The Mobile Internet Report Key Themes*

Advanced Mobile Packet Core Gateway Market
Should See Exponential Growth
Starent Networks – Acquired by Cisco at 5.5x EV /
2010E Revenue Multiple
WiChorus – Acquired by Tellabs at 6.5x
EV / 2010E* Revenue Multiple
Mobile packet core technologies become very important in 3G and 4G, granting carriers greater control
of the data traffic flowing through their network through the use of the following:
Quality of Service, Traffic Shaping and Prioritization, Deep Packet Inspection, WAN Acceleration
Push Services such as automatic daily news and video feeds are inevitable and can be pushed
themselves to less sensitive times for the network.
466
* WiChorus revenue refers to shipment volume, due to accounting rules that force them to recognize revenue over time.
Source: Starent, WiChorus, Ehud Gelblum, Morgan Stanley Research.