Sandvine Concludes Purchase Agreement With Teclo Networks AG, Gains Next Generation TCP Acceleration Solution
Waterloo, Canada; February 29, 2016 – Sandvine, (TSX:SVC) a leading provider of intelligent network policy control solutions for fixed and mobile operators, today announced that it has entered into an agreement to purchase the business of Teclo Networks AG (“Teclo”), a Switzerland-based company that offers a TCP Acceleration solution to mobile operators, including satellite technologies. The solution dramatically enhances the quality of experience for mobile Internet subscribers on 2G to 5G networks, reduces the risk of subscriber churn and extends network life. The transaction is subject to customary closing conditions including the approval by Teclo’s shareholders. The transaction is expected to close in March. Financial details were not disclosed.
With the acquisition, Sandvine launches the new Sandvine TCP Accelerator product as part of its Traffic Optimization portfolio. TCP traffic accounts for 90-95% of all Internet traffic, and its congestion controls were historically designed for fixed line networks and can create significant inefficiencies in today’s mobile networks. With Sandvine TCP Accelerator, mobile network operators can expect significant increases in TCP traffic throughput (speed) and meaningful decreases in latency (traffic delays), including for encrypted traffic. This increased performance significantly improves the quality of experience for mobile Internet subscribers, resulting in a “snappy” web browsing experience, and reduces the risk of subscriber churn.
“While all the talk is about 4G and 5G, people forget that the dominant mobile Internet access type globally remains 2G and 3G. TCP Acceleration is a proven, regulatory-neutral approach to improving subscriber satisfaction and extending the life of mobile networks,” said Don Bowman, Sandvine’s Chief Technology Officer. “TCP Acceleration works on encrypted traffic, unlike video optimization, content caching and certain other specialized optimization techniques. So while we have seen other companies exit the Traffic Optimization space, this is another example of how Sandvine is embracing the encryption trend to help operators continue to manage their networks in a world where most traffic is already encrypted.”
Some specific benefits of the Sandvine TCP Accelerator include:
- Protects the network from bursty traffic and bufferbloat – a notable issue in 4G networks
- Decreased round trip times while achieving full utilization of available Radio Access Network (RAN) resources
- Removes session slowdown from RAN latency/congestion at the TCP layer including on MOCN (Multi-Operation Core Networks)
- Effective acceleration of encrypted traffic
- Reduces TCP retransmissions and gets the first byte out quicker when restarting operations after connections are reestablished
- Accelerates both uploads and downloads from mobile devices
- The market’s only fully transparent solution, i.e., does not introduce the inherent reliability and efficiency issues of competing proxy-based solutions
“There are a number of significant near-term opportunities for TCP Acceleration and our product offers significant technical advantages,” said Jane Walerud, CEO of Teclo. “Mobile operators have represented Sandvine’s largest market for years and the company has an extensive customer base. Together, we are in a much better position to take advantage of an opportunity that has a compelling value proposition to mobile operators.”
Teclo has 10 customers using its products today, including 9 that are new to Sandvine.
The TCP Accelerator product will be priced as a term-based license.
Sandvine’s network policy control solutions add intelligence to fixed, mobile and converged communications service provider networks to enable services that can increase revenue and reduce network costs. Powered by Sandvine’s Policy Engine and SandScript policy language, Sandvine’s networking equipment performs end-to-end policy control functions including traffic classification, and policy decision and enforcement across the data, control and business planes. Sandvine’s products provide actionable business insight, the ability to deploy new subscriber services and tools to optimize traffic while enhancing subscriber Internet quality of experience.
Sandvine’s network policy control solutions are deployed in more than 250 networks in over 90 countries, serving hundreds of millions of data subscribers worldwide, www.sandvine.com.
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