Press Release

Redback is Managing the Majority of DSL Subscribers in U.S.

Redback Also Has Won Six of the Top 10 Triple-Play Network Upgrades in the U.S. Since 2004
 
San Jose, CA, June 18, 2007 – Redback Networks, an Ericsson company that makes video-centric routers for 75 percent of the world’s largest triple-play networks, today announced it is managing 54 percent of all DSL subscribers now being upgraded for data, voice and video services in the U.S., according to a new compilation of Point Topic research and a Redback account analysis.

Since 2004, Redback has been selected by six of the top 10 U.S. carriers making next-generation decisions about triple-play networks. Redback’s SmartEdge® multiservice edge router platform helps carriers deliver a combination of broadband, phone and TV services to DSL subscribers. There are about 57.3 million broadband subscribers in the U.S.; DSL subscribers account for 25.7 million subscribers and Redback manages about 13 million DSL subscribers. The U.S. broadband market is growing 25+ percent per year.  

“Video and mobility are driving of one of largest, multi-billion routing markets in ten years,” said John Spiliotis, vice president of Americas sales and operations, Redback Networks. “In five years, we believe more than 2 billion wireless and wireline users will be upgraded video-centric broadband networks from 250 million broadband users today. Our U.S. market leadership positions Redback at the center of most DSL network upgrades. We believe Redback and Ericsson have a unique expertise in deploying and managing data, voice and video services over wired and wireless infrastructures.”

Fifteen of the top 20 telephone carriers worldwide already use SmartEdge router platform to deliver broadband, phone and video services to more than 50 million subscribers. These carriers include AT&T, British Telecom, China Telecom, China Netcom, ChungHwa Telecom (Taiwan), eAccess (Japan), France Telecom, Korea Telecom and Turk Telecom, among more than 200+ carriers worldwide.  

A STORY OF INNOVATION

The SmartEdge router is a story of innovation.  If you combined the services of broadband service provider, a phone company and a cable TV outlet, you would begin to understand the type of bandwidth, subscriber management and service capacity that the SmartEdge router can deliver.  The SmartEdge router platform is the only multi-access, multi-service edge router platform that uses a single network box to deliver any combination of data, voice, and video services across both wireline and wireless networks.

Redback has invested more than $400 million in its SmartEdge routing platform.  The SmartEdge completely eliminates the need for single service routers from other network routing companies.  What is driving multi-service routing today is directly analogous to when multiple application PCs eliminated the need for single application mainframes more than 25 years ago.  

About Redback Networks

An Ericsson company since January 2007 (NASDAQ: ERIC), Redback Networks helps manage triple-play services for 50 million subscribers and 15 of the top 20 telephone carriers worldwide.  Redback’s multi-service routing platform delivers next generation broadband services such as VoIP, IPTV, On-Demand Video, and on-line gaming.  Redback Networks has more than 500 carrier customers worldwide and is based in San Jose, CA.   For more information, visit www.redback.com.

Doug Wills (Media & Analysts)
Redback Networks
408-750-5038
dwills@redback.com

About Ericsson

Ericsson is shaping the future of Mobile and Broadband Internet communications through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication companies in the world.
Read more at http://www.ericsson.com

FOR FURTHER INFORMATION, PLEASE CONTACT
Ericsson Media Relations
Phone: +46 8 719 6992
E-mail: press.relations@ericsson.com

Redback and SmartEdge are registered trademarks of Redback Networks Inc.