August 23, 2012
Calix to Acquire Fiber Access Assets from Ericsson
By Ed Silverstein
Ericsson's fiber access assets expected to be included in the deal are the Ericsson EDA 1500 GPON solution as well as its complementary ONT portfolio. A global reseller agreement lets Ericsson sell Calix (News - Alert) Unified Access systems and software as its preferred fiber and VDSL2 access solution in 180 nations. The partnership becomes effective when the deal closes and stays effective for three years. The transaction is expected to close by the Q4 of 2012. Financial terms of the transaction were not disclosed.
Additionally, Calix is expected to offer jobs for up to 61 U.S.-based employees of Ericsson.
"This partnership provides Calix, already North America's fiber access deployment leader, with an extensive new global reseller channel, while our acquisition of Ericsson's fiber access portfolio delivers powerful new complements to our industry-leading Unified Access portfolio," Carl Russo, president and CEO of Calix, said in a statement.
"This partnership, built on a clear alignment of corporate strategy and direction, allows Ericsson to fully leverage its strengths in wireless and end-to-end services while relying on Calix to provide innovation and expertise in fixed-line broadband access."
"We believe that this partnership will provide our existing fiber access customers with world-class support and maintenance, and an expanded portfolio of access systems and software from a leading company totally focused on access," Jan Haglund, vice president and head of product area IP and broadband at Ericsson, added in a statement carried on TMCnet.
Over 40 percent of mobile traffic globally, goes through Ericsson networks, operating in 180 nations worldwide.
In a related matter, Ericsson, serving as the world’s largest network-equipment vendor, has seen a drop in gross margins, according to The Wall Street Journal. The decline comes as a result of “slowing equipment demand and the company's decision to pursue market share through low-margin network upgrades in Europe,” The Journal added.
In related news, Sony Mobile Communications said it is laying off about 1,000 workers, and in October, will move its headquarters from Lund, Sweden, to Tokyo, according to TMCnet. In February, Sony took complete control of the mobile phone joint venture with Telefon AB L.M. Ericsson, TMCnet added.
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Edited by Allison Boccamazzo
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