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Ericsson acquires leading fiber access company Entrisphere


February 12, 2007, Ericsson (NASDAQ:ERIC) today announced its acquisition of Entrisphere, a company providing fiber access technology, based in Santa Clara, USA. The acquisition strengthens Ericsson fixed broadband access portfolio and its position in converged networks.

Fiber technology is essential for High Definition IPTV and other IP based services with high demand on bandwidth and cost efficiency. Entrisphere has a well proven and competitive product portfolio, ready for large scale deployment.

The Entrisphere acquisition brings a leading IP based broadband access platform ready for volume deployment compliant with both North American and international standards.

Fiber technology is a critical part of the next generation access network and the industry leading standard is known as Gigabit Passive Optical Network (GPON).

Since its first deployment of fiber access solution in 2003, Entrisphere has worked with major operators to deliver IP based services to customers across North America. With its GPON solution already in service in North America and the system being evaluated for deployment by leading telecom carriers around the globe, the acquisition forms an important cornerstone in Ericsson’s full service broadband offering.

Kurt Jofs, Executive Vice President and head of business unit Networks, Ericsson, comments: “This acquisition provides us with a very strategic product suite within the fixed broadband access segment. We can continue to build a strong position as operators start to deploy fiber access to deliver new IP based services.”

Mark Floyd, CEO, Entrisphere, says: “The agreement between Ericsson and Entrisphere is about accelerating market growth, delivering the business opportunities with fiber access technology and improving the broadband offering to telecom operators all over the world.”

Entrisphere was founded in 2000 in Santa Clara. The company employs about 140 people, including important R&D resources.

The addressable market for IPTV services is as big as the fixed-broadband market - which, in another five years, will be approaching 600 million access lines.

Ericsson is shaping the future of Mobile and Broadband Internet communications through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication companies in the world.


About Entrisphere

Entrisphere was provides the broadband access solutions to major telecom carriers in North America. It flag ship product is the BLM 1500 GPON system and the T-Series of Optical Network Terminals. Entrisphere was founded in 2000 and is head quartered in Santa Clara, CA. Entrisphere has 140 employees.

About Gigabit Passive Optical Network (GPON)

Gigabit passive optical networks (GPON) build on a series of technology enhancements that extend and improve on earlier forms of passive optical networks (PON). Like its predecessors, GPON is a point-to-multipoint technology in which a single optical port (optical line terminal, OLT) communicates, by means of an optical splitter, with multiple subscriber devices (optical networks terminal, ONT) over common optical fiber. In point-to-point technologies, by contrast, each OLT is connected by a dedicated fiber to a single ONT.
Sharing the OLT port and a substantial par of the fiber cable plant reduces the costs of opto-electronics, cabling, and civil works.


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