Ericsson Will Purchase Microsoft TV Business?

Ericsson Will Purchase Microsoft TV Business?

Ericsson, the Swedish telecom equipment maker has reached an agreement to purchase property of Microsoft Mediaroom, specializing in IPTV solutions and multi-screen, used for the delivery of Internet TV.

The director of the Ericsson Business Unit Support Solutions, Per Borgklint, said that about 50 billion devices are connected via broadband, mobility and cloud, so that the video distribution will impact similar in consumer behavior as it has been the consumption of mobile voice.

“This acquisition helps to reaffirm Ericsson’s leadership position with more than 40 large customers, serving more than 11 million subscribers households,” said Per Borgklint.

According to the company, the global IPTV market will reach 76 million subscribers by 2013, with revenues of 32 billion dollars, while by 2015 these figures will grow to 105 million subscribers and 45 billion dollars in revenues.

The Microsoft’s Mediaroom platform is the TV technology used by television service providers such as AT&T, Deutsche Telekom, Telefonica and Swisscom. It was created in 2007 and is based in Mountain View, California, employing more than 400 people. The deal will close in the second half of the year.

“Mediaroom is the leading platform for video distribution deployed the world’s largest operators of IPTV. This strategic acquisition will positions Ericsson as a leader in the industry with the skills and experiences of people with talent,” said Tom Gibbons, Microsoft’s corporate vice president.

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