Ericsson reassures channel

The telecoms giant plans to integrate the Marconi products into its portfolio

Ericsson has moved to reassure its channel partners after confusion descended in the wake of its buyout of troubled Marconi’s network equipment business.

Marconi will be renamed Telent and become Ericsson’s preferred services provider, a move that could effect any business implemented through the channel.

However, Ericsson has confirmed that Telent will only service the Marconi range, while its own channel will continue to operate in the same manner.

Jonathan Smith, vice-president for enterprises for UK and Ireland at Ericsson, said: “There has been some confusion around Marconi becoming the preferred services provider, but it will only cover the products coming in [from the acquisition].

“The services provider relationships are still the preferred providers for our enterprise range.

“It will be business as usual for them, and the channel can expect more products,” he said.

Smith added that any Marconi products suitable for the enterprise portfolio will be implemented through the channel.

Maurice Lee, managing director of Ericsson preferred supplier VAR Premises Networks, said he has been reassured by Ericsson.

“Ericsson has only four services providers in the UK and it is not going to damage this. The move will raise the UK profile and will be good for the channel,” said Lee.

Paul Renucci, managing director at Ericsson VAR Damovo, said: “It seems like a good deal for both parties. The announcement about the preferred services provider was confusing at first, but it will concern only the Marconi products.”

Renucci said that Telent will be aimed at the more specialist high-end market and will not affect trade given to the channel.

Keith Humphreys, managing consultant at analyst EuroLAN, added: “Neither company has overly engaged with the channel.

“If anything it will give Marconi more of a channel as Ericsson mainly works through system integrators.”

The acquisition will cost Ericsson £1.2bn, but it hopes to add £1bn in additional sales and expects the move will produce a positive effect on sales figures by 2007.