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Telefon AB L.M. Ericsson’s relationship with Akamai was just recently announced (2/14/2011). The announcement is a good sign for Ericsson and Akamai.

The announcement was not met with the same level of attention has the Nokia-Microsoft deal and that is probably because analysts and the like have become so wrapped up with smartphone fever.

Handsets are important but they represent one piece of the puzzle. What people forget is that the telecom network is comprised of many different parts. Handsets enable the user to access all forms of content across the mobile web. The investment community has made a fortune off of the handset business and that is great. Investors have begun shifting their attention to 4G to make the next boatload of cash. However, the investment community does not appear to understand that 4G network technology is not the only piece of this emerging content business.

At the heart of this emerging content business is the core network. I am referring to “the network of networks”; an old concept in which the entire network is viewed as a single information engine. Today the industry calls the concept: “cloud computing”. I have always viewed the network as a conglomeration of multiple networks that act in concert with each other.

Cloud computing is basically distributed processing of information; in fact we used to call it “distributed processing”. And, yes, I classify voice as an information stream.

We are seeing the evolution of the wireless and wireline networks. In order to monetize and optimize the networks we need to be able to have both types work with each other in a way that allows piles of information to flow efficiently from an operations and cost perspective. There are some who have completely discounted the wireline network and those folks would be wrong. The wirleine network is going to be here for years and is still essential to complete every wireless call even between wireless networks.

Theoretically, if cloud computing does what telecom professionals envision it to achieve, then we could be looking at a positive user experience. Cloud computing if implemented properly will enable information to flow between the wireless and wireline networks more efficiently and to be processed with the network fabric more efficiently.

As an aside, building it is going to be far more difficult than anyone can imagine.

As I had stated, Ericsson’s deal with Akamai is a good sign for both companies. The deal gives me hope that both companies are looking ahead rather than trying to catch up with other vendors.

The handset has been getting all of the attention. However, to further monetize or capture the value of what consumers are seeing over the handset, a network needs to be in place to enable and facilitate connectivity.

I suggest investors keep an eye on this relationship and any deal involving leveraging cloud computing technologies.