Ericsson ups fiber-optic deployment services with Abentel acquisition

Ericsson (NASDAQ:ERIC) has beefed up its fiber-optic network deployment services capabilities with an agreement to buy Spanish company Abentel, an Abengoa (NASDAQ:ABGB) subsidiary. Terms of the deal were not disclosed.

The Swedish company has shifted much of its optical communications activities from systems provision to fiber-optic network deployment and maintenance services provision. It has partnered with Ciena for the supply of packet-optical transport systems (see "Ericsson, Ciena pair on packet-optical transport, SDN development") and says it also has partners through which it can provide partnerships supply and provisioning of broadband access networks. This latter capability was the focus of Ericsson's presence at last month's FTTH Connect Conference in Nashville, TN.

"Fiber is a key component for the next generation all-optical IP network," said Richard Hoepner, head of Network Roll-Out and Customer Support at Ericsson. "By acquiring Abentel's capabilities and coupling them with Ericsson's world-class service offering, Ericsson can deliver unmatched scalability for its customers' fiber projects. This agreement is a winning combination as it brings together the global leader in telecommunications services with one of the leading fiber-related service providers in Spain."

The acquisition will see approximately 500 services professionals specialized in fiber networks roll-out and maintenance services join Ericsson. The company expects to close the deal in the third quarter of this year, subject to the usual closing conditions, including approval from Spain's competition authority.

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