Swedish network equipment manufacturer and telecom giant Ericsson has announced the acquisition of antenna technology company Kathrein, based in Germany, to boost the company’s 5G product portfolio where antenna technology has a huge strategic importance.
As part of the statement, Ericsson said that the acquired company recorded sales of 270 million euros in 2018 which excludes the sales to Ericsson. The Kathrein acquisition deal will see the addition of 4000 of Kathrein’s highly skilled professionals working in R&D, sales and production operations based in 20 locations including China, Mexico, U.S, Romania and Germany to Ericsson’s workforce.
The chief executive at Ericsson Borje Ekholm said that the new acquisition deal will be helpful in strengthening Ericsson’s position in 4G and consequently to 5G. He added that the decision is of a very strategic importance to the company.
The next generation 5G network services is increasingly looking for the use of antenna technology to offer better performance. The company said that to provide high-performance 5G networks, there is a necessity to invest in the development of antenna technology to enable the needed coverage, capacity and performance.
The company which competes with world’s largest network equipment manufacturers like Chinese Huawei Technologies and Finland’s Nokia said that both the companies have agreed on not disclosing the purchase price of the deal. The acquisition deal has paved way for the development of next generation of radio network products while broadening the company’s antenna and filter product portfolio.
Kathrein is company based in Rosenheim, Germany which was founded in 1919. The company which is an existing supplier of Ericsson’s, is one of the global leaders in providing antenna and filter technologies. Over the years, the company has invested strongly in research and development and has a strong and extensive IPR portfolio.
Alongside, Ericsson has also announced collaboration with India’s leading telecom service provider, Airtel. The partnership is aimed at developing predictive and intelligent network operations by using Artificial Intelligence. Ericsson, with deep domain expertise in advanced technologies such as automation and Artificial Intelligence will support Airtel in its effort to boost user experience and address network complexity issues.
Since 2004, Ericsson has been the managed service partner of Airtel and currently manages the Indian telecom operator’s VOLTE, LAN/WAN, Intelligent Network, 4G/LTE and 2G/3G technologies.