Light Reading

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        ADD A COMMENT
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
From The Founder
Last week I dropped in on "Hotlanta," Georgia to moderate Light Reading's inaugural DroneComm conference – a unique colloquium investigating the potential for drone communications to disrupt the world's telecom ecosystem. As you will see, it was a day of exploration and epiphany...
LRTV Documentaries
Verizon's Emmons: SDN Key to Cost-Effective Scaling

5|22|15   |   03:53   |   (0) comments


For Verizon and other network operators to ramp up available bandwidth cost effectively, they need to move to SDN and agree on how to do that.
LRTV Documentaries
Lack of Universal SDN a Challenge

5|21|15   |   04:51   |   (3) comments


Heavy Reading Analyst Sterling Perrin talks about how uncertainty about SDN standards and approaches may be slowing deployment.
LRTV Custom TV
Steve Vogelsang Interview: Carrier SDN

5|20|15   |   05:02   |   (0) comments


Sterling Perrin speaks to Steve Vogelsang, Alcatel-Lucent CTO for IP Routing & Transport business, about the new Carrier SDN-enabling Network Services Platform and the operator challenges it solves.
LRTV Custom TV
Carrier SDN: On-Demand Networks for an On-Demand World

5|20|15   |   20:52   |   (0) comments


Steve Vogelsang, Alcatel-Lucent CTO for IP Routing & Transport business, talks about requirements and benefits of Carrier SDN during the keynote address at the Light Reading Carrier SDN event May 2015.
LRTV Documentaries
The Security Challenge of SDN

5|19|15   |   02:52   |   (0) comments


CenturyLink VP James Feger discusses concerns that virtualization could create new vulnerabilities unless network operators build in safeguards.
LRTV Custom TV
NFV Elasticity – Highly Available VNF Scale-Out Architectures for the Mobile Edge

5|18|15   |   5:50   |   (0) comments


Peter Marek and Paul Stevens from Advantech Networks and Communications Group talk about their NFV Elasticity initiative and the company's latest platforms for deploying virtual network functions at the edge of the network. Packetarium XL and the new Versatile Server Module: 'designed to reach parts of the network that other servers cannot reach.'
LRTV Huawei Video Resource Center
Bay Area Spark Meetup 2015

5|14|15   |   3:54   |   (0) comments


Developed in 2009, Apache Spark is a powerful open source processing engine built around speed, ease of use and sophisticated analytics. This spring, Huawei hosted a meetup for Spark developers and data scientists in Santa Clara, California. Light Reading spoke with organizers and attendees about Huawei's code contributions and long-term commitment to Spark.
LRTV Custom TV
The Transport SDN Buzz

5|12|15   |   06:01   |   (1) comment


Sterling Perrin, senior analyst at Heavy Reading, speaks with Peter Ashwood-Smith of Huawei and Guru Parulkar of ON.Lab about the evolution of transport SDN and the integration of technologies.
LRTV Custom TV
Next-Generation CCAP: Cisco cBR-8 Evolved CCAP

5|5|15   |   04:49   |   (0) comments


John Chapman, Cisco's CTO of Cable Access Business Unit and Cisco Fellow, explained the innovation design of Cisco's cBR-8, the industry's first Evolved CCAP, including DOCSIS 3.1 design from ground-up, distributed CCAP with Remote PHY and path to virtualization. Cisco's cBR-8 Evolved CCAP is the platform that will last through the transitions.
LRTV Custom TV
Meeting the Demands of Bandwidth & Service Group Growth

5|1|15   |   5:35   |   (0) comments


Jorge Salinger, Comcast's Vice President of Access Architecture, explains how DOCSIS 3.1 and multi-service CCAP can meet the demands of the bandwidth and service group growth.
LRTV Custom TV
DOCSIS 3.1: Transforming Cable From Hardware-Defined Network to Software-Defined Network

4|29|15   |   03:48   |   (0) comments


John Chapman, Cisco's CTO of Cable Access Business Unit and Cisco Fellow, explains how DOCSIS 3.1 can transform cable HFC network to a more agile software-defined network.
LRTV Huawei Video Resource Center
Predicting Traffic Patterns for Quality Mobile Broadband

4|29|15   |   6:45   |   (0) comments


Accessing information ubiquitously creates complexity and creates heavy traffic onto the network, especially at large-scale events like sporting events or festivals. In this video, Huawei's Mohammad Hussain speaks to experts about how to predict traffic and improve user experience during periods of heavy traffic.
Upcoming Live Events
June 8, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 10, 2015, Chicago, IL
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 6, 2015, The Westin Peachtree Plaza, Atlanta, GA
October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
All Upcoming Live Events
Infographics
Network functions virtualization (NFV) is not the easiest of topics to take on board, so here's a Light Reading infographic, developed following conversations with the folks at HP, that helps make sense of where NFV is taking the industry.
Hot Topics
Verizon Saves 60% Swapping Copper for Fiber
Sarah Thomas, Editorial Operations Director, 5/19/2015
Choosing a Technology Supplier? Consider Changing Your Selection Criteria
Steve Saunders, CEO and founder, Light Reading, 5/18/2015
Chattanooga Charts Killer Gigabit Apps
Mari Silbey, Senior Editor, Cable/Video, 5/20/2015
10 Alternate Uses for Tablets
Eryn Leavens, Copy Desk Editor, 5/22/2015
Smarter 'Dumb' TVs Will Drive OTT Adoption
Mari Silbey, Senior Editor, Cable/Video, 5/18/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
With 200 customers in 60 countries, Stockholm-based Net Insight has carved out a solid leadership position in one of the hottest vertical markets going in comms right now: helping service providers and broadcasters deliver video and other multimedia traffic over IP networks. How has Net Insight managed to achieve this success in the face of immense competition from the industry giants?
My ongoing interview tour of the leading minds of the telecom industry recently took me to Richardson, Texas, where I met with Rod Naphan, CTO and SVP, Solutions, ...
I recently popped down to Texas to chat with CEO Eric L. Pratt about his company, Taqua.
Cats with Phones