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Genband Splashes Out for BayPackets

Phil Harvey
News Analysis
Phil Harvey
8/30/2006
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With two acquisitions in 12 months, Genband Inc. is signaling that it doesn't intend to stay small forever. Today the former one-product wonder announced it is acquiring privately-held BayPackets Inc. for an undisclosed sum.

BayPackets, founded in 2000, is headquartered in Fremont, Calif. with facilities in New Delhi, India. The company has 91 employees, 69 of which are in India. It had raised $57.8 million in venture backing during its lifetime as an independent company.

BayPackets’ founder Sanjeev Chawla will become Genband's CTO and board member Alex Guira will join Genband's board. The rest of the BayPackets management team haven't as of yet announced their new jobs or departure dates.

BayPackets, known as a scrappy service delivery platform competitor, helped run a host of IP-based applications for wireless carriers, wireline operators, and broadband providers. The acquisition gives Genband, which started as a media gateway vendor, a couple more clubs for its IMS golf bag –- essentially giving it everything except a session border controller for next generation voice networks.

From Heavy Reading's IMS report last year, here's a summary of BayPackets' value to Genband, which wants to broaden its reach in IMS deployments:

The company has a wide set of partners, including strategic investors Intel and Lucent. Lucent signed a resale agreement with BayPackets in May under which Lucent will resell BayPackets SDPs and business VOIP applications as part of its own IMS solution. Other partners include IBM, Siemens, and Tekelec. BayPackets' Parlay/OSA gateway can be deployed in IBM BladeCenters and Sun Netra servers, among other platforms.

Bay sees its strengths as its ability to handle multiple protocols (SIP, Camel, IN, etc.), its highly scaleable servers, and its integration into a back-office environment.


With BayPackets in its bag, Genband will be able to sell wireless carriers service delivery platform-powered applications like prepaid and unified messaging solutions. For cable operators, the BayPackets deal will help Genband pursue the burgeoning cable VOIP market, which it first took aim at earlier this year with the acquisition of Menlo Park, Calif. softswitch vendor Syndeo Corp.

With the assets of Syndeo Corp. under their belts, Genband officials introduced two new IMS architecture and multimedia products this past spring, including the C2 signaling controller and S4 applications server. (See Genband on the Run.)

Thanks in part to its Syndeo acquisition, Genband now counts RCN Corp. , Canadian MSO Vidéotron Telecom Ltd. , and large Spanish MSO Cabovisão S.A. as prime cable customers. It also claims some larger, undisclosed U.S. MSOs, enabling its voice products to serve about 500,000 cable telephony subscribers worldwide.

Genband estimates its revenues to be about $33 million this year, growing to about $60 million next year.

Now Genband says it will put the BayPacket's suite of applications into a product called the M5 Multimedia Applications Server, which will give it signaling and services support across TDM and VOIP networks.

"This acquisition fundamentally changes us into a multi-product company with strong international traction," says Genband CEO Charlie Vogt. "This is a big step toward our corporate goals and will position us nicely as a strategic supplier of IMS solutions."

And, even though Genband's acquisitions are helping it broaden out, its original product, the G6 Universal Media Gateway, is getting a boost inside Verizon Communications Inc. (NYSE: VZ) as of late. The carrier this week confirmed that Alcatel (NYSE: ALA; Paris: CGEP:PA), Verizon's primary GPON technology supplier, is reselling the G6 as part of its voice integration solution. (See Alcatel Joins Verizon PON Party.)

In addition to Verizon, Genband's technology and its acquisitions have added several new names to its customer roster including Deutsche Telekom AG (NYSE: DT), SoftBank BB Corp. , and the long distance network of AT&T Inc. (NYSE: T).

