Ericsson and Cisco to Overhaul Network of Vodafone Hutchison Australia

By Matthias Verbergt

Ericsson AB and Cisco Systems Inc. said Monday that they would overhaul the telecommunications network of Vodafone Hutchison Australia, which they described as their largest deal since the two networking companies announced a partnership.

The five-year deal, whose valuation wasn't disclosed, is a sign that Ericsson's and Cisco's alliance is starting to bear fruit more than a year after its creation, analysts say.

Ericsson and Cisco will upgrade the Australian service provider's infrastructure by harmonizing hardware and software components and integrating mobile and fixed networking equipment to prepare it for next-generation applications such as virtual reality, autonomous driving and ultra-high-definition video.

Ericsson, a specialist in mobile equipment, said in November 2015 that it would forge a partnership with Cisco, which dominates the market for fixed internet gear such as routers and switches, to counter mounting competition from Nordic rival Nokia Corp. and China's Huawei Technologies Co.

Ericsson said its partnership with Cisco has closed more than 60 deals. Earlier this month, the two companies extended their partnership to include Wi-Fi solutions.

Write to Matthias Verbergt at Matthias.Verbergt@wsj.com

(END) Dow Jones Newswires

January 16, 2017 23:15 ET (04:15 GMT)

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