Ericsson has decided
to buy Telcordia for $1.15 billion. The telecom infrastructure major announced
that it reached an agreement with Providence Equity Partners and Warburg Pincus
to acquire 100 percent of the shares of Telcordia.
Telcordia is
a global provider of mobile, broadband and enterprise communications software.
“The importance
of operations and business support systems will continue to grow as more and
more devices are connected, services become mobile and new business models for
mobile broadband are introduced. In this context, Telcordia brings very skilled
people and knowledge, a large business in North America and other markets, as
well as a good multi vendor product portfolio,” said Hans Vestberg,
president and CEO, Ericsson.
“We have global
presence and scale, global services capabilities and superior knowledge about
networks and network performance, as well as an already established position in
the OSS/BSS space. It is a perfect fit,” Vestberg added.
One of the main
challenges for operators is how to handle the growth in mobile and fixed
broadband traffic, as well as the new types of connected devices, services and
applications and the high expectations on user experience, while at the same
time increasing the efficiency in business and operations.
OSS and BSS are
critical areas to handle this challenge and to simplify the processes that
support the business. They drive the customer experience and serve as the
engine to monetizing traffic, offerings and products that operators sell. All
in all, these systems are crucial to create the experience users expect in a
cost efficient manner.
“The combination
of Ericsson’s global leadership position and Telcordia’s long-standing
expertise in solving the most complex communications challenges will benefit
customers through new services and expanded capabilities,” said Mark
Greenquist, president and chief executive officer, Telcordia.
“Together, we
will lead the way into a new era of converged communications, while expanding
our offerings to manage the world’s most dynamic networks. Ericsson’s
acquisition of Telcordia signals their commitment to their future strategy to
capitalize on the growth opportunities in the OSS/BSS communications
industry,” Greenquist added.
The OSS/BSS is a
growing market driven by the demand for business efficiency, innovation and
high quality user experience. In 2010, the market for software and systems
integration is valued at about $35 billion and is expected to show a compound
annual growth rate between 6-8 percent between 2010 and 2013. In addition,
there is an attractive market for outsourced and hosted managed services,
growing in the same range.
The deal creates the
leader in Service Fulfilment, Service Assurance and Network Optimization and
gives Ericsson a leading position in real-time charging and significant
capabilities to support operators end to end. The combination will address the
needs of Communications Service Providers to deliver mobile broadband and
operational transformation to their subscribers.
By TelecomLead.com Team
editor@telecomlead.com
