Telecom
Ericsson Completes Acquisition of Vonage Holdings
Ericsson has completed its acquisition of Vonage Holdings Corp. (Vonage), supporting Ericsson’s strategy to leverage technology leadership to grow its mobile network business and expand into enterprise.
The acquisition provides Ericsson with access to powerful building blocks to offer a full suite of communications solutions including, Communications Platform as a Service (CPaaS), UCaaS and CCaaS.
By leveraging the Vonage CPaaS offering, Ericsson aims to transform the way advanced 5G network capabilities are exposed, consumed and paid for. This will provide the global developer community, including Vonage’s more than one million registered developers, with easy access to 4G and 5G network capabilities via open Application Program Interfaces (APIs).
For communications service providers (CSPs), global network APIs – such as location and quality of service APIs – provide new opportunities to expand their profit pools to monetize 5G network capabilities.
For Ericsson, global APIs provide a new material growth opportunity. The existing market for communications APIs – such as video, voice and SMS – is currently growing at 30 percent annually and projected to reach USD 22 billion by 2025.
Accessing network capabilities in an open, intuitive, and programmable ways via global APIs will enable developer communities to create applications for any device that benefits from connection to the 5G network. Developers can utilize network characteristics such as user authentication, bandwidth, responsiveness, energy efficiency, security, identification and reliability – or network information such as device information or predictive coverage.
These new and innovative consumer and enterprise applications will further drive the rollout of 5G and network Capex.
To accelerate growth in Vonage’s UCaaS and CCaaS solutions, Ericsson intends to increase R&D investments and offer these solutions to CSPs, enabling Ericsson’s existing customers to sell through their own brands, and accelerate growth.
Ericsson will also complement existing communications offerings to small and medium sized companies with the Vonage UCaaS and CCaaS solutions which will form a strong part of Ericsson’s offerings to both CSPs and enterprises.
Börje Ekholm, President and CEO, says: “We are excited to welcome Vonage as part of Ericsson. With Vonage’s suite of communications solutions – UCaaS, CCaaS and Communications APIs – Ericsson will further expand its offerings into the enterprise space.
In the future, network capabilities will be consumed and paid for through open network APIs, creating the opportunity for unparalleled innovation. We have already launched the first network API, Dynamic End-user Boost, based on existing 4G infrastructure.
With Vonage, we will now develop and commercialize these new APIs. We are already seeing great progress with frontrunner CSPs, and we aim to launch the first 5G network APIs in the coming year.
“We will continue to create new, enhanced applications and services for enterprises, while driving continued innovation on Vonage’s UCaaS and CCaaS applications, helping businesses create new digital experiences for better communications, connections and engagement.
“By linking the network world with the global developer community, we’re creating a paradigm shift that will put the network at the center, allowing the CSPs a new monetization opportunity supporting increasing investments in high-performance networks.”
“4G was the platform that allowed the consumer to digitalize. It opened new business models and created some of the fastest-growing companies in history. With 5G, we have an innovation platform, unlike anything we’ve seen before, offering almost limitless opportunities to develop super-fast, highly reliable, low-latency and mission-critical services. With 5G, we will see accelerated digitalization of enterprises with Vonage’s UCaaS and CCaaS suite being a solid growth platform.”
Vonage was recently named the leader in the Omdia Universe: Selecting a CPaaS Platform 2022 report, ranked in top positions on customer experience and solutions capability. It currently serves over 120,000 business customers, has a global community of more than one million registered developers and a highly scaled platform with a combined 25 billion messages and minutes per year.
This, combined with Ericsson’s deep network expertise, industry-leading portfolio and global scale, is expected to enable Ericsson to seed and accelerate the market for global network APIs. CSPs will benefit from global reach, beyond national or regional setups.
The acquisition will also further strengthen Ericsson’s presence and long-term commitment to the United States, where it has a 120-year history of conducting business.
Rory Read, Vonage CEO, says: “Vonage was born out of innovation and is today a global leader in business cloud communications.
“This partnership will strengthen our offerings to businesses across the globe by leveraging Ericsson’s leadership in 5G, global market presence and strong R&D capabilities. With the demand for UCaaS, CCaaS and Communications APIs growing rapidly, the combined expertise, talent and innovation is good news for our customers and partners.”
He adds “The way we work, shop, learn, see a doctor, exercise and entertain is fundamentally changing. Together, Ericsson and Vonage will be at the heart of the next wave of the digital transformation, providing enterprises, CSPs and end users with innovative applications and services that will change how business gets done.
“We will drive deeper connections and engagement among employees and across customer touchpoints, making for exceptional experiences.”
