Light Reading
Ericsson CEO talks M&A and announces SAP partnership, O2 core deal, LTE broadcast solution at Mobile World Congress briefing

What's Ericsson's Next M&A Move?

Ray Le Maistre
2/25/2013
50%
50%

BARCELONA – Mobile World Congress 2013 – Ericsson AB CEO Hans Vestberg kicked off his company's annual Barcelona bash early Monday morning with partnership, customer and product announcements and then fended off questions about M&A activities. Presenting to analysts and the media at the company's "village" in the MWC showgrounds on the western outskirts of Barcelona, Vestberg announced:

  • A new 4G/LTE broadcast video solution set to be used by Verizon Wireless and Australia's incumbent operator Telstra Corp. Ltd. that incorporates technology based on three standards: HEVC (High Efficiency Video Coding), a video compression standard that promises reduced bandwidth requirements for video delivery compared with MPEG-4 AVC; MPEG DASH (Dynamic Adaptive Streaming over HTTP), for the adaptive delivery of video to end user devices; and eMBMS (Evolved Multimedia Broadcast Multicast Service), a 3GPP standard that enables broadcast services over wireless spectrum, so reducing the strain on radio access channels and backhaul connections. For more details, see this news release.
  • Telstra is also expanding its LTE network and trying out LTE-Advanced capabilities with Ericsson.
  • A deal to be the exclusive provider of evolved packet core (EPC) technology for Telefónica UK Ltd. (O2 UK), as well as supplying 50 percent of the operator's radio access network (RAN) upgrade for 4G/LTE. For the packet core, Ericsson is supplying EPC capabilities on its SSR Smart Services Router (developed on the acquired Redback IP routing platform) plus SGSN (serving GPRS support node)/Mobility Management Entity (MME) capabilities on its Blade System. Vestberg noted that Ericsson now has 89 contracts for the SSR router. For more on the O2 UK deal, see this press release.
  • A partnership with SAP AG to develop a suite of cloud-based enterprise M2M applications, which can then be sold by operators to their corporate customers. The duo are packaging Ericsson's Device Connection and Service Enablement platforms with SAP enterprise IT applications based on the company's HANA platform. For more details, see this press release.
  • A demonstration of Web Real-Time Communication (WebRTC) applications in collaboration with AT&T Inc. and Mozilla, which has made such an impact here at MWC2013 with its Firefox OS for smartphones.
The CEO also talked about various portfolio and technology developments introduced and announced during the past year, including the increasing focus on OSS/BSS (following the acquisitions of Telcordia and ConceptWave), greater market traction with the Smart Services Router, video-related activities (underpinned by the technology brought on board with the acquisition of Tandberg TV) and its Service Provider SDN initiative. (See Ericsson Gets Trendy for MWC.) With so much recent activity based around technologies on which Ericsson has spent billions of dollars in acquiring, does this mean Vestberg is looking to make further major acquisitions to keep the innovation ball rolling at the company? Or is the M&A streak now over? In answer to Light Reading's question, Vestberg rightly pointed out that there is much innovation and R&D focus on the company's core mobile infrastructure competencies and not just around acquired attributes. But he also noted that Ericsson's M&A strategy is to "fill gaps" with purchases. "I'd rather put $1 billion into R&D or services development, but if an acquisition can speed up time to market we will look at M&A," he noted. With so many gaps filled, an obvious focus for Ericsson's next deal would be around SDN/virtualization technologies that could hasten the vendor's developments in the emerging key area of network functions virtualization (NFV), where it is has products in the pipeline but also where it is trailing the likes of NEC Corp. (See V Is for Virtualization.) — Ray Le Maistre, International Managing Editor, Light Reading

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
The Eye of the Network
50%
50%
The Eye of the Network,
User Rank: Light Beer
2/26/2013 | 5:23:52 AM
re: What's Ericsson's Next M&A Move?
Infinera?..

When/what/where was the last major DWDM deal announcement signed by E///?..

