Swedish telecommunications equipment maker Ericsson AB said on Tuesday it will acquire Microsoft Corp’s Internet protocol television unit Mediaroom.
Analysts said the move will help Ericsson further explore the Chinese market.
“The acquisition will help us further integrate technology resources and enrich our production line,” said Gao Junliang, vice-president of Ericsson China and director of the company’s broadcasting and new media department.
Gao said acquiring Mediaroom was a part of Ericsson’s overall strategy in the broadcasting sector, and the company has high expectations for the sector.
“We hope the China market will register a high growth rate in the future,” he added.
The acquisition is due to be completed in the second half of this year.
After the acquisition, Ericsson will become the top player in the IPTV sector, with a global market share of more than 25 percent, the company said.
Currently, Mediaroom powers 22 million set-top boxes in 11 million subscriber households worldwide, said a separate statement from Microsoft.
Overseas IPTV providers have a limited presence in emerging markets, including China.
“Ericsson’s long-time relationship with Chinese telecom carriers and TV broadcasters will help the company expand in the nation,” said Zhang Fan, a researcher at Beijing-based Internet consultancy Analysys International.