Light Reading
What do Heavy Reading's industry analysts make of Ericsson's planned purchase of Telcordia?

Ericsson + Telcordia: What the Analysts Say

Ray Le Maistre
6/20/2011
50%
50%

With the dust settled on the news that Ericsson AB (Nasdaq: ERIC) intends to buy Telcordia Technologies Inc. for US$1.15 billion cash, what do Heavy Reading 's analysts make of the move? (See Ericsson to Buy Telcordia and Why Ericsson Wants Telcordia .)

Ari Banerjee, Senior Analyst, Heavy Reading
"Telcordia is being bought for roughly 1.5 times its revenue, so not a huge premium. The move gives Ericsson a better stronghold in the U.S. and Latin American markets. ... I want to see how successful Telcordia's assets are in Europe.

"Ericsson will now compete head-on with Amdocs and Oracle on the software side. Ericsson's OSS stack wasn't that impressive, but this makes them a formidable player in OSS and BSS as well as equipment. If Telcordia's assets can be integrated properly, then Ericsson can leapfrog other equipments vendors on the basis of their entire portfolio strength.

"The challenge will be in rationalizing a lot of duplicate assets and dealing with Telcordia's legacy solutions."

Caroline Chappell, Analyst At Large, Heavy Reading
"The multi-domain OSS is the bit that Ericsson didn't have -- its OSS was for Ericsson equipment only, so it needed a multi-vendor OSS capability both for customers wanting to manage heterogeneous networks and for its own internal purposes as a managed network services provider. This is the bright spot of the Telcordia portfolio -- the Granite inventory and Service Director service provisioning/assurance tool. Telcordia had already gone a long way toward closing the loop on provisioning and assurance, which is needed in a SON [self-organizing network]. Notably, Nokia Siemens Networks is working on the same capability.

"It will be interesting to see what Ericsson does with the BSS side of Telcordia, as it has significant duplication here, especially around charging. Telcordia's are the longer established products and Ericsson is behind rivals such as Alcatel-Lucent and Nokia Siemens on the next-generation IN [intelligent networking] side.

"Also, Ericsson had to give up its own SIP application server development, which it was working on jointly with Sun, as Oracle [which acquired Sun] wouldn't continue with it. But Ericsson already has a platform consolidation problem in the SDP [service delivery platform] area, even before the acquisition of yet another with Telcordia."

Berge Ayvazian, Senior Consultant, Heavy Reading
"The Telcordia acquisition will help Ericsson expand its fast-growing managed network services business and enter new segments, such as number portability."

Jim Hodges, Senior Analyst, Heavy Reading
"I see the skill set of the [Telcordia] employees and entrenched customer base as providing Ericsson an opportunity to expand its managed and professional services business in North America."

— Ray Le Maistre, International Managing Editor, Light Reading

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
roamer.sun
50%
50%
roamer.sun,
User Rank: Light Beer
12/5/2012 | 5:01:08 PM
re: Ericsson + Telcordia: What the Analysts Say


It is no doubt that E will consolidate Telcordia asset well, so soon they will prove how this buy significantly strengthen Ericsson OSS/BSS capability..

Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Huawei Video Resource Center
Dr. Dong Sun Talks About Carriers' Digital Transformation & Huawei’s Telco OS

1|29|15   |   6:28   |   (0) comments


Dr. Dong Sun, Chief Architect of Digital Transformation Solutions at Huawei, discusses how telecom operators can become digital ecosystem enablers and deliver optimal user experiences that are in real-time, on-demand, all-online, DIY and social (ROADS).
LRTV Huawei Video Resource Center
Huawei's Chief Network Architect Talks about Network Experience & Operators’ Strategies

1|29|15   |   3:39   |   (0) comments


In the digital age, network experience has become the primary productivity especially for telecom operators. In this video, Wenshuan Dang, Huawei’s Chief Network Architect, discusses how carriers can tackle the challenge of infrastructure complexity in order to enhance business agility and improve user experience.
LRTV Documentaries
The Rise of Virtual CPE

1|27|15   |   01:38   |   (4) comments


As NFV strategies evolve from tests and trials to production telco networks, expect to hear a lot about virtual CPE (customer premises equipment) rollouts during 2015.
LRTV Documentaries
Optical Is Hot in 2015

