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Trump Gives Motivation for Cisco to Buy Ericsson
February 28, 2018 | By Osvaldo Coelho @ poa! internet
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We are pleased to share with you all an interesting article contributed by Osvaldo Coelho who is senior ICT Planning & Implementation consultant.

 
 

Osvaldo Coelho

Business Development at Athonet

 

 

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In Trump's 5G plan there is need for signing up allies to help deploy 5G to developing nations in order to "inoculate" them against China, according to alleged leaked government documents published by Axios.

 

To have leverage, the United States need to have an American 5G infrastructure vendor.

 

The US, nor Canada, have wireless infrastructure companies after Lucent and Nortel were sold. Although Nokia and Ericsson are companies from US allied countries, they have big presence in China. By the way: Did Iran missed the 2 and 3G?

 

These mobile infrastructure vendors will sell based on their business objectives -and to get market share- the 5G vendors will be very aggressive. They will need to build networks abiding to laws and regulations of the customers' countries. These rules may not be what the US agrees with, but if they do not abide these potential customer will buy from ZTE and Huawei.

 

The United States need its own home country 5G infrastructure company and combine Security with 5G. Security presents a massive opportunity for Cisco. At about $2.5 billion in revenue, Cisco is the largest enterprise-focused security vendor.

 

Cisco buying Ericsson has been on the cards for a while. Once Cisco buys it, it will abide to the laws of the US: Chuck Robbins will tell that to the board and the board would love that idea: US, Canada, Australia, Japan South Korea all in the bag. All those Managed Service contracts that are allowing Ericsson to perform 5G trials all over the world? All go to Cisco.

 

Good potential

 

What Is Ericsson’s View on 5G Subscriptions? According to a Reuters report, telecom gear maker Ericsson (ERIC) predicts that ~1.0 billion subscribers could have access to 5G mobile networks by 2023. Ericsson expects this emerging 5G technology to nearly double between 2022 and 2023, creating a global breakthrough in that year.

 

Will Cisco leave Africa on the hands of the Chinese suppliers?

 

Compare the AFRICOM and the Chinese infrastructure footprints 

 


These overlaps point to a need of Shared Backhauls in Africa!

 

How about Mexico? LATAM? The goal is a network that reflects the US goals and principles. Cisco after buying Ericsson aggressively will pursue markets directed by national security and at the same time connecting the unconnected. It is all part of the same deal.

 

Cisco CEO Chuck Robbins in Davos this month: "As the world moves towards embracing digital economy, top technology companies must keep the competition aside and work with all the stakeholders to solve some of the real issues people are suffering from"

 

According to the PowerPoint presentation and accompanying memo titled "Secure 5G: The Eisenhower National Highway System for the Information Age", which Axios said were produced by a "senior national security council official", the United States must build a centralised 5G network over the next three years due to the rising dominance of China.

 

Which brings us to TIP Telecom Infrastructure Project: TIP is focused on all areas of the network – from access to backhaul, to core and management – so it’s quite natural for us to also focus on edge computing.TIP is on pole position for cooperate with Cisco's Ericsson acquisition. What exactly is edge computing? According to research firm IDC, Edge computing is a “mesh network of micro data centers that process or store critical data locally and push all received data to a central data center or cloud storage repository, in a footprint of less than 100 square feet,”

 

If Ericsson stays as is and goes sell 5G we know already what is going to happen...

 

 

 

 

I managed the MTN Irancell mobile deployment from the border of Iraq to the Afghan border. The supplier? Ericsson

 
 
     
Junaid @ Tejas Networks via LinkedIn 2018-03-08 13:50:33

Trump is missing the point that the market is cost driven which led to the rise of huawei and likes. Cisco taking over Ericsson will not solve the problem unless the process level, china and outside China.

George @ GrayConsulting via LinkedIn 2018-03-09 07:10:41

I’m not sure I understand all of the synergies here but Cisco acquiring a 5G provider seems like a great idea!

David @ Hubbell Power Systems via Linked 2018-03-11 15:15:46

I would never underestimate the business acumen of President Trump. His motivation is undoubtedly not driven by specific companies and Ericsson / Cisco just happen to be companies that might be affected by his call for escalation of 5G on the world stage.

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