Oct 24, 2009 (06:10 AM EDT)
Tellabs To Acquire WiChorus For $165 Million
Read the Original Article at InformationWeek
With several mobile network architectures converging on the Long-Term Evolution standard (LTE), Tellabs is moving to tie them all together by acquiring start-up WiChorus and its mobile packet core technology. Tellabs, already prominent in Ethernet and mobile back haul solutions, said it will pay $165 million for WiChorus.
With most major carriers throughout the world pledging to eventually move to LTE, WiChorus has developed its SmartCore platform to smooth the way to LTE and to facilitate paths between disparate networks such as HSPA and WiMax. The startup recently landed a showcase contract with WiMax provider Clearwire to deploy its SmartCore platform throughout Clearwire's rapidly-expanding WiMax network.
"The SmartCore platform can offload as much as 70% of traffic at the network edge, increasing core network efficiency and improving user experiences," Tellabs said in describing WiChorus' importance. "Customers can save as much as 50% in capital expenses, compared with the present method of operation."
Tellabs said that in combination with its mobile backhaul expertise, the inclusion of WiChorus' SmartCore will be invaluable, because it is purpose-build for 4G, LTE and WiMax.
"As we expand logically into an adjacent market with the SmartCore platform, Tellabs and WiChorus can help mobile customers succeed by revolutionizing the mobile Internet," said Robert Pullen, CEO and president of Tellabs, in a statement. He added the combination of the two companies' products will enable their customers to receive rich and personalized user experiences.
Rehan Jalil, CEO and president of WiChorus, will head a new Tellabs IP and mobile Internet Group as senior vice president. Before WiChorus, Jalil was a principal executive at Aperto Networks.