Does the evolved packet core require a brand new type of equipment?
Rubino: EPC equipment is brand new for LTE, but the footnote here is that it uses LTE standards. Still, a lot of vendors are taking existing core routers and modifying the software slightly or adding new cards to turn them into EPC equipment. So it's doable, but the other approach is to build something brand spanking new. That's what Starent was doing when it was acquired by Cisco. Starent was in EPC equipment and had relationships with a lot of other vendors that were planning to OEM or use them. Cisco came in and scooped it up. With its IP expertise and this piece of equipment built specifically for EPC, Cisco has a big advantage.
Have the other major equipment vendors done something similar to play in the evolved packet core?
Rubino: Cisco did an acquisition, and others are leveraging existing technology. Juniper is retrofitting. Juniper announced Project Falcon, which is taking its existing core router and modifying it slightly so it can be equivalent to work within the evolved packet core. Alcatel-Lucent is modifying an existing core router, adding some cards to it and adding some hardware. Ericsson and Nokia Siemens are also leveraging existing technology.
Tellabs acquired mobile packet core company WiChorus and is building new equipment. It can leverage that with some existing core technology as well and is able to mix all that together. Tellabs initially focused on Wimax but was able to modify this for LTE as well.
Are startups playing a major role in LTE evolved packet core technology? And if so, are acquisitions on the horizon?
Rubino: There's a lot of work going on with policy controllers called PCRF (policy and charging rules function) for the EPC that do a lot in terms of deciding whether a customer can have access to the Internet or access to certain services within the carrier.
Alcatel-Lucent makes its own, but a lot of little companies are out there making their own as well. There is potential for some of those little PCRF companies to get acquired.
The thing that will decide whether they get acquired is whether their products have already been trialed in networks. In terms of differentiating one company over the other, there probably isn't much to say. Big players don't play here so much.