Moto Leans on Ericsson's LTE
In the partnership announced today, Moto will supply its "public safety optimized" LTE core equipment, while Ericsson will contribute the LTE access equipment as well as some packet core technology and related services. But why Ericsson, and not, for example, Alcatel-Lucent (NYSE: ALU) or Nokia Siemens? (See NSN to Buy Moto's Wireless Biz for $1.2B , NSN Expands in North America With Moto Buyout, Nortel Wireless Winner: It's Ericsson!, Ericsson Delivers Knockout Blow to NSN, and Moto Seeks $50M for LTE Safety Network.)
"It seems highly likely to me that Alcatel-Lucent would have been very interested in partnering up with Motorola in this way," says Heavy Reading senior analyst Patrick Donegan. "That approach would also have led to some market consolidation among vendors, which the public safety market could arguably do with.
"On the other hand, this partnership allows the development of a competitive market in LTE-based public safety solutions. Critically, it also provides what may be the only basis upon which Ericsson would have considered entering this market. Ericsson’s commitment is likely going to be significant in determining the rate of adoption of LTE by the public-safety community."
— Michelle Donegan, European Editor, Light Reading Mobile