CTIA Wireless 2009

Acme Packet Takes a Logical Step on Femtocells, Builds Out Partner Base

| Mar 26, 2009 | Wireless Infrastructure | Flash Analysis

| Analyst: Peter Jarich

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

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Event Summary

March 25, 2009 – In the run-up to CTIA 2009, ACME Packet announced partnerships with AirWalk Communications, Tatara Technologies and Ubiquisys. Positioned as part of the company’s efforts to “round out” its SIP femtocell solution, the new partnerships put ACME together with femtocell manufacturers (AirWalk and Ubiquisys) as well as a vendor supporting SIP connectivity into legacy mobile networks including handoff, E-911 and supplementary services (Tatara).

Analytical Summary

• Current Perspective: Positive on Acme Packet’s new femtocell partnerships, because while we always encourage companies to get their news out in front of major trade shows, the real beauty of Acme Packet’s partnerships is that they bring the company closer to actual femtocell deployments. To be sure, Acme Packet is already a part of femtocell trials and deployments (securing the femto core, supporting SLAs and regulatory compliance). Its new partners and interoperability proof points, however, position the company as part of a broader femtocell solution – potentially delivering, though not ensuring, sales channels.

• Vendor Importance: High to Acme Packet, because the company has already made it clear that it seems femtocells as a strategic sales opportunity – if not the biggest market opportunity – for its security gateway and SBC products. To the extent that femto gateways require a security gateway and some operators are looking at SIP-based integration, Acme Packet is correct. Yet to prove its commitment to the market, demonstrate its capabilities and better insert itself into deals, partnering with actual femtocell vendors and other femtocell core players was essential.

• Market Impact: Low on the femtocell market, because Acme Packet’s role in the industry is already well known. Yes, working directly with AirWalk, Tatara and Ubiquisys provides a more visible display of Acme Packet’s femtocell capabilities and value proposition. Of course, the company has already been selling to the space; the partnerships do little more than codify what were likely existing relationships, particularly to the extent that all four companies have been actively plugging SIP femtocells and have been involved in joint trials, demonstrations, etc.

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