CTIA Wireless 2009

Alcatel-Lucent Steps Further into the Mobile Core - Offering Its End to End LTE Solution

| Apr 2, 2009 | Carrier Infrastructure | Competitive Intelligence Report

| Analyst: Glen Hunt

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

Event Summary

April 1, 2009 -- Alcatel-Lucent introduced its Evolved Packet Core (EPC) portfolio, designed to offer mobile broadband services using Long Term Evolution (LTE) technology. Already selected by leading adopters of LTE such as Verizon Wireless, the EPC leverages its expertise in IP service routing and wireline “triple play” networks. LTE offers data speeds comparable to fixed broadband technologies, and offers significantly reduced latency to ensure high-quality, real-time multimedia services.

Analytical Summary

• Current Perspective: Very positive on Alcatel-Lucent’s announcement of its Evolved Packet Core (EPC) solution, because it extends the vendor’s reach into the next generation mobile core with a fully managed solution based on its field proven 7750 Service Router (7750 SR) for gateway functions and an in-house developed ATCA-based platform to provide control plane functionality for MME and PCRF functions. The 7750 SR is already deployed in multiple mobile networks to provide multi-service backhaul support. The launch of the EPC solution further compliments its Mobile Evolution Transport Architecture (META), which provides a full range of services to satisfy mobile backhaul traffic requirements over wireline, wireless and/or optical infrastructures. The announcement also acknowledges the importance of providing efficient end to end management with its 5620 Service Aware Manager (5620 SAM).

• Vendor Importance: High to Alcatel-lucent, because the evolving all IP-based 4G mobile core market represents a significant growth opportunity for the company’s IP product portfolios. The 7750 SR and companion products have gained significant market momentum in wireline networks to deliver business and residential services as well as legacy and IP-based backhaul services. Alcatel-Lucent is leveraging its flexible router platform by adding a Mobile Gateway - Integrated Services Module (MG-ISM) to provide gateway support (Serving Gateway and Packet Data Network Gateway), a proven approach that it has used for application assurance and IPSec support. To provide the MME and PCRF functions, the solution includes an in-house developed ATCA platform, which gives it full control over the end to end solution.

• Market Impact: High on the mobile core market, because the solution being offered by Alcatel-Lucent addresses key performance, service sophistication and network scalability features that will be required by mobile operators as they evolve their mobile infrastructures in preparation for the onslaught of 4G services such as LTE. Further evidence of the announcement’s market impact is reflected in Verizon’s announcement at Mobile World Congress 2009, that Alcatel-Lucent was selected to deliver solutions for three key LTE areas including EPC, LTE-enabled radio access and service enablement.

Recommended End User / Customer Actions

• Current Alcatel-Lucent mobile customers should consider evaluating the company’s EPC solution to deliver their next generation LTE services, since the solution will be ready for trial during the second half of 2009 in preparation for 2010 deployments.

• Mobile operators should consider the merits of supporting both 2G/3G services with their LTE solutions. If they choose to do so, they should press Alcatel-Lucent to add legacy support to their offer, either before mass deployment or by providing an interoperability path to enable all services.

• Mobile operators should compare the merits of EPC solutions offered from the various top vendors to determine the best mix of technologies and approaches that match planned service rollouts. Operators should consider the scale and capabilities of each solution, but in addition, the management and OAM aspects of the solution should be evaluated to determine which offer delivers the lowest operational cost.

• Operators delivering both fixed and wireless services should consider the long term potential of using common equipment to support all services. This could reduce the number of platforms and software systems that are needed to deliver the services portfolio as well as reduce sparing costs for the hardware.

CLIENTS ONLY

Current Perspective

Competitive Positives and Concerns

Recommended Vendor Actions

Recommended Competitor Actions

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