Additional information about the transaction
The transaction is expected to be accretive to Ericsson’s EPS (excluding non-cash amortization impacts) and free cash flow before Mergers & Acquisitions (M&As) from 2024 onwards.
Vonage will become a separate business area within the Ericsson Group – called Business Area Global Communications Platform (BGCP). Rory Read, current CEO of Vonage, is appointed Senior Vice President and Head of Business Area Global Communications Platform and a member of Ericsson’s Executive Team.
With the completion of the transaction, Vonage will continue to operate under its existing name and brand being part of the Ericsson Group.
As of the closing date, Vonage’s financial performance will be reported in Segment Enterprise along with Business Area Enterprise Wireless Solutions and Business Area Technologies & New Businesses as of the third quarter 2022.
Vonage common stock has ceased trading and will no longer be listed on the Nasdaq Global Select Market.
The acquisition was funded with cash on hand. The USD amount has been hedged with both external transactions and internal netting of Ericsson’s ongoing USD inflows.
The transaction is expected to deliver near-term revenue synergy opportunities, including CSPs selling through their own brands and cross-selling of the combined product portfolio estimated to contribute USD 0.4 billion by 2025. Ericsson also expects to achieve some cost efficiencies now that the deal is complete.
Vonage has a strong track record of growth and margin evolution. Sales were USD 1.4 billion in the 12-month period to 31 March 2022 and, over the same period, the company delivered an adjusted EBITDA margin of 13 percent and free cash flow of USD 93 million.
Ericsson remains committed to the previously communicated long-term financial targets of an EBITA margin of 15-18 percent and Free Cash Flow before M&A of 9-12 percent of sales; as well as the 2022 EBIT margin target of 12-14 percent for the Ericsson Group excluding Vonage.
Vonage is currently engaged with the U.S. Federal Trade Commission to resolve an investigation into historic consumer practices which was initiated in 2020.
Viral rumors about a “Tesla Pi Phone” a new phone, being developed by Elon Musk, CEO and largest shareholder of Tesla and SpaceX, are entirely fake.
AI Generated Tesla Pi Phone and Elon Musk
Instead, the tech giant said on Monday it has filed an application with the US Federal Communications Commission for permission to deploy the constellation by 2028.
It said the system would provide voice, messaging, data and emergency services.
A quick fact-check revealed that Tesla Inc. has never manufactured, developed, or released a smartphone.
Videos and articles claiming a release (often priced between $150 and $800 with solar charging or satellite-only connections) rely on AI-generated concept art and recycled internet hoaxes dating back to 2021.
Musk has only mentioned a phone in hypothetical remarks, stating Tesla would build one only if major app stores completely blocked or censored essential apps like X (formerly Twitter).
On Monday however, his company said that “Amazon looks forward to delivering on the promise of D2D [direct-to-device] connectivity, including to the millions of people living, travelling and working in places beyond the reach of existing networks today,”
The filing is the first step from Amazon into satellite mobile connections, which has until now been dominated by SpaceX’s Starlink service.
Musk’s group has signed partnerships with existing operators such as T-Mobile US and the UK’s Virgin Media O2 to provide phone services for customers where their conventional networks do not reach.
Starlink operates across more than 150 countries, offering high-speed internet connections through its constellation of satellites.
Association of Licensed Telecommunications Operators of Nigeria (ALTON) has attributed rising mobile data consumption to increased use of smartphone applications, cloud services and emerging digital technologies.
Mr Gbenga Adebayo, chairman, ALTON
Mr Gbenga Adebayo, chairman, ALTON, disclosed this on Tuesday at the Lagos Chamber of Commerce and Industry (LCCI) conference in Lagos.
Adebayo said smartphones had transformed access to digital services, with many applications consuming data continuously, even when users were not actively browsing the internet.
He explained that automatic software updates, cloud backups, application synchronisation, video streaming, social media autoplay and location services significantly increased data consumption.
According to him, internet usage had changed considerably from a decade ago when consumers mainly relied on direct browsing with fewer digital applications running simultaneously.
He said growing adoption of artificial intelligence, cloud computing and other emerging technologies would further increase demand for reliable connectivity and greater network capacity.
“The evolution of smartphones has fundamentally changed how consumers access digital services, with many applications now consuming data continuously,” Adebayo said.
He stressed that digital literacy had become increasingly important because consumers needed to understand how their devices and applications consumed mobile data.
He advised subscribers to monitor application activity, adjust device settings and use built-in data management tools to better control their data consumption.
Adebayo said greater understanding of digital tools would help dispel misconceptions about data usage and strengthen public confidence in Nigeria’s telecommunications industry.
