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Industry News / Subsystems and Systems

Ericsson's Acquisition Of Telcordia Will Improve Focus On Network Performance And Managed Services

June 21, 2011
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Ericsson, the world's largest manufacturer of mobile network infrastructure, announced the completion of a deal to acquire Telcordia Technologies Inc. This major acquisition, said to be valued at $1.2 B, highlights Ericsson's increasing focus on the demands network evolution, and the software and services needed for that evolution to be successful.

According to Mobile Networks Research Director Philip Solis of ABI Research, “The networks have to evolve across the board to better optimize the delivery of video, and this acquisition will allow Ericsson to focus on the many network changes required to support video as well as a growing amount of other data usage.”

Jim Eller, Principal Analyst, Wireless Infrastructure, adds: “This acquisition will also support Ericsson’s expansion into wireline – not for wireline’s sake, but primarily as the wireline portion of mobile wireless networks. Potentially, this will allow Ericsson to expand on its managed services potential. The company is shifting its revenue structure towards managed services as mobile network equipment continues to become commoditized and pricing pressure from Chinese vendors increases.”

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