Juniper's J20 Is Jumping

CANNES, France -- 3GSM Congress -- Juniper Networks Inc. (Nasdaq: JNPR) says it now has over 25 customers for its J20 GPRS gateway service node (GGSN) product, which was jointly developed with Ericsson AB (Nasdaq: ERICY) and is being marketed and sold by the Swedish vendor (see Juniper Unveils ‘Wireless Router’).

The J20, which was launched at last year's Cannes bash, is being used by Cingular Wireless, Hutchison (Australia) Limited, and Telstra Corp., among others, according to Neik van Bemmel, director of corporate communications, EMEA. "It's actually a good mix of Asia, Europe, and the U.S.," he told Light Reading's sister site, Unstrung.

Juniper is not keen to talk about the sort of revenues that it sees from sales of the J20. However, last time we spoke to analysts about this they agreed that the wireless router is probably a nice little earner – albeit with the emphasis on little – making $5 million and counting per quarter (see Juniper's GGSN Gamble?).

The market for wireless packet edge products is analyzed by the recent Wireless Oracle report, "Wireless Routers: A Market Waiting to Happen?" The report assesses the leading GGSN and PDSN products from the major, publicly-listed infrastructure vendors and a host of startup players. It includes exclusive market forecast data. To read the rest of the story, including the status of Juniper's relationships with Ericsson and Siemens, visit our sister site Unstrung.

Editor’s note: Light Reading is not affiliated with Oracle Corporation.

Steve Saunders 12/5/2012 | 12:37:11 AM
re: Juniper's J20 Is Jumping What is Cisco's solution for this market?

How it is selling, compared to other players? (including Juniper)
marionetteworks 12/5/2012 | 12:37:10 AM
re: Juniper's J20 Is Jumping What is Cisco's solution for this market?

How it is selling, compared to other players? (including Juniper)

Shouldn't you be telling us?
bgp-junkie 12/5/2012 | 12:37:09 AM
re: Juniper's J20 Is Jumping Unfortunately, Cisco is in this market. Basically, Cisco added some additional functionality within IOS (12.2 I believe) to enable their routers to function as a GGSN. From my view, they do not have market share within the GGSN market and very few wireless carriers utilize their solution. Known and incumbent wireless vendors such as Nokia typically sell the most GGSNs…
klpd 12/5/2012 | 12:37:05 AM
re: Juniper's J20 Is Jumping can somebody comment on the market size for ggsns ?

Last I heard, AWS needed only a couple of them for the whole US.

Why would CISCO get into such a small market ?
arak 12/5/2012 | 12:37:00 AM
re: Juniper's J20 Is Jumping Seteve Saunders wrote:
>What is Cisco's solution for this market?
Cisco uses the 7206VXR with a special IOS code release for GGSN purposes. The same goes for PDSN (CDMA 1X) too.

>How it is selling, compared to other players? (including Juniper)
Cisco has a 20%-30% worldwide GGSN market share due to its tieup with Motorola for GPRS solutions. Juniper probably has more since it has tieups with most of the other majors.

My question to Steve.
What do you think about the prospects of Watercove, Megisto, Tahoe and Starent products ? Which among these is the better one for both GGSN and PDSN functionality ?
digerato 12/5/2012 | 12:36:54 AM
re: Juniper's J20 Is Jumping Having done a business case for getting into the GGSN market at an equipment vendor a few years ago, I can take a guess at why Juniper isn't releasing revenue figures -- the market is too small.

The problems are twofold:

1) A large wireless carrier doesn't need many GGSNs, and they don't cost very much. I looked at the take-up of GSM EDGE services in Europe and Asia, and did a wildly optimistic subscriber data useage projection for a wireless carrier of the size of AT&T Wireless. They needed less than 10 GGSNs -- there's just not that much packet data generated by the phones. The number of GGSNs is only going down as Moore's law marches on and they gain more processing power.

A typical Cisco 7206VXR-based GGSN was priced at about $100K, after standard discount. It's the basic chassis with very few interfaces and a $40K (list) software option. So, you're looking at a $1m sale (tops) to a big carrier, if you're lucky. There are probably only 20 carriers of this size world-wide. But why would you not be lucky? Well...

2) The existing wireless switching incumbents were both incorporating "bundled" GGSNs into MSC (Mobile Switching Center) EDGE upgrades *and* avoiding putting a suitable interface on their MSCs that would allow it to be connected to a 3rd party GGSN. They just didn't make the interface available, or made it available but extremely expensive, so the carrier balked at buying it.

I am sure that Juniper sold as many as 25 of the J20 only because of the Ericsson partnership -- Ericsson is the market share leader in GSM MSCs.

For a start-up (Tahoe et al.), it's incredibly difficult to make a sale without an MSC vendor relationship, and MSC vendors don't need a start-up partner, they need a big company with global reach and good support. Cisco has Motorola, who unfortunately (for Cisco) are not a big fish in the GSM MSC market.

The question to ask Juniper is "what's the ASP on the J20?". I doubt they'll tell you, but without that figure a "we sold 25 of these, isn't that great?" story doesn't mean much.

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