Ericsson acquires Entrisphere

Ericsson acquires Entrisphere

Acquisition gives Ericsson a GPON essential for High Definition IPTV and other IP-based services

As expected, Ericsson this week announced its acquisition of

The market for IPTV services is as big as the fixed-broadband market -- which, in another five years, will be approaching 600 million access lines, Ericsson says.

Other analysts believe Ericsson could have made a bigger bang to fulfill its North American fixed broadband access aspirations.

"If Ericsson is serious about becoming a major player in the N.A. wireline space, the Entrisphere acquisition is a little puzzling," says Ken Twist, Vice President, Technology Consulting and Broadband Networks Practices at Ovum-RHK. "This certainly gives them a shot at some AT&T GPON business, but the volume is not guaranteed and you still have Tellabs, Motorola, Alcatel, and perhaps Calix to contend with. A more aggressive acquisition for Ericsson might have been Tellabs. While this would have been a lot more expensive, they would become the largest N.A. FTTP supplier right away."

Entrisphere, which was founded in 2000, first deployed its fibre access system in 2003. Its GPON system is already in service in North America and is being evaluated for deployment by other global telecom carriers, Ericsson says.

Entrisphere employs about 140 people.

Ericsson has been on a broadband access acquisition tear lately. The telecom giant announced plans to acquire Redback Networks late last year; and it purchased Marconi and its broadband access portfolio in 2005.

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