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ECI Telecom
ECI Telecom
ECI Telecom
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ECI Telecom Ltd is an Israel-based manufacturer of telecommunications equipment that provides packet optical transport products, software-defined networking applications, cybersecurity and professional services.

Key Information

History

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The Electronics Corporation of Israel (ECI) was founded in 1961. It specialized in telephone transmission products that manipulated the signals carried on telephone lines. The Electronics Corporation of Israel became ECI Telecom in 1981, and had its first trading on NASDAQ in 1982. Since that time, ECI has undergone a number of mergers and acquisitions. An acquisition in 2007 by the Swarth Group and the Ashmore Group, private equity firms, making ECI a private company once again.[1]

In 2005, the firm purchased Laurel Networks, a company that specialized in routers for telecommunications carriers, for $88M, and formally renamed it as the Data Networking Division within ECI.[2][3][4]

In November 2019, Ribbon Communications agreed to acquire ECI Telecom, through a merger, for $486 million.[5]

ECI serves carriers and service providers in various sectors: cable/multiple system operators, wireless/cellular service providers, utilities, carrier of carriers, data centers, government and defense entities. It markets multi-play services, business services, voice services, cellular backhaul, utility telco and network security.

Facebook in its phase five has given transport core network deployment to Ciena and worldwide metro packet network deployment to ECI telecom which will be completed by 2022.[citation needed]

ECI has over 3,000 employees with offices in over 20 countries and development centers in India, China, and Israel.

Former holdings and spin-offs

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See also

[edit]

References

[edit]
[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

ECI Telecom

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from Grokipedia
ECI Telecom Ltd. was an Israeli specializing in and networking solutions. Founded in 1961 as the Electronics Corporation of Israel and headquartered in , the company designed, manufactured, and supported end-to-end digital telecommunications systems, including packet optical transport products, (SDN) platforms, and elastic network solutions for communications service providers (CSPs), operators, and data centers worldwide. With approximately 1,700 employees prior to its merger, ECI Telecom served customers in over 100 countries, focusing on high-capacity, secure optical and IP networking to enable multi-play services, cellular backhaul, business connectivity, and network security. Originally established with a focus on defense electronics, ECI Telecom pivoted to civilian telecommunications in the 1970s, pioneering technologies such as Time Assignment Speech Interpolation (TASI) for voice efficiency and digital circuit multiplication equipment (DCME) in the 1980s, which captured a dominant in bandwidth optimization for satellite and terrestrial links. By the 1990s, the company had expanded into access multiplexers, systems, and wide-area network solutions, achieving significant growth through acquisitions like Telematics International Inc. in 1993 and listing on . ECI's innovations emphasized scalable, cost-effective infrastructure for converging voice, video, and data networks, positioning it as a key supplier to tier-one carriers and utilities. In March 2020, ECI Telecom completed a transformative merger with Ribbon Communications Inc., a U.S.-based provider of real-time communications software and IP optical networking, in a transaction valued at approximately $460 million (consisting of $324 million in cash and 32.5 million shares of stock); this integration combined ECI's optical transport and switching platforms with Ribbon's session border controllers and media gateways, enhancing global offerings for secure, cloud-to-edge connectivity. Post-merger, ECI's technologies continue under the brand, supporting deployments in over 140 countries and serving hundreds of millions of users through partnerships with service providers and system integrators. In October 2025, disclosed a cybersecurity breach by a nation-state that accessed its network from December 2024 to October 2025, affecting a limited number of customer files with no material impact. The combined entity, with more than 3,000 employees and annual revenues exceeding $800 million for the year 2024, underscores ECI's legacy in advancing resilient, high-performance telecom networks amid the shift to , , and .

