NexTone and Reef Point Unite under FMC Banner to Form NextPoint

| Dec 5, 2007 | Carrier IP Telephony | Competitive Intelligence Report

| Analyst: Joe McGarvey

Current Perspective: Positive
Vendor Importance: High
Market Impact: High

Event Summary

On December 4th SBC maker NexTone and security gateway manufacturer Reef Point announced plans to merge to form NextPoint Networks. The combined company is designed to bring mobile and fixed network operators the ability to deliver voice, data, and video services quickly, securely, and profitably to subscribers across multiple types of access networks. Reef Point CEO Woody Ritchey was named the NextPoint CEO and David Walsh is the company’s Chairman.

Recommended Competitor Actions

• Acme Packet should continue to invest in security and other technology that will enable it to manage sessions from a variety of access sources, including wireless technologies, such as WiFi and femtocells. Acme Packet should look to add functionality that will make its Session Directors compatible with 3GPP and 3GPP2 standards, such as a Packet Data Gateway (PDG) and Packet Date Interface Function (PDIF), respectively.

• Airvana needs to announce officially the availability of the Universal Access Gateway (UAG), as well as demonstrate customer traction to validate the requirement for the product.

• AudioCodes needs to promote the dual-mode (SBC and security gateway) capabilities of the nCite 4000. The company should provide a case study of a deployment where the product is performing double duty. In addition, the company should publish white papers and other literature that details the advantages of a dual-mode solution.

• Azaire should continue to play a prominent role in effective standards bodies and industry advocacy groups. As a small player, Azaire has benefited through association with more prominent participants in standards bodies, such as large NEPs and Tier 1 carriers. The company's recently joined the Femtocell Forum, but only after the forum's legitimacy was established following the membership of several carriers and NEPs.

• Juniper Networks, Alcatel-Lucent, Cisco, and Redback Networks need to make decisions and public pronouncements regarding their plans to endow IP routers and aggregation devices with functionality for supporting session management from multiple access technologies. Given their existing prominence at the edge of access networks, IP routers would pose a significant threat to SBCs and security gateways if fortified with additional functionality, such as DPI.

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Analytical Summary

Current Perspective

Competitive Positives and Concerns

Recommended Vendor Actions

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