Ericsson to buy Microsoft's TV software unit

Ericsson, the Swedish maker of telecommunications equipment, has agreed to buy Microsoft's Mediaroom business, which makes the software that powers AT&T's U-Verse TV service.

Neither company said how much Ericsson will pay for the acquisition.

Mediaroom gives phone companies a way to provide cable-like TV services over phone lines. It's used in 22 million set-top boxes in 11 million households, Microsoft said.

U-Verse accounts for about 4.5 million of those homes. It's also used by Deutsche Telekom of Germany and by Telus Communications of Canada.

Microsoft, which is based in Redmond, Washington, said it's focusing its resources on making its Xbox service a delivery vehicle for entertainment to game consoles, phones, PCs and tablets.

Ericsson said the Mediaroom business complements its portfolio of TV products. The business employs more than 400 people and is based in Mountain View, California.

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Micromax wants deal with Ericsson

Micromax has promised to try to work out a patent deal with Ericsson after the Swedish equipment maker sued the leading domestic handset maker for alleged patent infringement.

The company issued the statement after a court on Monday gave an interim ruling in favour of Ericsson, which had filed an $18-million suit against Micromax, accusing it of using its patented technology. The suit marks the first high-profile Indian patent litigation case amid a number worldwide, notably between Apple and Samsung.


The court told Micromax to work out what is known as a Fair, Reasonable and Non-Discriminatory, or FRAND, licence agreement with Ericsson.


Handset makers often rely on technologies owned by other firms to make their mobile phones and conclude a FRAND licence agreement when doing so. 

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