History

Founding and early years

ECI Telecom traces its origins to 1961, when it was established as the Electronics Corporation of Israel Ltd. by the government with the primary objective of manufacturing electronic equipment for military applications. During 's early years as a nation, the company concentrated on developing defense electronics, including radar systems, secure communication technologies such as voice-scrambling devices for the , and other specialized equipment essential for amid regional conflicts. This military-oriented focus positioned ECI as a key contributor to 's burgeoning defense industry, leveraging domestic engineering talent to address immediate strategic needs. In the late and into the , under new management, ECI began transitioning from its exclusive military roots toward civilian applications, recognizing opportunities in the growing global demand for reliable network infrastructure. The company initiated development of transmission equipment for telephone networks, emphasizing long-distance multiplexing technologies such as Time Assignment Speech Interpolation (TASI) to enhance voice signal efficiency over analog lines. This pivot allowed ECI to adapt its expertise in and to commercial markets, laying the groundwork for broader solutions. A pivotal early milestone occurred in 1970, when ECI established its first research and development center in , fostering innovation in telecom technologies, and commenced initial exports of its products to European markets. These steps marked the company's entry into international commerce, building on its military-grade reliability to supply transmission systems for expanding telephone infrastructures abroad.

Expansion and public listing

In 1982, Electronics Corporation of Israel Ltd. completed its on the , marking a pivotal step toward becoming a publicly traded and enabling it to raise capital for broader global expansion beyond its initial military-focused operations. This listing provided the financial resources necessary to invest in commercial and scale production capabilities during a period of rapid technological advancement in the sector. By 1985, the formally rebranded as ECI Telecom Ltd., reflecting its strategic shift toward as its core business. During the , ECI Telecom focused on product diversification to capitalize on the growing demand for efficient transmission technologies, developing key offerings such as digital circuit multiplication equipment (DCME) and access multiplexers like the DIGILOOP system, which optimized bandwidth for voice and over and terrestrial links. These innovations positioned ECI as a competitive player in the international market, particularly for long-distance communications. By the early , the company expanded into fiber-optic systems, launching Synchronous Digital Hierarchy (SDH)/ (SONET) products like the platform in 1994, which supported high-capacity optical transport for backbone networks. This product lineup addressed the needs of telecom operators transitioning to digital and optical infrastructures amid global and network upgrades. ECI Telecom's revenue experienced substantial growth throughout the and , fueled by increasing sales to major telecom operators in and , where demand for advanced transmission equipment surged due to infrastructure liberalization and . From 1985 to 1990, annual sales grew at an average rate exceeding 30 percent, reaching $74.5 million by the end of the decade. This momentum continued into the , with revenues surpassing $451 million by 1995—a more than 500 percent increase over five years—driven by strong adoption of its DCME and SDH products in international markets. By , annual revenues had climbed to approximately $1.3 billion, underscoring ECI's transformation into a leading global supplier. To support this expansion, ECI Telecom established international subsidiaries and pursued joint ventures in key emerging markets during the mid-1990s. In , the company entered the market in 1994, setting up operations including ECI Telecom China to facilitate sales and local manufacturing of transmission equipment for state-owned carriers. Similarly, in , ECI announced plans in 1996 to invest in a manufacturing facility for gear, targeting the country's burgeoning telecom sector through partnerships with local operators and laying the groundwork for subsidiaries like ECI Telecom India established later in the decade. These initiatives, combined with subsidiaries in (such as in and the ) and Asia (including ), enabled ECI to serve over 110 countries and capture significant market share in high-growth regions.

Privatization and restructuring

The dot-com bust severely impacted ECI Telecom, as the telecommunications sector faced overcapacity and market saturation following the collapse of internet-related investments in 2000. The company's revenues, which peaked at approximately $1.3 billion in 2000, declined sharply amid reduced capital spending by telecom operators and intense competition. By 2006, annual revenues had fallen to $656 million, reflecting ongoing financial pressures and operating losses, including a $108.9 million operating loss for 2000 alone. In response to these challenges, ECI undertook significant efforts in the mid-2000s, including cost-cutting measures and a strategic refocus on core competencies in optical transport systems. The company implemented workforce reductions, such as laying off 400 employees (about 12% of its workforce) in late 2000, and continued streamlining operations through subsequent years, resulting in a total headcount of 3,032 by the end of 2006. These initiatives involved consolidating product divisions and prioritizing high-margin optical and Ethernet transport solutions to improve efficiency amid declining sales in legacy areas. expenses, such as $2.6 million recorded in 2004, supported this shift toward sustainable operations in a competitive market dominated by low-cost rivals like . ECI's financial difficulties culminated in its in , when affiliates of the Swarth Group and acquired the company for $1.2 billion in cash, at $10 per share. This transaction, approved by shareholders and completed in September , led to ECI's delisting from the , ending its 25 years as a . The move to private ownership enabled further internal reorganizations, including the formation of a dedicated Networking Division in early to consolidate optical transport and Ethernet development, fostering a more agile and cost-efficient structure unburdened by public market scrutiny.

