Cisco, Ericsson partner on IP telephony

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Cisco, Ericsson partner on IP telephony

By Laura Rohde

IDG News Service, 04/28/04

Cisco and Sweden’s Telefonaktiebolaget LM Ericsson Wednesday announced they have signed a multi-year agreement to jointly sell IP telephony equipment to global telephone corporations.

The move is partly designed to bring multiservice networks using IP technology to market more quickly, along with the services using those networks, Cisco and Ericsson said in a joint statement.

“It is a wireline agreement for the moment,” said Cisco spokesman David Cook, adding that future wireless agreements between Cisco and Ericsson are a possibility but currently in the realm of speculation. The companies are not disclosing any financial details of the agreement for the time being, he said.

The strategic alliance will combine Cisco’s core routers and switches with Ericsson’s softswitch product line, Cook said. Based on IP packets, softswitches are carrier-class servers that are not tied to the switching hardware they control, and are particularly adept at combining IP voice and data services.

Customers, particularly those that are in the process of modernizing their networks, will benefit from the combination of Ericsson’s solid customer knowledge and strong background of building communication infrastructure and product portfolio, coupled with Cisco’s market-leading IP portfolio, IP routing expertise and its good customer relationships, Cook said.

According to Cisco and Ericsson, existing customers Telefónica SA in Spain and Telstra in Australia have already expressed enthusiastic support for the alliance.

Cisco, in San Jose, has similar agreements with other suppliers such as Motorola, Nokia and Siemens, though the Ericsson deal will have “no impact on those primarily wireless-focused relationships,” Cook said. Lucent also sells Cisco wireless network equipment.

In the wireless market, Ericsson, of Stockholm, has a partnership with Cisco rival Juniper.

Ericsson has recently been highlighting the importance of partnerships as well as outsourcing its services as the company moves ahead with 3G network deployment.

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