Last week newspapers in China reported that Ericsson is mulling a decision to acquire UTStarcom or Harbor Networks following comments from Ericsson that it is in talks to acquire a Chinese company. Ericsson wouldn't disclose company names. Analysts agree the main reason Ericsson would acquire UTStarcom is for its IPTV platform, mVision. The IPTV offering has surprised many in the industry by winning contract bids with China Telecom and Softbank BB over Alcatel. Analysts, however, say UTStarcom is not an ideal purchase for Ericsson because of an ongoing SEC investigation rumored to involve the company's revenue recognition practices. The company's business culture is also markedly different from Ericsson's since it's used to unpredictable revenues and vendor financing arrangements. Ericsson left the handset business because of unpredictable sales. Neither company has confirmed the rumors.
For more on the rumored Ericsson acquisition of UTStarcom:
- take a look at this Light Reading article