China's telecommunications market is immense, but has been a tough nut to crack for outsiders. This morning, Ericsson has taken another swing at it with a definitive agreement to acquire Sunrise Technology.
Sunrise is based in Guangzhou, the province bordering on Hong Kong that has long been one of the country's economic engines. They provide IT services for telecommunications, and especially in the backoffice world of OSS/BSS. They have about a thousand employees, all of whom will be joining Ericsson when the deal closes.
Adding that local talent with its existing universe of connections within China is what Ericsson is after here, because there is no other way to break into the web of existing relationships that make up the Chinese business environment. Of course it also entangles them in those relationships, which western companies have found to be difficult to truly leverage in recent years.
Ericsson has been quite acquisitive over the past few years when it comes to OSS/BSS of course, acquiring Telcordia, TeleOSS and Telcocell, GEOSS, and TimelessMIND over the past four years or so.
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