Home Networking Drives Jungo Win

The Netanya, Israel-based CPE management software company Jungo Ltd. has won a $4 million deal with a yet-to-be named U.S. telco through an OEM partner, Light Reading has learned.

Jungo will provide the brains for its OEM partner’s home and small-office gateway products, which will be distributed to millions of the carrier customer's U.S. subscribers. The company told an Israeli news service that the carrier customer it was selling to had a market capitalization of $100 billion, which narrows the field down to either AT&T Inc. (NYSE: T) or Verizon Communications Inc. (NYSE: VZ).

Jungo says the deal is its largest to date, even though it announced a $5 million deal with NTT Communications Corp. (NYSE: NTT) around this time last year.

As ever, the telcos' desire to storm into home networking is evident in deals such as this one. Jungo claims to be the first to adopt the TR-69 protocol, which enables carriers to reach down into the home and control devices on the home LAN. (See Jungo Completes TR-069 and Is Netopia Buy-Out Bait?)

In addition to providing software for routing, firewall, and other features, Jungo's VP of marketing David Messina says the new carrier customer particularly likes the software's “application aware” QOS management. “From Layer 2 to Layer 7 QOS, it allows us to look at application levels and provide priority to things like IPTV," he says. In the absence of IPTV streams, Messina adds, the software automatically reallocates the bandwidth to other tasks like Web surfing or gaming.

Messina says his company now provides software for more than 50 residential gateway and other CPE products produced by 20 vendors. These vendors include Linksys -- part of Cisco Systems Inc. (Nasdaq: CSCO) -- Siemens AG (NYSE: SI; Frankfurt: SIE), Netgear Inc. (Nasdaq: NTGR), and U.S. Robotics Corp. CPEs built with Jungo software are now being distributed to the subscribers of five Tier 1 carriers –- two in Europe, two in America, and one in Asia.

Messina says Jungo is often called in when a silicon vendor wants to build a home gateway around its chipset, but doesn’t have the 12 to 18 months needed to assemble the development team to write the software.

Jungo is privately held. Its backers include Intel Capital , TeleSoft Partners , and Partech International . The company was founded in 1998 and currently employs 140 people.

— Mark Sullivan, Reporter, Light Reading

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