Ericsson acquires a 75 percent stake in Danish company Telebit Communications A/S, which is specialized in developing the new generation Internet. The company's technologies are key elements for a robust mobile Internet with carrier-class quality.
The investment over the next two years will be approximately DKK 200 million (approximately MUSD 30). Ericsson will get Telebit's unique competencies and proven solutions. The move is a further step in Ericsson's strategy to acquire small to medium sized specialist companies that complement its core strengths.
Telebit is the first vendor to provide commercially available Internet router solutions based on new generation Internet standards, commonly referred to as IP Version 6 (IPv6). The company's dual IPv4/IPv6 products interoperate with IPv4 systems as well as IPv6, the new generation Internet.
Software from Telebit's strong portfolio of IPv6 and multi protocol solutions will be further enhanced and integrated into Ericsson's mobile network offerings. The enhanced software is an important element to ensure the demands of Quality of Service for combined voice, multimedia, and data traffic, as well as security, in IP mobile networks.
IPv6 enables more Internet Protocol addresses to meet the needs of the growing mobile terminal market. The growing number of users who want to use mobile phones and other devices to connect to the Internet is rapidly exhausting the number of available IP addresses.
Telebit is distinctive in having started developments directly focused on IPv6 solutions. The company's unique Internet competence provides Ericsson with already available and proven solutions to optimize wireless IP networks. The acquisition underscores Ericsson's determination to rapidly extend its leadership position in mobile systems that offer users the benefits of truly mobile Internet.
Ericsson is the leading provider in the new telecoms world, with communications solutions that combine telecom and datacom technologies with freedom of mobility for the user. With more than 100,000 employees in 140 countries, Ericsson simplifies communications for its customers - network operators, service providers, enterprises and consumers - the world over.
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