Ericsson to buy Microsoft Mediaroom

Swedish vendor eyes bigger share of IPTV infrastructure and services market
Ericsson to buy Microsoft Mediaroom, IPTV

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Swedish telecoms vendor, Ericsson, has reached an agreement with Microsoft to acquire its TV solution Mediaroom business. The deal will make Ericsson the leading provider of IPTV and multi-screen solutions with a market share of over 25%, the vendor said in a statement. The deal is expected to closing during the second half of 2013.

“Mediaroom is the leading platform for video distribution deployed with the world’s largest IPTV operators,” said Per Borgklint, senior vice president and head of business unit support solutions at Ericsson. “This strategic acquisition positions Ericsson as an industry leader thanks to the skills and experiences of the talented people of Mediaroom combined with Ericsson’s end to end service capabilities.”

The global IPTV market is estimated to reach 76 million subscribers in 2013 with revenues of $32 billion, growing to 105 million subscribers and $45 billion in 2015.

The total media solution portfolio of Ericsson in the TV and video space combined with a further increased focus on consumer needs will be the foundation for providing services to end users, Ericsson said. The importance of video distribution capabilities for the customers and their consumers will be increasing as more and more LTE networks are deployed and filled with smartphone users.

Tom Gibbons, corporate vice president of Microsoft Corporation, said: “We are proud of the number one IPTV market position that we have achieved with Mediaroom. Ericsson’s complementary portfolio of TV and networking services will help drive the future growth and development of Mediaroom. Ericsson is positioned to be a valuable strategic partner for operators and TV service providers around the world as the IPTV market evolves.”

Microsoft Mediaroom, which is based in California and employs 400 people, is the TV technology behind many of the world’s leading television service providers like AT&T U-verse, Entertain of Deutsche Telekom, Telefonica, TELUS Optik TV and Swisscom. Mediaroom-powered TV services are offered on more than 22 million set top boxes deployed throughout the Americas, EMEA and APAC.

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