— Phil Harvey, News Editor, Light Reading

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optodoofus
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optodoofus,
User Rank: Light Beer
12/5/2012 | 3:42:53 AM
re: Genband Splashes Out for BayPackets
I doubt that Lucent, Nortel and Ericsson are losing much sleep over this. Putting two niche players together will not make GenBand a contender for the large incumbent carriers' business. They don't have the scale or integration resources necessary to compete with the big boys. This is not a knock on their technology, but the best technology does not always win (as much as we would like to believe that it does).

Optodoofus
mu-law
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mu-law,
User Rank: Light Beer
12/5/2012 | 3:42:52 AM
re: Genband Splashes Out for BayPackets
"I doubt that Lucent, Nortel and Ericsson are losing much sleep over this."

Agreed. But then its not obvious what they do lose sleep over.

"They don't have the scale or integration resources necessary to compete with the big boys."

This article in fact seems to furnish a counterexample, citing AT&T, DT, SBB et al as customers GenBand inherits through this transaction?

Certain well known equipment vendors have shown they can secure contracts, at the same time demonstrating a conspicuous lack of product or execution track record on many of the more interesting IMS elements.

At the same time, the carriers that sign with them typically don't loose sleep over this either, since they all know better than to leave their fate in the hands of their suppliers.

The big carriers can and do find other vendors that know the recipe even if they have no intentions of awarding a contract to a small fry... they simply compel the supliers that they *will* do business with to respond accordingly.
DCITDave
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DCITDave,
User Rank: Light Beer
12/5/2012 | 3:42:51 AM
re: Genband Splashes Out for BayPackets
If Genband hits $100M in revenue next year, do you think they'll be an IPO candidate?
ThurstonHowell3rd
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ThurstonHowell3rd,
User Rank: Light Beer
12/5/2012 | 3:42:49 AM
re: Genband Splashes Out for BayPackets
Right after pigs learn to fly Phil...
Michael Harris
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Michael Harris,
User Rank: Light Beer
12/5/2012 | 3:42:48 AM
re: Genband Splashes Out for BayPackets
For cable operators, the BayPackets deal will help Genband pursue the burgeoning cable VOIP market, which it first took aim at earlier this year with the acquisition of Menlo Park, Calif. softswitch vendor Syndeo Corp.

Genband has pursued the MSO market for years with its G6 gateway, nothing new. Syndeo was a fire sale. Their gained zero MSO traction, even though the company had major cable operator investors. Cisco, Nortel, Siemens and CedarPoint dominate the cable VoIP softswitch market today. However, that is for PacketCable NCS solutions (MGCP based). Genband will likely be pitching SIP, IMS and PacketCable Release 2 with the Syndeo and Bay Packets combo, but it will be an uphill battle versus the big dogs.
DCITDave
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DCITDave,
User Rank: Light Beer
12/5/2012 | 3:42:47 AM
re: Genband Splashes Out for BayPackets
Vonage went public.

Oink,
ph
eyesright
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eyesright,
User Rank: Light Beer
12/5/2012 | 3:42:46 AM
re: Genband Splashes Out for BayPackets
Siemens and dominate.

Now there are two words you rarely hear together, especially in North America.
ThurstonHowell3rd
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ThurstonHowell3rd,
User Rank: Light Beer
12/5/2012 | 3:42:45 AM
re: Genband Splashes Out for BayPackets
Or anywhere else for that matter
ThurstonHowell3rd
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ThurstonHowell3rd,
User Rank: Light Beer
12/5/2012 | 3:42:45 AM
re: Genband Splashes Out for BayPackets
Oh please! Vonage went public... what does THAT tell you... you know the old line Gilligan my boy..." A fool and his money... is a VC in Telecom!!"

LOL !!! Now fetch me another drink and don't forget the umbrella!!
Michael Harris
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Michael Harris,
User Rank: Light Beer
12/5/2012 | 3:42:45 AM
re: Genband Splashes Out for BayPackets
Siemens and dominate.
Now there are two words you rarely hear together, especially in North America


Yah, daht is true. Babelfish says the Deutsch term is "vorherrsch sie". ;)
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