Ericsson has announced a two-year, $6 million contract with DEK Technologies to design hardware and software for mobile use as well as for wireline core networks.
An additional $10 million worth of work is currently under negotiation. As part of the agreement, Erricsson will support DEK with office space and access to laboratory equipment.
DEK Technologies has a staff in Australia of 25 now, primarily ex-Ericsson developers and according to CEO of DEK Technologies, Adrian Jensen, will develop hardware and software for the Ericsson infrastructure before making the service open to all competitors.
Jensen said the third-party research and development model is unique in the sense that they can target services to other companies apart from Ericsson. "It is a much smarter research and development model for multinational companies and also for technology companies in Australia," Jensen said.
"Design teams were previously concentrated in-house within multinationals and if they had a problem with a local design team they run the risk of being cut - we are going to build our business to a point where we can offer services to other companies.
"We [DEK Technologies] have 25 staff now and are looking at recruiting another 16 people before June 2005, primarily for service to Ericsson."
DEK Technologies will be based in the Ericsson campus in Melbourne.