Anagran Launches - Bringing with It the Next Generation "Green" Flow Router

On August 6th Anagran launched as a company and announced the availability of its first product, the FR-1000 Intelligent Flow Router, a new edge box designed to meet the demands of next generation of video, voice, data and wireless applications. The router proposes to eliminate the network performance issues of packet-based routers and provides “green” benefits such as low energy consumption. The system is aggressively priced to compete with Layer 3 routers – debuting at USD 70,000.

Recommended Competitive Responses

► Alcatel-Lucent needs to show that its 7XXX series of Service Routers and Ethernet Service Switches offer a compelling solution for next generation IP networks as evidenced by its rapid ascension to the number two market share position in the service provider edge market according to Synergy Research’s Q1 2007 report.

► Cisco needs to show that its IP NGN portfolio addresses the needs of service provider through an evolutionary process.

► Ericsson should highlight its depth of experience in designing and delivering total end to end solutions based on best of breed solutions.

► Juniper should highlight its mutiplay solutions, which extend from the IP core to the edge with a consistent JUNOs based service aware router architecture.

► Nokia Siemens Networks should highlight its leadership position in both wireless (from Nokia) and wireline (from the Siemens) network infrastructures.

► Nortel should evaluate the merits of adding flow routers to the newly launched Carrier Ethernet ecosystem in order to continue to expand the breadth of options available to service provider customers. Soapstone, an early member of the ecosystem, should consider supporting the management and provisioning for flow routers as part of its on-going roadmap to support multiple technologies with its Provider Network Controller (PNC).

Recommended End User/Customer Responses

► Service providers who are considering their options for network expansions should take a closer look at the value propositions put forth by Anagran. If validated, the flow router can potentially reduce an operator’s CapEx as it relates to expansion of the edge, reduce wasted or stranded bandwidth in the IP core, offer the QoS required for video and other mission/delay-critical applications and reduce the level of power consumption per node.

► Aside from the obvious evaluation of the product’s proposition, providers should press Anagran for insight into its on-going business model. As a startup, it naturally lacks the financial depth at this point to source volumes of edge gear, a support staff to address lifecycle requirements, etc. Anagran is funded by investors such as Advanced Technology Ventures, Arrowpath Venture Capital and Draper Fisher Jurvetson who will play a role in the company’s evolution.

► Anagran noted that it would be selling and supporting its products through a network of channels and some direct sales efforts for named accounts. Service providers should validate the level of commitment and expertise provided by the channel and other complimentary networking expertise and value add.

► Service providers should press their current equipment suppliers to compare their solutions against those offered by the FR-1000 from a cost and service delivery perspective. Service providers should evaluate how the flow router fits into their overall network architecture for ease of management and provisioning and how their solutions address the QoS and traffic preference requirements.

► Service providers who are evaluating their overall network architectures and are considering deploying an IMS-based solution should evaluate how a flow routing architecture could perhaps simplify the overall call admittance and control issues related to adequate available bandwidth to support voice and video under high network load conditions. Requirements and policies related to P2P traffic and support for emergency services should be included.

| Client Access - Carrier Infrastructure |

Nortel Strikes Up with GENBAND, Extends Its Class 5 Replacement Solution with New Media Gateways

On July 12th Nortel teamed up with GENBAND to resell and support that company’s G6 Universal Media Gateway and G2 Compact Media Gateway. These media gateways complement the Nortel Communication Server (CS) 1500 and CS 2000, which have capabilities to migrate existing line equipment from both the Nortel DMS-100 and DMS-10. The agreement also extends Nortel’s migration capabilities to DCO and EWSD switches – technologies widely installed in current carrier telephone systems. The combination of Nortel with GENBAND enables users of these legacy TDM voice switches to migrate to Nortel VoIP.

Recommended Competitive Responses

► Rivals in the media gateway market, particularly those with their own softswitch, should assert they can deliver a more cohesive solution immediately, taking advantage of any time needed by Nortel to integrate the GENBAND gateways into its network management architecture, for example.

► All competitors offering PSTN replacement portfolios need to contrast their softswitch offerings from Nortel’s by showing how their solutions represent more aggressive and straightforward transition mechanisms for VoIP. Sonus, Veraz, and others should reiterate the stability of their own feature set in Class 5 applications, as proven with their named customer deployments.

► MetaSwitch should continue promoting its MetaSphere service delivery platform, leveraging the capabilities and technologies of Data Connection, its parent company, as a competitive differentiator.

► Taqua needs to conduct a formal company launch. It has a proven product in the Class 5 alternative arena, with a portfolio of customers. The company was spun out from GENBAND in May 2007, and while the Taqua name is recognizable as a product, many do not yet recognize it as an independently managed company.

► CopperCom should continue to provide progress reports regarding deployments of the CSX 2100/1100 in a host/remote configuration. Multi-switch deployments are a big component of CopperCom’s strategy to expand the product’s addressable market.

► Alcatel-Lucent must clear up confusion regarding its merger-induced overlapping product portfolios before it can aggressively respond to the addition of GENBAND’s G6 and G2 in Nortel’s media gateway lineup. Following its merger, Alcatel-Lucent now possesses at least four softswitches plus a number of media gateways with considerable overlap. .

Recommended End User/Customer Responses

► Regional service providers and IOCs that need to implement a highly functional, end-to-end legacy switch replacement with a full set of Class 5 and VoIP services should consider the Nortel CS 1500 and CS 2000, augmented now with GENBAND’s G6 and G2 media gateways. The CS 1500, targeted at carriers serving up to 45,000 lines, is an integrated legacy-replacement solution, while the larger CS 2000/CS 2000 Compact is designed for larger installations and multinational applications.

► Small-market service providers with considerable DLC connectivity requirements, as well as DMS peripherals or line frames from DCO and EWSD installations, that are looking to deploy Class 5 alternative solutions should strongly consider the CS 1500 solution, as it offers an attractive integrated solution that allows them to retain their investments in peripheral equipment.

► Other equipment vendors that have a need for proven media gateways should consider GENBAND’s broad portfolio of gateways, especially the G2, wherever there is a need for an environmentally hardened, compact media gateway. Obviously, such equipment vendors must also test and validate GENBAND’s media gateways for interoperability with their own softswitch platforms.

► Regional service providers and IOCs should avoid making TDM Class 5 replacement purchases without validating the solution’s current VoIP capabilities and advanced services based on SIP and IMS. Service providers that merely swap out existing circuit switches for smaller TDM devices based on promises to migrate to SIP and IP at a later date will be defensively positioned against cable MSOs and virtual VoIP service providers such as Vonage.

► All former UNE-P CLECs need to look at a variety of options for reducing dependence on local ILECs and transitioning to a facilities-based business model. These service providers should weigh the relative merits of each Class 5 replacement platform, as well as solutions advocated by hosted multimedia applications server makers, such as BroadSoft and Sylantro.

| Client Access - Carrier IP Telephony |