Ericsson of Sweden—one of the world’s leading suppliers of wireless handsets—moved to position itself in the market for IP television technology as it launched an unsolicited cash offer of U.S. $1.39 billion for Tandberg Television of Norway. The bid is said to be 10% higher than a rival offer submitted in January by the Arris Group, a producer of cable telephony, video and high-speed data equipment based in Suwanee, Georgia. A key strength for Tandberg is its expertise in the production of MPEG-4 compression technology that allows highresolution video images to be transported via lower-speed digital links. If Ericsson succeeds in its effort, the acquisition may enable the company to offer IPTV equipment to cable television, telephone and other firms that intend to offer television services via the Internet. Already, Ericsson has amassed an 11.7% stake in Tandberg and has agreements from shareholders, representing an additional 13% stake, that its offer will be accepted. Predicting that, “a large part of the expected traffic growth in the world’s mobile and fixed networks is expected to be generated by TV services,” Ericsson said a union with Tandberg would result in “a strong combination with a unique ability to offer complete IPTV solutions.”