Ericsson buys BelAir network for HetNet

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Ericsson buys BelAir network for HetNet

Snaps up Canadian carrier Wi-Fi company as it surrenders to the small cell LTE platform at last

By CAROLINE GABRIEL

Published: 21 February, 2012

READ MORE: M&A | Cable | Infrastructure | LTE | Wi-Fi

Ericsson hasn't exactly led the charge towards modern cellular network approaches such as Wi-Fi integration and small cells. But the Swedish vendor knows it will have to support these key trends, despite the impact on its macrocell stronghold, and it has taken a step with the acquisition of carrier WLan vendor BelAir Networks.

As rumoured a few weeks ago, Ericsson will buy the Canadian company, bringing it carrier-class Wi-Fi technology, a roadmap towards LTE/WLan small cells, and a valuable addition to its US client list. It will be able to use its new unit to expand its US base (in which it complained of a slowdown in spending in its last quarter) without cannibalizing its main range.

In particular, BelAir has made a speciality of supplying WLans to cable operators - including Cablevision, Comcast and Time Warner - and this business is set to become more strategic in the US, as many cablecos are backing away from cellular plans and plan to harness Wi-Fi instead to add a wireless element to their services. There is even talk of the major cable firms joining forces to create a national Wi-Fi network.

BelAir will also help Ericsson to ride the wave of investment in mobile data offload systems by operators, which in the next generation of deployment will look to integrate these Wi-Fi systems more tightly into their own infrastructure and management systems. Its flagship customer in this area is AT&T, which also uses Ericsson (and Alcatel-Lucent) kit for its LTE access networks. Alcatel-Lucent recently announced a Wi-Fi element for its lightRadio architecture with the same trends in mind.

The acquisition of BelAir will no doubt throw a spotlight on other carrier Wi-Fi firms, such as Ruckus Wireless, which has a massive 100,000-hotspot contract with Japan's KDDI, as all the equipment makers position themselves for LTE and the heterogeneous network (HetNet). But the big competitor for BelAir has been Cisco, which will now see Ericsson in one of its key markets in the carrier world.

Ericsson has announced a string of developments geared to HetNet, but has been less radical in its rethinking of the RAN than Alcatel-Lucent or Nokia Siemens. It has also been very cautious about the move to shrink 3G and 4G cells, clinging to its traditional macrostation economics and arguing that carriers must exploit other techniques, such as new antennas, before moving to small cell architectures.

It did launch its Network Integrated Wi-Fi solution last September and is "now taking the next step towards a truly integrated network", as it said in its statement, adding "the combination of Ericsson's mobile infrastructure technology leadership and BelAir Networks' leading position in carrier grade Wi-Fi equipment will accelerate the integration of Wi-Fi and cellular technologies. The acquisition of BelAir Networks will be part of Ericsson's HetNet strategy to improve the mobile broadband experience by managing the coexistence of mobile technologies and Wi-Fi."

BelAir CEO Bernard Herscovich said: "This transaction is a natural step in the continued development of BelAir Networks and we believe that Ericsson presents a strategic and cultural fit." The acquisition is expected to close during the first half of 2012.

Founded in 2002, BelAir started life in the then-fashionable metrozone sector and evolved its platform into offload. It recently added some LTE elements to its offering and has 120 employees.