Ericsson-Cisco Partnership Gets Vodafone Hutchison Australia Contract
January 16 2017 - 3:29AM
Dow Jones News
By Matthias Verbergt
STOCKHOLM--Ericsson AB (ERIC) and Cisco Systems Inc. (CSCO)on
Monday said they will overhaul the telecommunications network of
Vodafone Hutchison Australia, which they described as is their
largest deal since the two networking giants announced a
partnership.
The five-year deal, whose valuation wasn't disclosed, is a sign
that Ericsson and Cisco's alliance is starting to bear fruit more
than a year after its creation, analysts say.
Ericsson and Cisco will upgrade the Australian service
provider's infrastructure by harmonizing hardware and software
components and integrating mobile and fixed networking equipment to
prepare it for next-generation applications such as virtual
reality, autonomous driving and ultra-high-definition video.
Ericsson, a specialist in mobile equipment, in November 2015
said it would partner with Cisco, which dominates the market for
fixed internet gear such as routers and switches, to counter
mounting competition from Nordic rival Nokia Corp. and China's
Huawei Technologies Co., which both offer a broader range of
fixed-network equipment in-house.
Ericsson said both companies have jointly started over 250
active customer engagements and more than 60 deals have been
closed. Earlier this month, Ericsson and Cisco extended their
partnership to include Wi-Fi solutions.
With the Cisco partnership gaining speed, Bengt Nordström, head
of Swedish telecom consultancy Northstream, said Ericsson and Cisco
seem to be on course to reach their target of 1 billion in
additional sales for both companies by 2018.
The telecom-equipment industry suffers from slowing demand as
spending by mobile-service providers on latest-generation, or 4G,
networks largely has dried up, with most mobile-broadband projects
having been completed in 2015.
Monday also marks the first day of Borje Ekholm as Ericsson's
chief executive. Mr. Ekholm's appointment was announced in October
last year, three months after the company ousted Hans Vestberg.
Ericsson said Jan Frykhammar, the current acting CEO, will be an
adviser to Mr. Ekholm.
Write to Matthias Verbergt at Matthias.Verbergt@wsj.com
(END) Dow Jones Newswires
January 16, 2017 04:14 ET (09:14 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
Hutchison Telecommunicat... (ASX:HTA)
Historical Stock Chart
From Nov 2024 to Dec 2024
Hutchison Telecommunicat... (ASX:HTA)
Historical Stock Chart
From Dec 2023 to Dec 2024