Redback Debuts the SmartEdge 1200 as the Multi-Access Edge Flagship, Flying Under Ericsson's Full Service Broadband Banner

| June 5, 2007 | Broadband Infrastructure | Competitive Intelligence Report

| Analysts: Glen Hunt, Erik Keith

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

Event Summary

June 4, 2007 – Redback announced the SmartEdge (SE) 1200, its third-generation multiservice edge router, which supports up to a million subscribers per rack for triple play services such as HDTV, HD VoD, and broadband mobility. The SE is at the center of Ericsson’s “Full Service Broadband” architecture for converged wired and wireless networks. The SE 1200 doubles the capacity for video, extends triple play services to mobile networks, and can integrate key network applications into a single router.

Analytical Summary

• Current Perspective: Positive on Redback’s launch of the SmartEdge (SE) 1200, because it addresses three critical edge router/IP service platform capabilities; it doubles the capacity to handle video applications, extends triple/multi-play services to mobile networks and integrates three critical network applications directly into the router to eliminate external network devices. The product is endorsed by ChungHwa Telecom (CHT) where Redback currently supports more than 300,000 IPTV subscribers plus VPN and VoIP services. The early customer endorsement shows that CHT is satisfied with SE capabilities, the new product meets the needs of a key and that it is listening to the overall requirements for next generation multiservice edge routing platforms.

• Vendor Importance: Very high to Redback since its SE series edge router is now the centerpiece of the company’s Full Service Broadband architecture (developed by parent company Ericsson and adopted by Redback). As Redback/Ericsson’s strategic multi-access edge platform designed to fulfill the vision of converged wireline and wireless networks, the SE needed additional capacity and the ability to support ancillary network applications such as security, session border control (for VoIP) and to monitor and control peer-to-peer sessions that can seriously impact the performance of the network’s offered services.

• Market Impact: High on the overall service provider edge/multi-access edge market (i.e., loosely composed of the edge router, multiservice and broadband aggregation sectors)s since the new capabilities bring the level of performance and capacity of the SE portfolio on par with the major competitors. The SE will be leveraged by Ericsson as part of its overall Full Service Broadband architecture/strategy and will be called on to deliver highly scalable voice, video and data services for next generation converged networks.

Recommended Competitor Actions

• Alcatel-Lucent should highlight the strengths of its IP router product portfolio which includes wireline and wireless solutions that have gained significant momentum as evidenced by its number two market share position in the overall service provider edge router vendor, as reported by Synergy Research’s Q1 2007 router report.

• Cisco should highlight the strength of its IP NGN portfolio for wireline and wireless networks, and its leading market share position in the service provide edge router market, according to Synergy Research.

• Juniper should highlight the long running success it has had with its M-Series edge router platforms and its E series broadband service router platforms (the first generation ERX and the relatively new E-320). Juniper should also highlight the recent extensions to its Service Deployment platform (SDX300), which facilitates rapid service activation.

• Other service provider edge/IP service platform vendors need to consider their solutions in the context of a complete end-to-end service model and either partner or become an integral component within one of the Tier 1 vendor’s solutions. As service providers move further toward converged wireline and wireless models, being part of an integrated solution ecosystem will become critical.

• Suppliers of point products such as security, SBC and peer-to-peer monitoring and session control and other appliance or server-based applications should take notice of the trend developing to incorporate these capabilities into the routing fabrics supplied by the major vendors.

Recommended End User / Customer Actions

• Service providers currently using Redback SE series products should evaluate the new functionality now present on their existing SE 800/400 routers and determine if the offered application support meets their deployment requirements. Since the breadth and depth of a standalone solution may be extensive, providers should determine the mandatory performance metrics and features required to support their specific needs.

• Service providers that are currently faced with scaling their advanced services networks should consider the added capabilities and capacity offered by the new SE 1200 and the option to run ancillary applications directly on the same platform. As CapEx and OpEx pressures continue to impact service providers, the overall end-to-end solutions delivery infrastructure and the ability to leverage vendor network management system capabilities should be considered in deployment decisions.

• Service providers currently using competitive products should evaluate the value proposition offered by the SE 1200 and compare with their current architectures and projected network build out. As with most networks, careful consideration should be given to leveraging existing equipment, but not at the expense of long-term operational efficiencies or the ability to deliver advanced services.

• Service providers leveraging standalone appliances and servers should press Ericsson/Redback for detailed roadmaps related to their application support. With strong best-of-breed offerings, service providers should insure that the integrated solutions will meet their current and future requirements. In regards to security and peer-to-peer support, for example, providers should be convinced that the SE 1200 can deliver the level of support required to meet future requirements.

• Cable operators and businesses should evaluate the concept of ‘megabit mobility’ services as a new source of revenue. Megabit mobility can make it possible for a cable TV service to be as portable as cell phone service. It also can allow businesses to deliver targeted ads and provide the option to use the network to store video files online and play them back over any Internet-enabled device.

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