Merger with Ribbon Communications

On November 14, 2019, Ribbon Communications Inc. announced an agreement to acquire ECI Telecom Group Ltd. for a total consideration of $486 million, consisting of $324 million in cash and 32.5 million shares of Ribbon common stock. The deal aimed to merge Ribbon's expertise in (VoIP) software solutions with ECI's strengths in packet-optical transport networking, creating a more comprehensive provider of communications technology. The merger was completed on March 3, 2020, at which point ECI became a wholly-owned of Ribbon Communications. This transaction facilitated shared leadership structures and the integration of research and development efforts between the two companies, enabling collaborative innovation in networking technologies. Strategically, the merger was positioned to strengthen Ribbon's portfolio by incorporating ECI's optical networking capabilities, particularly to support the rollout of infrastructure and cloud-based services for service providers. The combined entity was projected to generate over $900 million in annual revenue, reflecting the scale of their unified operations and expanded market reach across more than 100 countries. Following the completion, immediate organizational adjustments included the departure of ECI's CEO Darryl Edwards in May 2020 as part of the post-merger transition, while Ribbon's leadership, under President and CEO Bruce McClelland, oversaw the initial integration phases. As ECI had been a private company since its 2007 , the merger did not involve delisting from public exchanges.

Products and technologies

Packet-optical transport systems

ECI Telecom's packet-optical transport systems represent a core component of its optical networking portfolio, designed to handle high-bandwidth demands in modern infrastructures. These systems integrate optical transport with capabilities, enabling efficient data transmission across metro, regional, and long-haul networks. The XDM series, introduced as a multiservice platform, converges traditional PDH, SDH/SONET, , , and MPLS functionalities into a single , supporting up to 60 Gbps of switching capacity for metro access and edge aggregation. The Apollo family builds on this foundation with advanced high-capacity DWDM systems tailored for long-haul and core applications, supporting up to 800 Gbps per wavelength in regional deployments and 1.2 Tbps for shorter distances. Key features include coherent for enhanced signal performance over extended distances, flexible grid technology allowing 12.5 GHz and super-channel configurations up to 128 channels, and seamless integration with to optimize metro and core network efficiency. These elements enable operators to mix 10G, 40G, 100G, and 400G services on a single platform, reducing rack space and operational complexity. In applications, ECI's systems are widely deployed by carriers for backbone infrastructure upgrades, particularly for 100G+ capacities. Notable examples include multiple 400G flex-grid deployments across by various operators to support rapid service provisioning and dynamic restoration, as well as Southeast Asian implementations of the SmartLIGHT packet-optical line for regional connectivity. In , Idea selected Apollo platforms to scale optical networks amid surging data demands, enhancing throughput while maintaining reliability. Post-merger, Apollo continues to see expanded manufacturing in as of 2024 and was used in a November 2025 deployment achieving 20 Tbps transmission on the JUNO trans-Pacific . These deployments highlight the systems' role in enabling high-performance, low-latency transport for cloud and mobile backhaul. ECI's evolution in this domain transitioned from SDH/SONET-based systems in the , which provided reliable circuit-switched transport, to packet-optical architectures in the with the launch of the Apollo 9600 series in 2011. This shift emphasized convergence of optical and packet layers for greater flexibility, culminating in platforms like Apollo that prioritize energy efficiency through high-density designs and programmable features, alongside scalability to accommodate terabit-level capacities without extensive hardware overhauls.

