O2 upgrades HLR

O2 is spending £10m revamping it's mobile registration database system (know as an HLR or Home Location Register) as it has suffered 2 major outages in as many months. The HLR stores the customer IMSI (SIM number) and their real telephone number as well as location and other information. When a call comes in, the HLR is queried to find out how do deliver the call the mobile. If the HLR fails, then mobile calls will not work (as mobiles cant register on to the network) and calls to mobiles will fail too. The current HLR (or cluster of HLRs) are made by Ericsson and O2 is buying new systems.

Sony Ericsson drops Ericsson for €1.05

Sony Ericsson is departing ways with Ericsson and Ericsson is being paid €1.05bn for the privilege. Sony will incorporate the phone division into it's networking and connected devices devision and will retain IP rights.

The partnership was formed 10 years ago with Sony and Ericsson owning an equal 50% stake, both had declining phone divisions. In the 10 years the market has progressed to smartphones and Sony has incorporated technologies from other divisions into the phones themselves such as their Cybershot cameras and Playstation Portable.

Ericsson were a world leader in cellular radio systems, but much of the handset radio technology is now available from established chip vendors so Ericsson's value to SE is less.

Sony will now continue to drive the smartphone market but as part of Sony Corporation directly.

Ericsson buys Nortel's GSM assets

Ericsson has acquired the North American GSM assets of bankrupt Nortel for $70m, this follows their successful purchase of the North American CDMA and LTE assets (for $1.13bn).

The GSM equipment is used by AT&T Mobility and T-Mobile USA. Ericsson also get 350 ex Nortel employees. The GSM operation made about $400m for Nortel last year, so the buy seems quite a steal.

The European and Taiwan assets were bought by Austrian firm Kapsch CarrierCom for $33m.

Tandberg TV go for $1.39bn

Ericsson is trying to buy Tandberg for $1.39bn, though ARRIS may yet up their bid.

Tandberg used to specialise in videoconferencing systems, though have moved in to the IPTV world and that's where the big money is going to be. Everyone will be watching TV through an internet connected set top box and everyone wants to be in that space.

Cisco bought Scientific Atlanta for the same reason.

Though IPTV is in its infancy, it's the future and everyone knows it - though the business models (and infrastructure) are still big unknowns. However the big players know they've got to do something now so they're in a position to grab the market when it does take off.

It's a big gamble, but one that is likely to pay off in the long term.