Mobile World Congress 2008

Tellabs Strengthens Its Integrated Mobile Solution with New xDSL-Capable 8607 Access Switch

| Feb 12, 2008 | Carrier Infrastructure | Show Update

| Analyst: John Marcus

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

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Event Summary

February 11, 2008 - Tellabs introduced its 8607 access switch, the newest member of its 8600 Managed Edge System. The 8607 delivers DSL and G.SHDSL capabilities and supports a hybrid mobile backhaul model that can leverage existing TDM circuits for voice traffic while off-loading high bandwidth data traffic onto an xDSL backhaul network. The 8607 handles all mobile traffic types and is environmentally hardened to handle extreme conditions.

Analytical Summary

• Current Perspective: Positive on Tellabs’ new 8607 Access Switch, since it adds the ability to support various DSL technologies with its IntegratedMobile solution. With the addition of the 8607, Tellabs’ mobile operator customers can send mobile traffic over nearly any technology, including fiber, copper, ADSL and G.SHDSL, as well as microwave-based backhaul facilities. The new capabilities are significant since they support a growing trend by mobile operators to leverage any infrastructure technology, wireline or wireless, to support the massive growth in data bandwidth required to support mobile broadband services.

• Vendor Importance: Moderate to Tellabs, since the new platform brings additional strengths to its overall IntegratedMobile solution set, which is comprised of multiple 8600 series access switches, the 8800 MSR series routers, the 8000 Network Manager, plus various transport platforms. The new 8607 adds the ability for mobile operators to tap into the massive xDSL infrastructure capacity to transport their growing mobile data traffic. Supporting G.SHDSL is especially interesting since the technology supports symmetrical data streams over copper at rates up to 2.31 Mbps, and can transport T1, E1, ISDN, ATM and IP signals, which enables it to transport multiple generations of mobile traffic.

• Market Impact: Moderate on the mobile backhaul market, since the ability to connect to DSL/G.SHDSL infrastructures to satisfy mobile data backhaul requirements offers potential relief for bandwidth constrained mobile backhaul networks. The move has been somewhat limited due to concerns over using a shared infrastructure not known for its quality of service attributes – although that is changing with newer xDSL technology deployments. The initial application would most likely be to continue to transport voice traffic over the existing TDM infrastructure while off-loading high bandwidth data traffic onto the xDSL infrastructure. The approach appears to be of interest to North American mobile operators primarily, but once proven, could be useful on a global basis.

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