SDN/NFV and automation solutions

In 2015, ECI Telecom introduced its SDN platform through the LightApps suite, featuring controller-based orchestration for multi-layer networks that enables dynamic bandwidth allocation and efficient resource management across packet-optical infrastructures. This platform, built on open-source ONOS technology, allows service providers to automate service provisioning and optimize network performance in real-time, supporting scalable operations for evolving data demands. ECI's NFV offerings, including the Mercury family of virtualized network functions, enable deployment of routers, switches, and other elements as software on (COTS) hardware, promoting flexibility and cost efficiency. These solutions virtualize core network tasks, allowing operators to scale services without proprietary appliances and achieve CAPEX reductions of up to 40% through hardware consolidation and reduced . ECI advanced with the Multilayer Automation Platform, incorporating AI-driven for fault via Network Insights dashboards that monitor trends and health metrics for proactive issue resolution. The platform supports zero-touch provisioning through intent-based, template-driven workflows and low-code tools for bulk operations, while open APIs facilitate integration with external systems to enable and end-to-end orchestration. As of April 2025, emphasizes low-code platforms for streamlining IP Optical network operations. In September 2025, Ribbon launched the Acumen AI platform, enhancing SDN/NFV capabilities for autonomous networking. ECI's SDN/NFV solutions have been deployed by service providers for applications, such as Mercury uCPE implementations that deliver low-latency virtualized services for IoT ecosystems, ensuring real-time data processing at the network edge. For instance, deployments with regional operators like Regional Optical Network have utilized these technologies to enhance edge capabilities for IoT connectivity, supporting ultra-reliable, low-latency communications in distributed environments.

Network management and cybersecurity

ECI Telecom's network management capabilities are centered on the LightSOFT platform, a unified system (NMS) that provides end-to-end oversight across optical and packet domains. This multi-layer solution supports full (Fault, Configuration, Accounting, Performance, Security) functionality through an intuitive (GUI), enabling operators to monitor physical, Ethernet/MPLS, optical/OTN, and SDH/ layers in real time. Key features include graphical visualization, 15-minute and 24-hour performance monitoring, and advanced such as Traffic Analytics for impact assessment and LightPULSE for optical parameter analysis and OTDR testing. Real-time dashboards, including dedicated maps for availability, timing, and control, facilitate efficient visualization of large-scale networks via nested groups, ensuring always-on assurance and reliable service delivery. In terms of cybersecurity, ECI integrates protection mechanisms directly into its transport equipment through the LightSec suite, which employs hardware and software engines for threat mitigation. This includes network capabilities, such as layer-1 optical encryption supporting per-service protection up to 100 Gbps with line rates to 200 Gbps, without compromising or . is addressed via specialized applications within LightSec, defending against denial-of-service threats through multi-tiered filtering and detection. The suite also incorporates the Muse Cyber Security Suite for broader network protection, aligning with industry standards for secure operations. LightSOFT enhances these efforts with built-in security features like two-factor authentication, LDAP/ user administration, and an OS-level security package. ECI offers focused on network design and optimization, providing consulting to operators for service introduction, time-to-market acceleration, and avoidance of disruptive migrations. These services encompass planning, deployment, integration, testing, verification, and migration support, tailored to enhance operational efficiency across multi-vendor environments. In the context of disaggregated models, ECI's expertise aids in building open, interoperable optical solutions that optimize resource utilization and support SDN for automated provisioning. Following the 2020 merger with Ribbon Communications, ECI's offerings have been enhanced with advanced edge security features, including secure session border controllers (SBCs) that integrate threat intelligence distribution via NetProtect and TDoSProtect for real-time telephony denial-of-service mitigation. These additions enable distributed security policies across SBCs and next-generation firewalls, bolstering protection for real-time communications at the network .

