Under a strategic alliance announced today, the companies together will provide IP-based services and consulting to telecom carriers. The move comes as equipment manufacturers press network operators to hasten their migration to IP-based delivery.
Many of the largest telecom carriers have been moving slowly in upgrading their networks from circuit-switching to packet-switching, despite efforts by manufacturers to trumpet the cost-savings and efficiency benefits of converged networking.
"Ciscos expertise in Internet and networking technologies makes us the natural choice for service providers seeking to integrate IP-based technologies into their networks," said Cisco President and CEO Jon Chambers, upon announcing the alliance.
The companies announced that Telefonica de Argentina S.A. and Telstra Corp. Ltd. of Melbourne, Australia, have shown interest in the new alliance.
Under the joint agreement, the companies will offer services built on Cisco routers and Ericssons Engine softswitch products. The companies will also provide a broadband access system made up of Ericssons IP-based DSL multiplexer and Ciscos Ethernet switches.
Cisco will benefit from Ericssons customer knowledge and strong heritage in telecommunications infrastructure, according to Dan Scheinman, senior vice president of Corporate Development at Cisco. San Jose, Calif.-based Cisco will bring its customer relationships, IP portfolio and IP routing to the deal. Ericsson is based in Stockholm, Sweden.