Ericsson acquires leading fiber access company Entrisphere

Ericsson (NASDAQ:ERIC) today announced its acquisition of Entrisphere, a company providing fiber access technology, based in Santa Clara, USA. The acquisition strengthens Ericsson fixed broadband access portfolio and its position in converged networks.

Fiber technology is essential for High Definition IPTV and other IP based services with high demand on bandwidth and cost efficiency. Entrisphere has a well proven and competitive product portfolio, ready for large scale deployment.

The Entrisphere acquisition brings a leading IP based broadband access platform ready for volume deployment compliant with both North American and international standards.

Fiber technology is a critical part of the next generation access network and the industry leading standard is known as Gigabit Passive Optical Network (GPON).

Since its first deployment of fiber access solution in 2003, Entrisphere has worked with major operators to deliver IP based services to customers across North America. With its GPON solution already in service in North America and the system being evaluated for deployment by leading telecom carriers around the globe, the acquisition forms an important cornerstone in Ericsson's full service broadband offering.

Kurt Jofs, Executive Vice President and head of business unit Networks, Ericsson, comments: "This acquisition provides us with a very strategic product suite within the fixed broadband access segment. We can continue to build a strong position as operators start to deploy fiber access to deliver new IP based services."

Mark Floyd, CEO, Entrisphere, says: "The agreement between Ericsson and Entrisphere is about accelerating market growth, delivering the business opportunities with fiber access technology and improving the broadband offering to telecom operators all over the world."

Entrisphere was founded in 2000 in Santa Clara. The company employs about 140 people, including important R&D resources.

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