Corporate evolution

Key acquisitions

ECI Telecom pursued several strategic acquisitions in the and to enhance its portfolio, particularly in networking, optical technologies, and capabilities. These moves allowed the company to integrate advanced software and hardware solutions into its core offerings, supporting expansion in metro and regional connectivity. In 1993, ECI acquired International Inc., an American firm specializing in products for ATMs, LANs, and WANs, which added approximately $80 million in sales and strengthened ECI's presence in the . The acquisition diversified ECI's focus beyond traditional voice transmission into services, with the unit later renamed ECI in 1995. A notable 2003 acquisition was Optovation, a Canadian optical performance monitoring startup founded in 1999, which bolstered ECI's capabilities in monitoring and managing optical networks for metro connectivity. This integration enhanced ECI's multi-service optical platforms by incorporating real-time performance analytics. In 2005, ECI acquired the optical activities and technology of , a Chinese firm, merging them into its existing , Hangzhou ECI Telecommunications Co., Ltd. This move expanded ECI's footprint in the Asian optical networking market and added expertise in optical transport systems. Also in 2005, ECI purchased Laurel Networks for $88 million in cash, a provider of next-generation IP/MPLS multi-service edge routers. The acquisition significantly expanded ECI's IP routing capabilities, enabling better support for remote access and edge services in carrier networks, with Laurel's integrated into ECI's broader packet-optical solutions. These acquisitions, primarily completed between the mid-1990s and mid-2000s, facilitated post-acquisition technology merges, such as incorporating acquired optical monitoring and IP edge functionalities into platforms like XDM for unified . Overall, they contributed to ECI's evolution into a more comprehensive provider of packet-optical and solutions prior to its merger with Communications.

Spin-offs and divestitures

In the early 2000s, ECI Telecom undertook several spin-offs and divestitures as part of a strategic effort to streamline its operations and concentrate on its core optical networking technologies amid challenging market conditions following the dot-com bust. One key move was the spin-off of its NGTS division, a provider of media gateways and voice compression solutions, which was merged with NexVerse Networks in December 2002 to form Veraz Networks, a focused on VoIP and technologies. ECI invested $10 million in the new entity and retained a minority stake, allowing it to exit non-core voice activities while maintaining some exposure to the VoIP market. This transaction enabled ECI to redirect resources toward its primary optical transport business. In 2003, ECI completed the sale of its InnoWave ECI Wireless Systems subsidiary, which developed fixed wireless broadband equipment, to Alvarion Ltd. for approximately $20 million, including $9.7 million in cash and warrants for additional shares. The divestiture, announced in February and closed in April, represented a significant writedown from InnoWave's earlier valuation but aligned with ECI's goal of shedding non-core wireless assets to bolster its financial position and focus on optical core competencies. Later that year, in September 2003, ECI spun off its Celtro unit from the NGTS division, which specialized in cellular infrastructure technology for optimizing GSM network transmission capacity by packetizing voice, data, and signaling to reduce backhaul costs. Momentum Management, along with Genesis and Cedar funds, invested $7-9 million in the independent Celtro Inc., with ECI retaining a minority stake and transferring 24 employees to the new entity; this move further distanced ECI from non-core cellular technologies. Additionally, in , ECI merged its Lightscape optical networking division with the Enavis cross-connect unit internally to consolidate operations and cut costs, resulting in approximately 200 layoffs and the creation of a division under new leadership. This restructuring, without an external sale, supported ECI's emphasis on integrated optical solutions by eliminating redundancies between the units, which had generated combined of about $57 million in Q3 but incurred substantial operating losses. In 2004, ECI distributed 7.6 million shares (about 42% of ECtel Ltd., a assurance and software provider and former majority-owned ) to its shareholders, reducing its stake to 16% and increasing ECtel's liquidity while freeing ECI to prioritize core growth and profitability. These actions collectively reduced ECI's exposure to peripheral segments like voice, , and software, enabling a sharper focus on packet-optical transport systems.

