Ericsson to buy Redback Networks for $US2.1 billion

Stuart Corner
Wednesday, 20 December 2006 15:52

IT Industry - Deals

The total addressable market for IP edge routing is expected to exceed $US5 billion by 2009, according to the Yankee Group. Ericsson and Redback say there is market opportunity to upgrade more than two billion wired and wireless users worldwide over the next ten years to all IP-based broadband infrastructures. "This opportunity is ten times larger than the 250 million broadband users today. On a worldwide basis, all carriers have some plans to unify communications and entertainment services over IP-based broadband networks."

Redback Networks claims to manages 50 million broadband connections for 15 of the top 20 telephone carriers worldwide, and to have more than 500 carrier customers worldwide Its multi-service routing platform delivers next generation broadband services such as VoIP, IPTV and on-demand video.