Ericsson takes over the business of Abentel, an Abengoa subsidiary specialized in fiber

Both companies sign an Activities Transfer Agreement (ATA), under which Abentel assets, projects and employees will be transferred. Nearly 500 employees who are experts in fiber services will join Ericsson, creating a global competence center based in Seville.

Ericsson and Abentel, a subsidiary of Abengoa, have signed an Activity Transfer Agreement (ATA), under which Abentel's assets, projects and employees will be transferred to Ericsson, thus improving its fiber service offering.

This agreement, sealed within the framework of the profound restructuring that the parent company Abengoa is undergoing, will strengthen Ericsson's position in telecommunications services, specifically in the deployment and maintenance of fiber networks, where it has important projects in different countries.

Nearly 500 professionals specialized in fiber network deployment and maintenance services will join Ericsson, bringing relevant skills to continue expansion in the growing field of fiber-related services.

The sum of the skills, tools and processes of both companies will allow Ericsson to create a global fiber services center in Seville, from where it can continue to strengthen its presence in this dynamic market.

As part of the agreement, Ericsson will take on some of the most important fiber optic deployment projects in Spain.

Demand for fiber optic transmission is growing rapidly to respond to growing bandwidth needs, stimulated by new applications, especially in video services. According to Ericsson's Mobility Report, 85% of data traffic generated by video applications on mobile devices is done over Wi-Fi, mainly indoors.

José Antonio López, CEO of Ericsson Spain, assures that "fiber is a key component for new generation IP networks. This agreement brings together the world leader in telecommunications services with one of the leading fiber service providers in Spain. The transfer of Abentel's competencies, together with Ericsson's service offering, will allow us to offer unmatched scalability for our clients' fiber projects."

Ericsson is the leading provider of global network deployment and maintenance services, with services in planning and design, construction and project management. Ericsson's fiber deployment methodology, as well as its integrated, end-to-end and real-time tools, give the company a unique ability to efficiently scale large and complex projects.

The transfer and integration process, including approval from the Spanish competition authority, is expected to be completed during the third quarter of this year.