Ericsson to buy BelAir Networks

Swedish telecoms gear maker Ericsson is to buy privately held WiFi technology company BelAir Networks to boost its mobile broadband offering. Demand for wireless connectivity has boomed in the last couple of years with the proliferation of mobile devices, such as smartphones and tablets. BelAir, which produces indoor and outdoor WiFi systems for telecoms operators that allow people to surf the Internet without a physical coupling to a network, has 120 staff. “ With this acquisition Ericsson will be able to add the WiFi functionality to its micro base stations at a low incremental cost, making its emerging small-cell cellular infrastructure offerings more appealing,” said Pal Zarandy, a partner at telecom consultancy Rewheel. Telecom operators see WiFi hotspots as crucial to helping them cope with wireless data traffic, which is expected to grow 26-fold in the next five years, according to Cisco, as usage of video on mobile devices surges. Other telecom equipment vendors would likely follow Ericsson with acquisitions in the wireless hotspot sector, said analysts and industry executives.