Swedish telecom equipment maker Ericsson has confirmed the acquisition of a minority stake in Novatium Solutions, an India-based cloud computing firm.
“Ericsson entered this deal with the aim to speed up broadband enabled services in emerging economies….
Swedish telecom equipment maker Ericsson has confirmed the acquisition of a minority stake in Novatium Solutions, an India-based cloud computing firm.
“Ericsson entered this deal with the aim to speed up broadband enabled services in emerging economies. The agreement offers an exciting opportunity to support an innovative local business in a fast growing market that will further increase the need of mobile broadband,” an Ericsson spokesman told TelecomFinance.
But the Swedish manufacturer refused to disclose the percentage or the value of the stake being acquired.
In a separate statement, Novatium CEO Alok Singh said, “This strategic relationship with Ericsson encompasses multi-fold innovations in the technology, consumer content, and applications and telecom relationships space. It will, therefore, provide impetus to rollout Novatium services globally, with market relevant offerings.”
Novatium, as a distinct business complementing Ericsson’s existing portfolio, will continue to focus on India and selected overseas markets with Ericsson spearheading the overseas business, according to the statement.
Last July, India’s state-owned telecom enterprise BSNL announced that it received bids from several telcos including Ericsson for providing 5.5 million additional lines of connection to expand GSM operations. The Swedish company was also awarded a US$1.3bn contract from Bharti Airtel to expand and upgrade its network in 15 of India’s 22 telecom circles in June this year.
Novatium was not available for comment by press time
