Motorola Gains Euro Telco TV Presence with STB Platform Buy

Online staff -- Electronic News, 1/17/2006

To augment its existing portfolio of Internet protocol (IP) TV as well as to provide flexibility for operators deploying video services, Motorola Inc. said today it will acquire Linkoping, Sweden-based Kreatel Communications AB, a developer of IPTV-based digital set-tops, for an undisclosed amount.

Kreatel said its Linux-based solution extends into the application and middleware layers, allowing it to be used with a broad set of middleware solutions.

This set-top platform is believed to be a natural complement to Motorola’s end-to-end digital video solution, and particularly addresses the growing need for IPTV-based digital set-tops. Motorola has products throughout the cable, xDSL, and fiber-to-the-premise (FTTP) video chain -- including network infrastructure, video headend and transport, industry-leading MPEG-4 encoding, and connected home devices.

Combining Motorola and Kreatel’s strengths is believed to be attractive to green field video networks around the world by providing a solution as service providers evolve their video networks in the future, according to Dan Moloney, president of Motorola connected home solutions. “Motorola will have a flexible IPTV portfolio that addresses the real challenges faced by service providers worldwide as they build and evolve their networks,” he said in a statement.

Kreatel has been developing IPTV set-top software and hardware solutions to European telecom operators and ISPs for six years.

“Current Kreatel customers -- and others looking for a strong, flexible solution -- will now achieve the benefits of working with a global leader in digital video,” said Lars Bengtsson, CEO of Kreatel. “Motorola has an unmatched heritage of deploying and supporting video networks worldwide, and will enable more service providers to utilize the benefits of the Kreatel platform.”

The agreement is expected to be completed during Q1.

Kreatel’s management team and employees will remain based in Linkoping, Sweden, and be integrated into the Motorola Connected Home Solutions business, the companies concluded.