Following a partnership that was formed between Cisco and Ericsson in November 2015, clinching the Telefonica Guatemala deal and offering new Wi-Fi solutions are some of the results that the collaboration has yielded. When the partnership was being formed, it was envisaged that each firm would gain an additional $1 billion in revenues by the year 2018. And for Ericsson, the Sweden-based company stood to enjoy an improved position with regards to overcoming the stiff competition presented by Huawei and Nokia.
In the deal with Telefonica Guatemala, the Latin American telecommunication company will roll out a new network backbone that will use Cisco routers such as ASR 1001 and ASR 9010. Ericsson will, on the other hand, offer integration services in the deal.
“The combination of Ericsson’s and Cisco’s leading integration services and IP routers will enable Telefonica’s network modernization. It allows Telefonica to address the high demand of new subscribers,” part of a statement by Ericsson’s vice president for Latin America and Caribbean, Clayton Cruz read.
With regards to the new Wi-Fi solutions, Evolved Wi-Fi Networks (EWN) is the brand name of the new integrated offering from the two companies. The integrated offering consists of core networks and 3GPP from Ericsson and Wi-Fi that is based on internet protocol from Cisco. It is targeted for deployment in small indoor settings such as stadiums, restaurants, and malls besides also operator Wi-Fi for telecommunication firms. By 2020, Wi-Fi traffic is expected to increase by 50% of the aggregate IP traffic.
Europe and The Caribbean
Besides the deal with Telefonica Guatemala, Cisco and Ericsson partnered on other projects in 2016. This included deals in Europe and the Caribbean for firms such as Cable & Wireless, Aster Dominican Republic, Vodafone Portugal and 3 Italy. Since the beginning of the partnership between the two, over 60 deals have been completed.
The partnership between Ericsson and Cisco was partly motivated by the painful restructuring processes they are both undertaking. In August 2016, Cisco revealed that it would lay off 5,500 employees while Ericsson announced the axing of 3,000 positions in October 2016.
In Friday’s trading, Cisco Systems, Inc rose by 0.10% to close the day at $30.07. Telefonaktiebolaget LM Ericsson, on the other hand, rose by 0.68% to close the day at $5.92.