Ericsson enters IPTV market

Ericsson is about to step into the IPTV market. It has stated in the past its desire to be a player in the telco video world, but it has gotten off to a slow start.

Ericsson has been setting the stage for its IPTV move by purchasing other tech companies. Last year it was Marconi. This year it is Redback Networks, Inc, which is known for its edge IP router.

The move will be beneficial for both: Ericsson should be able to build on Redback’s recent momentum and Redback will have the muscle that it has lacked.

Redback’s competition has been the larger IPTV industry leaders like Cisco, leaving many to speculate Redback’s ability to be a viable competitor because of its small size. Eriksson’s global footprint and carrier relationships should act as a support to the growing revenue stream.

The move of Ericsson on Redback will finally end the speculation about a possible Ericsson – Juniper match. The two had been in talks, but they were probably ended over money.

It is the Juniper investors that will likely be the most disappointed. They stood to gain from the possible buyout.

Redback is in the process of bringing out gateway products for wireless networks. It is also set to bring out Ethernet switches in the future. These two factors will likely enhance the available opportunities.