapital AB and McKinsey & Co Inc.

Ericsson aims to benefit from Borje Ekholm’s ability to forcefully execute on strategic direction and plans.

“As the networks and applications become even more important in a 5G connected world, our customers, and the industry, look for continuous innovation,” said Borje Ekholm.

Borje Ekholm is a member of the Board of Directors for Ericsson, Alibaba Inc., NASDAQ OMX Group Inc. and Trimble Navigation Ltd. He is also a member of the University Board of KTH Royal Institute of Technology.