Ericsson has agreed on a deal to take over Microsoft's Mediaroom streaming video service.
The telecoms giant said that it would be acquiring the IPTV service from Redmond in an effort to boost its holdings in the streaming television space. Once the deal becomes official, Ericsson estimated that it will control some 25 percent of the market.
Terms of the deal were not disclosed. Ericsson said that it plans to integrate the Mediaroom business into its business unit support solutions brand.
Ericsson said that the deal will bring its total IPTV holdings to 40 customers and more than 10,000 households in what the company believes will be a $32bn global market over the coming year.
"Ericsson's vision of the Networked Society foresees 50 billion devices to be connected via broadband, mobility and cloud," said Ericsson business unit support solutions vice president Per Borgklint.
"Future video distribution will have a similar impact on consumer behaviour and consumption as mobile voice has had."
Ericsson has been pushing IPTV among a number of other services for its telecoms carrier customers in recent years. The company believes that such services will be key to getting ahead in a booming mobile market.
For analysts, the deal marks a larger expansion by Ericsson into a complete service supplier for telecom firms. Research firm IHS noted that with the deal Ericsson will have an arsenal of product and service offerings that competitors will be hard-pressed to match.
"With the acquisition of the largest IPTV middleware provider, Ericsson now becomes the leading IPTV set-top box middleware provider, serving a fifth of the world’s IPTV homes,” said IHS senior principal analyst for TV technology Daniel Simmons.
"With the company now able to offer IPTV network equipment, integration services and middleware, it is better positioned to serve the needs of leading telcos, especially as television transitions from a single-screen service to a multiscreen service."
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