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As telecom operators are sharpening their focus on services made available by next-generation networks - networks that are completely based on IP (Internet Protocol) and which provide services such as triple play (video, voice, data) on a single, converged broadband network - they have also recognized that IP-routing and Ethernet switching will be stepping stones in the evolution.

"This deal is a way for us to build the future," says Björn Olsson, Executive Vice President and Deputy General Manager of Business Unit Networks. "We have become a more complete supplier and with the combined strengths of both companies we will create significant value for customers."

The deal generates a multitude of expansion opportunities from the product and technology perspective, as well as from the market point of view. Ericsson will not only leverage its economies of scale and technology leadership to further develop and broaden Redback's products, but will also leverage Redbacks IP technology in new areas such as IP-enabled base stations, IP optical transport, mobile packet and IP Multimedia Subsystem (IMS).

With its IP Edge routers, Redback has become one of the world's leading providers of IP-based network equipment. By integrating Redbacks IP Edge router into its portfolio, Ericsson accelerates market growth and the pace at which the company can make broadband available to everyone - anywhere.

"The response has been overwhelmingly positive," Olsson says. "Redback's and Ericsson's customers alike as well as industry analysts have seen how this is a natural step for us, as we want to take the lead when it comes to next generation's more advanced networks."

Ericsson's customers will be able to make a more coherent offer to their subscribers. The end-user will have access to a larger number of services and it will be easier to introduce new and more advanced services as fixed and wireless networks converge and increase in capacity.

"Redback is all about IP networking and services such as triple play and IP-TV. We are accelerating the pace of IP deployment, in which quality of service requires increasingly smarter routers with higher capacity. Now we can support our customers even better in their transition to all-IP," Olsson says.