Ericsson Bets on Future With Cradlepoint Acquisition

Swedish telecom gear maker Ericsson, on September 18, announced that it had acquired US-based vendor Cradlepoint for $1.1 billion. After the acquisition is completed, Cradlepoint will become a fully owned subsidiary of Ericsson and a part of its Business Area Technologies & New Businesses division. However, it will continue to operate under its existing brand.

Founded in 2006, Cradlepoint provides wireless WAN connectivity solutions. The company had revenues of approximately $135 million in 2019. Its business is divided into three broad markets:

  • Branch (i.e. fixed WAN market) — using LTE-TD, this was initially used as a back-up for fixed connections. However, now enterprises are relying on a primary connection.
  • Mobile — includes public safety network operators, temporary mobile networks, etc.
  • IoT — includes managing secure payments for large retail customers, connecting ATMs, secure ID verification and connecting surveillance cameras, including those equipped with edge compute.

In terms of business activities, there is very little overlap between the two companies. Cradlepoint essentially sells gateway routers located at the edge of the network, which connects a wireless (or fixed) local network to a wireless WAN, typically a cellular network. In contrast, Ericsson’s main business involves selling cellular equipment to mobile network operators (MNOs), rather than enterprises.

Cradlepoint is one of the leading players in the wireless WAN edge market in the US with around 23,000 customers, 1,500 channel partners and more than 1 million live SaaS subscriptions. Therefore, this acquisition will help advance Ericsson’s strategy of targeting the enterprise sector.

Although Cradlepoint’s revenues will not add much to Ericsson’s bottom line today, the wireless WAN edge market is a fast-growing market and, with investment from Ericsson, the acquisition could become very profitable.

As more and more spectrum becomes available, both in the US, Western Europe and elsewhere Ericsson will face a lot of competition from rivals such as Nokia which is also investing heavily in the sector. It recently announced that it had more than 180 private network customers.

On September 28, open RAN vendor Mavenir Networks announced that it had acquired UK-based ip.access, a small cells vendor, strengthening its position in the private networks market  particularly the CBRS market in the US. Counterpoint believes that the private networks market is one of the best opportunities for open RAN in the short term.

However, all these vendors risk incurring the wrath of their MNOs customer base if they are deemed to be competing directly with them. Quite how they plan to avoid this remains to be seen.

Related Posts

Gareth has been a technology analyst for over 20 years and has compiled research reports and market share/forecast studies on a range of topics, including wireless technologies, AI & computing, automotive, smartphone hardware, sensors and semiconductors, digital broadcasting and satellite communications.

Term of Use and Privacy Policy

Counterpoint Technology Market Research Limited


In order to access Counterpoint Technology Market Research Limited (Company or We hereafter) Web sites, you may be asked to complete a registration form. You are required to provide contact information which is used to enhance the user experience and determine whether you are a paid subscriber or not.
Personal Information When you register on we ask you for personal information. We use this information to provide you with the best advice and highest-quality service as well as with offers that we think are relevant to you. We may also contact you regarding a Web site problem or other customer service-related issues. We do not sell, share or rent personal information about you collected on Company Web sites.

How to unsubscribe and Termination

You may request to terminate your account or unsubscribe to any email subscriptions or mailing lists at any time. In accessing and using this Website, User agrees to comply with all applicable laws and agrees not to take any action that would compromise the security or viability of this Website. The Company may terminate User’s access to this Website at any time for any reason. The terms hereunder regarding Accuracy of Information and Third Party Rights shall survive termination.

Website Content and Copyright

This Website is the property of Counterpoint and is protected by international copyright law and conventions. We grant users the right to access and use the Website, so long as such use is for internal information purposes, and User does not alter, copy, disseminate, redistribute or republish any content or feature of this Website. User acknowledges that access to and use of this Website is subject to these TERMS OF USE and any expanded access or use must be approved in writing by the Company.
– Passwords are for user’s individual use
– Passwords may not be shared with others
– Users may not store documents in shared folders.
– Users may not redistribute documents to non-users unless otherwise stated in their contract terms.

Changes or Updates to the Website

The Company reserves the right to change, update or discontinue any aspect of this Website at any time without notice. Your continued use of the Website after any such change constitutes your agreement to these TERMS OF USE, as modified.
Accuracy of Information: While the information contained on this Website has been obtained from sources believed to be reliable, We disclaims all warranties as to the accuracy, completeness or adequacy of such information. User assumes sole responsibility for the use it makes of this Website to achieve his/her intended results.

Third Party Links: This Website may contain links to other third party websites, which are provided as additional resources for the convenience of Users. We do not endorse, sponsor or accept any responsibility for these third party websites, User agrees to direct any concerns relating to these third party websites to the relevant website administrator.

Cookies and Tracking

We may monitor how you use our Web sites. It is used solely for purposes of enabling us to provide you with a personalized Web site experience.
This data may also be used in the aggregate, to identify appropriate product offerings and subscription plans.
Cookies may be set in order to identify you and determine your access privileges. Cookies are simply identifiers. You have the ability to delete cookie files from your hard disk drive.