Mergers and acquisitions constantly reshape various sectors of the industry as well as the show floor at IBC. Ericsson’s acquisition of Tandberg Television and SES’s takeover of ND SatCom are the most notable booth transitions at the show, but where the companies really want to make their respective marks is by changing the fundamental nature of the business in their sectors.
      Both deals are far enough along now that the companies no longer can claim they are still integrating or working out the details of their operations. At this point, executives want to see new business coming in, and customers want to see if the combinations can live up to their operational promises.
      Officials from both companies claim that the combinations have created a new type of operator in their market segment. ND SatCom, the company that was acquired in its deal, now bills itself as a supplier of satellite-based broadband VSAT, broadcast, government and defense communication network, and ground station solutions that can compete and win bigger deals thanks to the backing of SES. Ericsson, the acquirer in its transaction and known more for its strong position in the global wireless industry, now says it can provide delivery of video services across different platforms: digital TV, HDTV, video on demand and IPTV.
      In both cases, company executives said the breadth of their offerings cannot be matched by anyone else in their respective markets. It is a bold claim − difficult to discount at this stage but a claim that will be scrutinized by competitors and customers. If Ericsson and ND SatCom have created new powerhouses, they will reap the benefits and force their competitors to respond. If the two companies cannot back up their marketing, then customers will respond by looking elsewhere.
      It’s too early to make judgment on the success or failure of the respective moves, as the first deals and customers really are just being announced. But everyone will be watching closely.