Ericsson Teams With Cisco as Networks Meld Amid Data Surge

Stockholm-based Ericsson, the biggest maker of wireless networks, and San Jose, California-based Cisco, the largest maker of Internet-network gear such as routers and switches, said Monday they will cooperate in development and delivery of systems to telecommunications carriers and other customers. The companies predict added revenue of $1 billion or more each by the end of 2018 from the partnership.

The pact allows the two companies to sell more complete network systems to carriers seeking to cope with the flood of data resulting from the increasing popularity of smartphones, tablets, video streaming and cloud services. The partnership also helps Ericsson respond to Nokia Oyj‘s expansion in that field. Nokia is close to completing its $17.6 billion purchase of Alcatel-Lucent SA to gain scale in research and development and fixed-lined Internet networks.