Ericsson Exits Fibre Access With Calix Deal

By Tony Chan


Ericsson has sold off its fibre optic access assets in a deal with broadband access specialist Calix to focus on IP and mobile broadband. Under the scope of the deal, Calix will acquire specifically Ericsson’s EDA 1500 gigabit passive optical network solution and complimentary optical network terminal portfolio, as well as take on about 60 Ericsson employees in North America. Calix will also take over ongoing support of the acquired products for existing Ericsson customers. 


The companies expect the deal to close in the fourth quarter of this year, pending finalisation of transition services agreements and customary closing conditions. No financial terms were disclosed as part of the deal. 


In conjunction with the deal, the two companies also signed a global reseller agreement that will see Ericsson make Calix’s Unified Access portfolio as their preferred fibre access solution across its global business. As such, Ericsson will continue to provide fibre and copper access products as part of end-to-end solutions for fixed and mobile operators, Ericsson said. 


According to Ericsson, the deal is part of its strategy to focus on “4th generation IP and mobile broadband.” The deal follows Ericsson’s exit from the handset business last year. 


Ericsson is not the only vendor that is refining its strategy to focus on core and profitable segments. Earlier in the year, Nokia Siemens Networks sold its fibre access business to ADTRAN and its microwave business to DragonWave while Alcatel-Lucent sold off its enterprise business to Permira late last year. www.commsday.com  

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