1|23|15   |   01:56   |   (2) comments


Optical comms technology underpins the whole communications sector and there are some really hot trends set for 2015.
LRTV Custom TV
Policy Control in the Fast Lane

1|22|15   |   2:57   |   (0) comments


What's making policy control strategic in 2015 and beyond? Amdocs talks with Heavy Reading's Graham Finnie about the key factors driving change in the data services landscape. Find out what his policy management research reveals about the road ahead for policy control – and sign up for
LRTV Documentaries
Highlights From the 2020 Vision Executive Summit

1|21|15   |   4:33   |   (2) comments


In December 2014, Light Reading brought together telecom executives in Reykjavik, Iceland to discuss their vision for high-capacity networks through the end of the decade. The intimate, interactive meeting was set against the backdrop of Iceland's spectacular natural beauty. As one of the event's founding sponsors, Cisco's Doug Webster shared his company's ...
LRTV Huawei Video Resource Center
Huawei Pay-TV Partner Harmonic, Helping Carriers Accelerate 4K Video Deployment with Huawei

1|20|15   |   5:42   |   (1) comment


At IBC, Peter Alexander, Senior Vice President & CMO at Harmonic, speaks about the growing interest in pay-TV service and its branching into multiple devices.
LRTV Huawei Video Resource Center
Sony Marketing Director Olivier Bovis Discusses the Outlook for 4K and Cooperation With Huawei at IBC 2014

1|20|15   |   6:50   |   (0) comments


At IBC, Olivier Bovis, Marketing Director of Sony, speaks about the coming of the 4K era.
LRTV Huawei Video Resource Center
Huawei Pay-TV Partner Envivio, Helping Carriers Accelerate 4K Video Deployment

1|20|15   |   2:57   |   (0) comments


At IBC, Olivier Bovis, Marketing Director of Sony, speaks about the coming of the 4K era.
LRTV Huawei Video Resource Center
Pay-TV's Networked Future

1|20|15   |   6:29   |   (0) comments


At IBC, Jeff Heynen, Principal Analyst at Infonetics, speaks about the future of the pay-TV industry and its transition.
LRTV Huawei Video Resource Center
Jeff Heynen: Distributed Access Will Help MSOs Compete in the Future

1|20|15   |   2:26   |   (0) comments


At IBC, Jeff Heynen, Principal Analyst at Infonetics, speaks about moving to distributed access and the future trend of cable business.
LRTV Interviews
Cisco Talks Transformation

1|20|15   |   13:02   |   (0) comments


In December 2014, Steve Saunders sat down with Cisco VP of Products & Solutions Marketing Doug Webster at Light Reading's 2020 Vision executive summit in Reykjavik, Iceland. They spoke about Cisco's approach to network virtualization as well as how service providers can begin to monetize high-capacity networks through the end of the decade.
Upcoming Live Events
February 5, 2015, Washington, DC
February 19, 2015, The Fairmont San Jose, San Jose, CA
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
September 9-10, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
November 11-12, 2015, The Westin Peachtree Plaza, Atlanta, GA
December 1, 2015, The Westin Times Square, New York City
December 2-3, 2015, The Westin Times Square, New York City
Infographics
Hot Topics
Google Continues Gigabit Expansion
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 1/27/2015
Cablevision's New WiFi Try – Freewheeling Enough?
Mari Silbey, Independent Technology Editor, 1/26/2015
Overture Builds on NFV Foundation
Mitch Wagner, West Coast Bureau Chief, Light Reading, 1/27/2015
LightSpeed Looks to Plug the Gigabit Gap
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 1/23/2015
Parks Predicts HBO OTT Success
Mari Silbey, Independent Technology Editor, 1/23/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Weekly Executive Interview
Join us live for Light Reading's interview with Jay Samit, the newly appointed CEO of publicly traded SeaChange International Inc. With a resume that includes Sony, EMI, Universal, Intel and Microsoft, Samit brings a reputation as an entrepreneur and a disruptor to his new role at the video solutions company. Hear what he has to say about the opportunities in video, as well as the outlook for cable, telco, OTT and mobile service providers.