Oracle-Tekelec may spark consolidation wave

Michael Carroll
27 Mar 2013
00:00
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Daily News

Oracle’s acquisition of telecom equipment vendor Tekelec is likely to spark a brace of takeovers by its financially secure rivals, a leading Ovum analyst says.

The software vendor revealed on Monday it is buying Tekelec, which supplies network signaling, policy control and subscriber data management services for communications providers. The deal comes a few weeks after Oracle agreed to a $1.7 billion acquisition of session border control technology provider Acme Packet, and drives the firm deeper into the heard of telecom networks according to Dana Cooperson, principal analyst at Ovum.

“Tekelec will extend Oracle Communication’s network control capabilities,” Cooperson notes, adding. “Oracle has in the past partnered to provide these capabilities, but by bringing them in-house it will have more opportunity to shape the roadmap and combine the capabilities in a more tightly-coupled solution.”

Cooperson predicts Oracle rivals including Alcatel-Lucent, Huawei, Ericsson, HP, and SAP will now consider similar acquisitions. “Key areas for strategic shoring up include customer experience management, applications enablement, big data analytics, subscriber data management, and network and service control intelligence.”

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