Current operations

Integration within Ribbon Communications

Following the completion of the merger on March 3, 2020, ECI Telecom has operated as the core of Communications' IP Optical Networks division, focusing on advanced optical transport solutions while leveraging 's broader cloud and edge portfolio. This structure has centralized ECI's expertise in programmable optical networking under 's unified operations, with combined (R&D) centers spanning (ECI's historic base in ), (for software and automation development), and the (in , for integration with 's IP technologies). These facilities enable collaborative innovation, supporting a global R&D workforce distributed across centers of excellence to accelerate product evolution. Synergies from the integration have primarily emerged through the fusion of ECI's Apollo optical systems with Ribbon's IP voice and session border controller technologies, enabling end-to-end solutions for 5G transport, including multiservice 5G xHaul architectures that combine IP aggregation with optical layer efficiency. This integration expands Ribbon's addressable market by cross-selling optical capabilities into Ribbon's existing IP customer base and vice versa, contributing to projected revenue synergies as outlined in the merger framework. As of Q3 2025 (ended September 30), the IP Optical Networks segment accounted for approximately 42% of quarterly revenue, with segment revenue of $91 million (up 11% year-over-year) contributing to total trailing twelve-month revenue of approximately $869 million. This underscores its role in bolstering overall financial performance amid growing demand for high-capacity networks. Key developments in 2025 highlight the deepened operational fusion, such as the September 3 deployment of Ribbon's Apollo 800G optical transport solution by North Georgia Network (NGN) to modernize rural infrastructure with scalable 100G-to-800G links. This initiative demonstrates the Apollo platform's integration into Ribbon's ecosystem for future-proof service delivery. Additionally, the company has enhanced its emphasis on cloud-native networking, incorporating ECI-derived optical elements into Ribbon's Acumen AI platform for autonomous orchestration and real-time communications in hybrid cloud environments. Initial integration challenges, including ongoing acquisition- and integration-related expenses—such as $3.9 million in legal and professional fees recorded in Q2 2025—have been offset by robust business momentum, evidenced by a 35% year-over-year increase in backlog as of Q1 2025 driven by demand for IP optical solutions. Under a unified Ribbon branding, ECI's legacy products like Apollo have been rebranded and streamlined, fostering and a cohesive across the combined entity.

Global presence and workforce

Ribbon Communications, following its 2020 merger with ECI Telecom, maintains a global footprint with headquarters in , , and key legacy facilities for ECI in , . The company operates offices and facilities in over 30 countries across , , the and , , and , including major sites in the (e.g., , ), (, ), (Beer Sheva, ), (Bengaluru, , , ), and (, ). Key centers are located in , , and , supporting innovation in optical networking and IP solutions. The workforce comprises approximately 3,100 employees distributed across these regions, with 28% in , 31% in EMEA, 38% in , and 3% in as of 2023. Engineering and technical roles form a significant portion of the staff, emphasizing global collaboration on product development. Diversity initiatives promote inclusivity, with women comprising 26% of the total workforce and 17% of management positions in 2023, alongside efforts to reach 30% female representation in leadership by the end of 2025; 91% of employees reported feeling valued in annual surveys. Ribbon serves more than 1,000 customers worldwide, including Tier 1 carriers such as , Verizon, and , providing solutions for service providers, enterprises, and operators who serve end-users in over 140 countries. In , the company has prioritized growth in through federal and enterprise modernization projects, while expanding in the Asia-Pacific region via increased fiber deployments and partnerships with operators like . In October , Ribbon disclosed a cybersecurity breach attributed to a nation-state , affecting systems with access to major telecom firms; the company stated no material impact on operations or finances. Sustainability efforts align with Ribbon's ESG goals, including a 33% reduction in Scope 1 and 2 since 2018, achieved ahead of the 2030 target through energy-efficient practices. The company has optimized data centers and labs by reducing equipment racks by 61% since 2012, lowering electricity consumption by 26%. Low-power in platforms like Apollo enhance network efficiency by minimizing power needs for high-capacity , contributing to broader environmental objectives such as net-zero aspirations.

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  81. https://www.smartenergydecisions.com/news/ribbon-communications-emissions-fall-by-33/
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