Ericsson has reached an agreement with LLC and Warburg Pincus to acquire 100 percent of the shares of Telcordia for $1.15 billion.

Hans Vestberg, president and CEO, Ericsson, says, “The importance of operations and business support systems will continue to grow, as more and more devices are connected, services become mobile and new business models for mobile broadband are introduced. In this context, Telcordia brings a large business in North America and other markets, as well as a good multi vendor product portfolio.”

One of the main challenges for operators is how to handle the growth in mobile and fixed broadband traffic, as well as the new types of connected devices, services and applications. At the same time, increasing the efficiency in business and operations is also vital.

OSS and BSS are critical areas to handle this challenge and to simplify the processes that support the business. These drive the customer?s experience and serve as the engine to monetising traffic, offerings and products that operators sell. All in all, these systems are crucial to create the experience users expect in a cost efficient manner.

Mark Greenquist, president and CEO, Telcordia, says, “The combination of Ericsson’s global leadership position and Telcordia’s long-standing expertise in solving the most complex communications challenges will benefit customers through new services and expanded capabilities.”

The OSS/BSS is a growing market driven by the demand for business efficiency, innovation and high quality user experience. In 2010, the market for software and systems integration was valued at about $35 billion and is expected to show a compound annual growth rate between 6-8 percent between 2010 and 2013. In addition, there is a market for outsourced and hosted managed services, growing in the same range.