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Tekelec extends policy management to 8 countries

by david.nunes

MORRISVILLE, N.C. — October 4, 2010 Tekelec (NASDAQ: TKLC), the broadband data management company, has won two multi-national, Tier One 3G mobile service provider deals for its industry-leading Camiant Policy Management solution in Europe and the Caribbean and Latin America (CALA) region.  The deals extend Tekelec’s Policy and Charging Rules Function (PCRF) to eight new countries in Central and South America: Argentina, Bolivia, Chile, Colombia, El Salvador, Guatemala, Honduras and Paraguay.  A Tier One Brazilian mobile operator also selected the solution earlier this year.

Both service providers are headquartered in Europe. Tekelec’s policy management had previously been deployed by other customers in France, Germany, Hungary, Portugal, Spain, Turkey and the U.K.

The new wins span 11 3G operators, accelerating the mobile customer base for Tekelec’s PCRF technology, which Tekelec gained in May through the acquisition of Camiant. Tekelec now counts 22 mobile operators around the globe as policy customers, including Verizon Wireless and Vodafone, with more than 250 million subscribers. The planned launch of the Verizon Wireless LTE network later this year is expected to further accelerate Tekelec’s reach. The Latin America customer wins are scheduled for implementation in 2010, bringing total global deployments to 42 service providers across GSM, CDMA, fixed, cable and soon-to-be-launched LTE networks in 25 countries by year-end.

“By using policy to help control traffic from the earliest stages of their 3G deployments, CALA operators are proactively addressing subscribers’ needs for network flexibility, tiered pricing plans and fair usage policies,” said Susie Kim Riley, Tekelec’s chief marketing officer. “In addition, the multi-country operators recognize the need for a solution that operates in a multi-vendor environment and is supported by a company with a proven and trusted regional support structure.”

According to Terry Norman, Principal Analyst at industry research and consultancy firm Analysys Mason, global traffic from mobile connections in the Caribbean and Latin America region will increase nearly eight-fold from 2010 to 2015, from 16 petabytes per month to 125 petabytes per month.

Tekelec’s Camiant Policy Management solution gives mobile service providers dynamic abilities to manage network resources and subscribers’ services to lower costs and create new revenue streams associated with the mobile data explosion.  The solution adapts to any network environment by applying operator-defined rules that respond to changing network conditions in real time.  The most common uses cases are fair usage policies, congestion management, voice and video services, and data tiering.

For more information, Tekelec has a free white paper available, “Opportunity in the Air: Congestion Management and the Mobile Broadband Revolution” that describes the challenges and solutions to manage network congestion and align revenue contributions with traffic consumption.

About Tekelec

Tekelec, the broadband data management company, enables billions of people and devices to surf, talk, and text. Our solutions allow service providers to give consumers a consistent and tailored broadband experience. We handle network complexity with a portfolio that manages and capitalizes on the exponential growth in data applications and traffic. Tekelec has more than 25 offices around the world serving customers in more than 100 countries.

Forward-Looking Statements

Certain statements made in this press release are forward-looking, reflect the Company’s current intent, belief or expectations and involve certain risks and uncertainties. The Company’s actual future performance may differ materially from such expectations as a result of important risk factors, which include, in addition to those identified in the Company’s 2009 Form 10-K, 2010 First and Second Quarter Forms 10-Q and its other filings with the Securities and Exchange Commission, our ability to negotiate reasonable terms and conditions in and obtain final execution of customer contracts, our ability to deliver products on a timely basis, the current or further detrimental changes in general economic, social, or political conditions in the countries in which we operate including the impact of credit availability and currency fluctuations on overall capital spending by our customers, our ability to gain the benefits we expect from the acquisitions of Blueslice and Camiant, risks related to our international sales, markets and operations, including among others, import regulations, limited intellectual property protection, including protection of our software source code, increased costs and potential liabilities related to compliance with current and future security provisions in customer contracts and regulations, and security restrictions and access requirements imposed by governments, including in particular the government of India, the timeliness and functional competitiveness of our product releases, the timing and size of any decline in demand for our SS7-based products, the timing and size of any increase in demand for our performance management, SIP, Diameter, policy and subscriber database products, the risk of infringing on, and litigating with others regarding their intellectual property rights, the timing of our recognition of revenues, the extent to which any customer outsourcing to our competitors or supplier consolidation increases the influence of competitors on our customers’ purchases, our ability to compete with other manufacturers that have lower cost bases than ours, are partially supported by foreign governments, and/or employ unfair trade practices, our ability to maintain OEM, partner, reseller, and vendor support and supply relationships, and changes in the market price of the Company’s common stock. The Company undertakes no obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise.

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