Responding to allegations that operators deliberately depleted customers’ data, Adebayo dismissed the claims, insisting telecommunications companies had no commercial incentive to engage in such practices.
He said every megabyte consumed on telecom networks was recorded through internationally standardised billing systems supplied by recognised technology vendors and regulated by authorities.
“Such a practice would be unlawful, unethical, commercially self-defeating and subject to stringent regulatory oversight by the Nigerian Communications Commission,” he said.
Adebayo explained that operators’ billing systems were designed to guarantee accuracy, transparency and verification, while genuine consumer complaints were investigated through established protection channels.
He added that the Nigerian Communications Commission’s complaint resolution mechanisms and technical audits provided consumers with credible avenues for seeking redress over billing concerns.
According to him, trust remains essential to expanding Nigeria’s digital economy because telecommunications infrastructure supported banking, healthcare, education, commerce and government services.
He said the telecommunications sector had evolved beyond basic communication services into a critical driver of productivity, investment, innovation and national economic growth.
Adebayo noted that emerging technologies, including artificial intelligence, financial technology, smart manufacturing and digital agriculture, depended on resilient telecommunications infrastructure.
He said Nigeria could only maximise these opportunities through sustained collaboration among government, regulators, telecommunications operators and consumers.
Adebayo reaffirmed operators’ commitment to improving customer experience, strengthening network resilience and promoting transparency in telecommunications service delivery.
He urged stakeholders to encourage evidence-based discussions on digital services, stressing that public trust remained indispensable for the sustained growth of Nigeria’s digital economy.
(NAN)
Telecom
Galaxy Backbone Soft Launches Government Service Portal to Simplify Access to Public Services
Galaxy Backbone (GBB), in partnership with the Federal Ministry of Communications, Innovation & Digital Economy (FMCIDE) and the Korea International Cooperation Agency (KOICA), officially conducted the soft launch of the Government Service Portal (GSP), a groundbreaking digital platform designed to transform how citizens, businesses and government institutions interact.
The event, held at the Galaxy Backbone National Shared Services Centre (NSSC) Headquarters in Abuja, brought together senior government officials, development partners, technology stakeholders and members of the media to unveil services.gov.ng—Nigeria’s new one-stop digital gateway for accessing government services.
The Government Service Portal is designed to provide a single, trusted platform through which Nigerians can easily discover, access and interact with digital services offered by Ministries, Departments and Agencies (MDAs). By consolidating government services into one unified portal, the initiative aims to improve accessibility, enhance service delivery and create a more seamless citizen experience.
Speaking at the event, the Managing Director/Chief Executive Officer of Galaxy Backbone. Professor Ibrahim Adeyanju, stated that the launch represents another significant milestone in Nigeria’s digital transformation journey and reflects the Federal Government’s commitment to building a more connected, efficient, transparent and citizen-centred public service.
He emphasized that the Portal is more than a website; it is the foundation of a unified digital gateway that places the needs of citizens and businesses at the centre of government service delivery.
He further noted that while the event marks the beginning of the Portal’s journey, the soft launch provides an opportunity to onboard pioneer MDAs, gather user feedback, strengthen system integrations and continuously improve the platform ahead of a wider national rollout.
Representing key stakeholder institutions at the launch were the Deputy Director of KOICA Nigeria, Mr. Ki Yun Baik; the Permanent Secretary of the Federal Ministry of Communications, Innovation & Digital Economy, represented by Mr. Joseph Bareiye, Director of e-Government; the Permanent Secretary, State House, represented by Mr. Oguntuyi Olusegun, Head of ICT; and the Executive Director, Digital Exploration and Technical Services, Galaxy Backbone, Olumbe Akinkugbe.
The Government Service Portal aligns with the Renewed Hope Agenda of President Bola Ahmed Tinubu, GCFR, and supports Nigeria’s broader Digital Public Infrastructure (DPI) agenda by creating a citizen-facing gateway that complements existing investments in digital identity, secure infrastructure, cloud services, cybersecurity and digital government platforms. It can be accessed using the link: services.gov.ng . The initiative is expected to strengthen public service delivery, increase transparency, improve operational efficiency and foster greater trust between government and citizens.
Galaxy Backbone reaffirmed its commitment to supporting all Ministries, Departments and Agencies in integrating their digital services into the Portal, noting that collaboration across government will be critical to building an inclusive, interoperable and efficient digital ecosystem that benefits every Nigerian.
The Government Service Portal is expected to evolve into Nigeria’s central digital gateway for public services, making government services simpler, faster and more accessible for citizens and businesses alike.
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