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Ericsson Buys Mobile SPIT Specialist

Ray Le Maistre
LR Mobile News Analysis
Ray Le Maistre, Editor-in-Chief
12/22/2010

Ericsson AB (Nasdaq: ERIC) has acquired mobile network optimization system specialist Optimi for an undisclosed sum to boost its multi-vendor network management customer base and capabilities. (See Optimi Offers WiMax, HSDPA.)

Optimi, which has its headquarters in Spain and offices in Brazil, Dubai, and the US, employs around 200 staff and has major mobile operator customers all over the world, including AT&T Inc. (NYSE: T), China Mobile Ltd. (NYSE: CHL), Reliance Communications Ltd. , Telefónica Móviles SA , Telstra Corp. Ltd. (ASX: TLS; NZK: TLS), T-Mobile International AG , Vivo Participacoes SA , and Vodafone Group plc (NYSE: VOD). It also works with a number of major equipment vendors, mainly Ericsson but also, for example, Huawei Technologies Co. Ltd. (See Optimi Wins OSS Deals, Telefónica Picks Optimi, Oman Mobile Picks Optimi, and Huawei Picks Optimi.)

Ericsson says the deal will "reinforce and consolidate Ericsson's leadership position in multi-technology, multi-vendor, Self-Organizing Networks (SONs) and OSS-based network optimization."

Why this matters
Telecom software such as Optimi's OSS tools can help carriers get the most out of their existing 2G and 3G networks, and plan their LTE rollouts efficiently -- increasingly important capabilities as operators seek to build and manage their networks with the lowest possible capital and operational expenditure.

For Ericsson, this acquisition will strengthen its proposition in the professional services sector -- including consultancy, planning, and managed services -- where multi-vendor capabilities are essential.

That makes Optimi a smart addition to Ericsson's portfolio, especially as network infrastructure becomes increasingly commoditized, leaving vendors ever more reliant on their Service Provider Information Technology (SPIT) systems and professional services offerings to help them differentiate themselves.

For more
Ericsson has been building up its SPIT and professional services capabilities with a number of strategic acquisitions, but it's not the only one with that idea:

— Ray Le Maistre, International Managing Editor, Light Reading


Interested in learning more on this topic? Then come to Subscriber-Centric 4G & Advanced Services: Using OSS/BSS to Drive Revenue in 2011, the first stop in our Service Provider IT Global Event Series. To be staged in London, Jan. 25, admission is free for attendees meeting our prequalification criteria. For more information, or to register, click here.


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Mergerman
Mergerman
12/5/2012 | 4:15:21 PM
re: Ericsson Buys Mobile SPIT Specialist


Raymond James served as the investment banking advisor to Optimi

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