Ericsson's SPIT Vision

5:30 AM -- Ericsson AB (Nasdaq: ERIC) CEO Hans Vestberg provided a little more insight into his company's decision to splash US$1.15 billion on the proposed acquisition of Service Provider Information Technology (SPIT) giant Telcordia Technologies Inc. during today's second-quarter earnings call. (See Ericsson's Growth Spurt Continues and Ericsson to Buy Telcordia.)

Ericsson is already a significant player in the OSS, BSS, service delivery platform (SDP) and IMS (IP Multimedia Subsystem) sectors which, coupled with its managed and professional services strengths, makes it a key partner for network operators looking to strengthen their SPIT capabilities.

But new opportunities are emerging, noted Vestberg on today's conference call. "In the past, systems integration deals used to be focused on the mobile core but now they are more about complex ICT deals" that involve networks and IT systems. In fact, Vestberg said Ericsson had been awarded 11 new systems integration contracts in OSS, BSS, SDP and data center build-outs.

The CEO believes Telcordia will give Ericsson the additional tools it needs to meet the changing demands of operators that are about to embark on significant transformation projects, which he believes will be driven by the shift towards strategies based around mobile broadband services delivered to smartphones.

"OSS and billing systems will be [upgraded/replaced] during the next three to four years. We have a good portfolio and we have announced the intention to acquire Telcordia," a move that will "make us a leader."

For more on Ericsson's SPIT plans and how the Telcordia deal fits into the market check out the following articles:

— Ray Le Maistre, International Managing Editor, Light Reading

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