The Mobile Network is seeing more M&A as the industry sees growth in Packet Core and Network Functions Virtualization, Radio Access Network (RAN), and Back Office IT.

1. Mobile Network Market Overview
H1 2013
0

2. Contents
I.
Recent M&A Activity
II.
Mobile Network Market Overview
III.
Key Highlights
1

3. Recent M&A Activity
2

4. M&A Accelerating in the Sector
Transaction
EV/Revenue
Value ($M)
Multiple (x)
04/08/13
NA
NA
Microsoft Corporation, Mediaroom IPTV Business comprises Internet protocol television business of Microsoft
Corporation which designs software used by phone companies to deliver television over the Internet.
2)
04/03/13
NA
NA
Tekelec, Inc. develops telecommunications products for fixed, mobile, and packet networks worldwide. It provides
policy management, diameter and SIP signaling, subscriber data management, performance intelligence center, and
SS7 signaling products.
3)
04/03/13
$310.0
NA
Ubiquisys Ltd., a mobile communications company, designs and develops communications devices for mobile
operators and consumers.
4)
02/04/13
$2,003.8
5.8x
Acme Packet, Inc. provides session delivery network solutions that enable the delivery of voice, video, data, and
unified communications services and applications across Internet protocol networks.
5)
01/23/13
$475.0
NA
Intucell Ltd. provides self optimizing network solutions to mobile operators worldwide.
6)
01/23/13
$20.0
NA
Neuralitic Inc. provides mobile data intelligence solutions.
7)
01/07/13
$27.4
NA
Vineyard Networks develops and provides network application intelligence solutions.
8)
05/07/12
$145.0
3.0x
Anue Systems, Inc. provides networking solutions to telecommunication and cable service providers, government
agencies, and corporations with data centers and enterprise networks.
9)
05/01/12
$30.0
NA
Ortiva Wireless, Inc. provides video optimization solutions for mobile network operators (MNOs) and managed
service providers (MSPs).
10)
02/21/12
$400.0
NA
BelAir Networks Inc. provides mobile wireless broadband mesh networking solutions for video, voice, and data.
11)
02/20/12
$129.7
NA
Traffix Systems Ltd. provides next generation networks (NGN) control plane and diameter solutions for
telecommunication companies.
12)
06/14/11
$1,150.0
NA
Traffix Systems Ltd. provides next generation networks (NGN) control plane and diameter solutions for
telecommunication companies.
#
Date
1)
Acquirer
Target
Target Business Description
3

5. Mobile Network Market Overview
4

6. Mobile Network Market Map
Packet Core
Media
GW
Diameter
Routing
BSS / OSS
Macrosite
RAN
CSCF
Back office IT
Network and
Subscriber
Analytics
RAN
IMS Functions
Applications
Services
HLR/HSS
Subscriber
Management,
Athentication,
Roaming
PCRF
Wifi
Offload RAN
Metrocell
RAN
ADCs
E-RAN
Serving GW
PDN GW
MME
Femto GW
CDN
functions
Network
Security
Flow
Processing
DPI
SON / RAN
Optimization
Backhaul
Femtocells
eNodeB
5

7. Companies in the Mobile Network Sector
Packet Core
Network Security
Serving GW/PDN GW/MME
FemtoGW
DPI
Flow Processing
CDN
SON/RAN Optimization
6

8. Companies in the Mobile Network Sector (cont.)
Packet Core
IMS Functions
PCRF
CSCF
ADCs
Media GW
Subscriber Management, Authentication, and Roaming
HLR/HSS
Diameter Routing
7

9. Companies in the Mobile Network Sector (cont.)
RAN
Backhaul Equipment
Femtocells
Metrocell RAN
Wifi Offload RAN
eNodeB
Macrosite RAN
Enterprise RAN
8

10. Companies in the Mobile Network Sector (cont.)
Back Office IT
BSS/OSS
Mobile Analytics
9

11. Key Highlights
10

12. Key Highlights:
Packet Core and Network Functions Virtualization

Mobile Packet Core is dominated by tier 1 suppliers
— Cisco, Ericsson, Huawei, NSN. New entrants include Juniper, Alcatel-Lucent, FIV

New hardware and software solutions increasingly introduced to optimize network performance
— Network security, subscriber security, policy management, policy enforcement, deep packet
inspection, ADC (app delivery controller), video processing, diameter routing, many IMS
functions.
— We expect major suppliers to fill in portfolios through acquisitions

Strong trends to virtualize many functions from “big iron” hardware to software on carrier grade
servers

Along with incumbents, FIV is in prime position to expand its portfolio with acquisitions
11

13. Key Highlights: Radio Access Network (RAN)
Small Cells and Wi-Fi Offload

Consumer femtocell market established and maturing

Carrier owned and managed Wi-Fi market entering high growth
— Lowest cost bandwidth to dense pedestrian users
— Maturing systems market with leaders – Cisco, Ericsson, Ruckus, Huawei
— Software ecosystem still developing. M&A likely needed to fill out client apps, policy,
authentication

Outdoor small cell (licensed) market developing quickly
— Major RAN vendors expected to dominate Ericsson, Huawei, NSN, Alcatel-Lucent
— Small hardware and software tuck-ins likely required to fill portfolio – custom ASICs, SR wireless
backhaul

Indoor small cell (licensed) market still nascent
— Opportunity for non-RAN vendors to participate – Cisco, Spidercloud (private), Ruckus, Aruba
Networks, and others
— Interoperability with RAN and mobile core remains a big challenge
12

14. Key Highlights: Back Office IT
Network and Subscriber Analytics: Mobile Analytics

Deriving network data for sophisticated analysis is new and a very hot market likely to see
significant M&A. New area of study for WCP Research

Highly fragmented market with dozens of small and large suppliers but no obvious winners
— Likely leaders: Oracle, IBM, Ericsson, Cisco and JDSU
— Healthy venture investment in past 2 years
— Hot small players with valuable carrier wins
13