Unless E/// has the same plans for its OTN technologies that it did with its FTTx ones..
Flash Poll
LRTV Huawei Video Resource Center
Sales Director of INIT on Plug & Play Switch Devices

9|19|14   |   3:21   |   (0) comments


INIT Italy uses both the Huawei S5700 and S7700 series switches for the campus LAN environment. Sales Director Andrea Curti says their company chose these Huawei devices over others because of their performance, flexible scalability and plug-and-play features.
LRTV Huawei Video Resource Center
Saudi Arabia Upgrades Vocational Training System

9|19|14   |   3:31   |   (0) comments


The Technical and Vocational Training Corporation (TVTC) has 100,000 students, 150 government-owned institutions and oversees 1000 private institutes. The CIO of TVTC explains that Huawei devices have allowed them to manage multiple datacenters using just one software program, scientifically tracking the progress of students and teachers, saving them millions.
LRTV Huawei Video Resource Center
Huawei's Media Solutions Are Here to Stay

9|19|14   |   4:35   |   (0) comments


The current media revolution requires rapid upgrades in technology. New formats (HD, 3D, 4K etc.) and the subsequent explosion of file sizes demand sophisticated network and storage architecture. Social media and the multiple distribution channels require a robust asset management system. Gartner analyst Venecia Liu speaks about the current technological trends in ...
LRTV Huawei Video Resource Center
Microgenesis on Huawei's Switches

9|19|14   |   3:57   |   (0) comments


Microgenesis is a solutions and system integrator company in the Philippines whose areas of expertise include data centers, networking and security products. In this video, Executive Director Jeffrey Choa talks to us about his customers needs and they benefit from using Huawei switches.
LRTV Huawei Video Resource Center
Network Solutions Help the Philippines Jump Ahead

9|17|14   |   2:59   |   (0) comments


In the past, the Philippines has under-invested in technology. Now, the CEO of Softshell talks about how Huawei products help the Philippines jump ahead as the economy improves.
LRTV Huawei Video Resource Center
VCS Observation for Safer Cities in the Netherlands

9|17|14   |   5:20   |   (0) comments


Holland's VCS Observation has been operating for 22 years. Its main goal is to get cities safer. CEO Wim van Deijzen tells us some of the challenges his company faces and how Huawei is helping to overcome these challenges.
LRTV Huawei Video Resource Center
A Conversation With Serbia's Ministry of Interior

9|17|14   |   4:38   |   (0) comments


At HCC 2014, the Assistant Minister of the Ministry of Interior of the Republic of Serbia talks to us about his projects and corporation with Huawei. Solutions like Safe City and E-Government and services like cloud computing are just some of the areas his department is interested in.
LRTV Huawei Video Resource Center
IHS Analyst Discusses eLTE at CCW 2014

9|10|14   |   7:09   |   (0) comments


Thomas Lynch, associate director of critical communications at IHS Technology, talks about broadband in critical communications.
LRTV Huawei Video Resource Center
TCAA on Huawei eLTE: A Broadband Solution for Mission-Critical Communications

9|10|14   |   2:29   |   (0) comments


At CCW2014 in Singapore, the TCCA's Phil Kidner talks about the importance of broadband data for critical communications.
LRTV Custom TV
Spotlight on Cisco: SDN for Optical Networks

9|8|14   |   9:27   |   (0) comments


Cisco's Greg Nehib talks OpenFlow and more on the 'Software-Defined Networking for Optical Networks' panel at the Big Telecom Event in June 2014.
LRTV Custom TV
Cisco's Evolved Programmable Network (EPN)

9|8|14   |   4:05   |   (0) comments


A look at the various demos Cisco showed at Light Reading's Big Telecom Event highlighting Cisco's EPN innovation and how SDN and NFV technologies are enabling a variety of new services.
LRTV Huawei Video Resource Center
The Future of Ultra-Broadband, With Kevin Kelly (UBBF2014)

9|5|14   |   1:13   |   (1) comment


If you think the technological changes we've seen up to now are astounding, just wait until you see what the future has in store. Discuss upcoming breakthroughs with Kevin Kelly, Founding Executive Editor of Wired Magazine, at the Huawei Ultra-Broadband Forum on September 24.
Upcoming Live Events
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
A survey conducted by Vasona Networks suggests that 72% of mobile users expect good performance all the time, and they'll blame the network operator when it's not up to par.
Today's Cartoon
Vacation Special Caption Competition Click Here
Latest Comment
Hot Topics
Photos: Qualcomm Takes Over San Francisco
Sarah Reedy, Senior Editor, 9/19/2014
NFV & The Data Center: Top 10 Takeaways
Sarah Reedy, Senior Editor, 9/18/2014
New NFV Forum Focused on Interoperability
Carol Wilson, Editor-at-large, 9/16/2014
Pics: LR's Women in Telecom Breakfast
Sarah Reedy, Senior Editor, 9/16/2014
EMC Mulls Merger With HP or Dell – Reports
Mitch Wagner, West Coast Bureau Chief, Light Reading, 9/22/2014
Like Us on Facebook
Twitter Feed