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Mobile World Congress 2008

Sonus Jumps into FMC Game with Unveiling of mobilEdge Platform

| Feb 13, 2008 | IP Services Infrastructure | Show Update

| Analyst: Joe McGarvey


Current Perspective: Positive/Neutral
Vendor Importance: Moderate
Market Impact: Low/Moderate

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Event Summary

February 11, 2008 – Sonus Networks unveiled wireless technology – the mobilEdge -- designed to allow mobile operators to rapidly increase their average revenue per user and leverage their existing high-speed data networks to delivery new services to mobile handsets. The new product increases coverage of 2.5G and 3G mobile multimedia services and is designed to help operators delivery quadruple-play services and expand their wireless networks without investment in legacy radio access network equipment.


Analytical Summary

• Current Perspective: Slightly positive on Sonus Networks’ introduction of its mobilEdge Broadband Mobile Convergence (BMC) solution, as the new product enables the company to leverage its April 2007 purchase of Zynetix, as well as its existing product line. The mobilEdge is essentially an integration of the Zynetix mobile switching technology into Sonus’ market leading GSX media gateway platform. The product announcement catapults Sonus into the heart of the fixed mobile convergence (FMC) movement, an arena that is extremely crowded with several vendors taking an alternative approach to Sonus’ strategy.

• Vendor Importance: Moderate to Sonus, as the company is looking to push its core media gateway technology into a new market segment, increasing the appeal of its platform to mobile operators and service providers operating both fixed and mobile networks. Given the current embrace of IMS, it is likely that it will take more than a year for a serious demand to emerge for the mobilEdge product line. In the meantime, Sonus can count on its traditional market for the GSX platform – core network providers – to generate revenue.

• Market Impact: Low to moderate on the segment of the FMC market that is focused on providing an access platform to enable operators to deliver a core set of services to multiple types of access networks. Sonus is entering a market that is already crowded with competitors that are looking to delivery similar features as the mobilEdge platform, as well as additional functionality, such as security gateway capabilities. Sonus’ approach to the market, using its media gateway platform as a vehicle, is unique but not particularly threatening to the competition.



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