Telecom network and software maker Ericsson is set to acquire Abentel, a subsidiary of Abengoa, for enhancing its fiber services offering.
The agreement to acquire the Spanish technology company reinforces Ericsson’s leadership position in telecommunication services specifically in Fiber Network Deployment and maintenance.
Ericsson will add about 500 services professionals specialized in fiber networks roll-out and maintenance services.
The Swedish company did not disclose financial details.
Ericsson said the demand for fiber-optic transmission is growing to accommodate increasing bandwidth requirements driven by new applications, specifically video services. According to the Ericsson Mobility Report 85 percent of data traffic generated by the use of smartphone video apps goes over Wi-Fi, mainly indoors.
“Fiber is a key component for the next generation all-optical IP network. By acquiring Abentel’s capabilities and coupling them with Ericsson’s service offering, Ericsson can deliver unmatched scalability for its customers’ fiber projects,” said Richard Hoepner, head of Network Roll-Out and Customer Support, Ericsson.
