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read moreEricsson returns to enterprise telephony: buys Nortel's half of LG-Nortel
Stuart Corner
Wednesday, 21 April 2010 15:48
Less than two years after exiting the enterprise telephony market by selling its business to Aastra, Ericsson has got back in again by buying Nortel's half of LG-Nortel, Nortel's joint venture with Korean manufacturer LG.
LG-Nortel was established in 2005 through the contribution by LG Electronics of its telecommunications systems business and by Nortel of its Korean distribution business.
The company is a significant player in the Australian enterprise telephony market through local distributor, Aria Technologies, which supplies LG-Nortel products via Telstra and through its own channels.
Managing director, Rob Pierce, told ExchangeDaily: "We have about 55 percent of the Telstra Business Systems installations and Telstra is about half our business so that equates to about 28-30 percent overall [of the 1-100 end point SME system market]."
Having acquired Ericsson's; enterprise telephony business in late 2008, Aastra said it would attempt to ramp up its operations in Australia and revitalise relationships with former Ericsson channel partners.
Soon, Aria will be trying to trade of the legacy of the Ericsson bran. Pierce said he believed the rebranding of LG-Nortel as LG-Ericsson would be a good thing for the company in Australia. "The branding will be very powerful for us because of the long association Ericsson has had in this country with high quality communications and basic backbone communications'¦Ericsson has a very strong foothold in telecommunications in Australia."
When it announced the sale of its enterprise telephony arm to Aastra in February 2008, Ericsson said: "Ericsson has a strategic focus on telecommunication operators and service providers, hence considers its enterprise PBX solutions business to be outside its core focus. In addition, the enterprise communications industry is becoming increasingly global and is clearly gravitating toward consolidation."
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