Ericsson and Cisco Systems are partnering to develop and sell next-generation networks — Ericsson because it’s cheaper than buying in or building the equipment itself, and Cisco because it’s quicker than buying Ericsson.

The companies will initially focus on products and services for carriers, combining Ericsson’s radio access, mobility and operations support systems products and services with Cisco’s IP networking equipment.

Later, they expect to co-develop enterprise mobile networking systems and platforms for the Internet of Things.

Ericsson staff will begin selling Cisco products immediately, and the partnership is expected to bring Ericsson an additional $1 billion in annual revenue by 2018, Ericsson president and CEO Hans Vestberg said Monday in a conference call with analysts.

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