Ericsson has become the latest long standing telco equipment vendor to outline its IP ambitions, including growing the business by more than 20 per cent a year.
However it has ruled out a "mega merger" strategy, cutting out the likelihood of it making a bid for a data networking giant in the league of rival Nortel's acquisition of Bay Networks.
Sven-Christer Nilsson, who was installed as chief executive six months ago, said Ericsson wants to combine wireless communications with IP networking. It has already begun to integrate IP router technology into its wireless systems, with cellular technology being exported to local area networks.
Nilsson said Ericsson would pursue a "selective acquisition policy" focusing on small to medium sized firms. "We think this is a much smarter strategy than pursuing a mega merger, which would be prohibitively expensive and dilutive of earnings."
Ericsson recently reorganised its business into three customer segments: operators and service providers, enterprises and consumers, as its first step towards the new direction.
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