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Broadcom Optimises New Chip for $8B Mobile Backhaul Market

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Announcement Corporate

Broadcom Corporation (NASDAQ: BRCM), a global leader in semiconductors for wired and wireless communications, today announced its latest StrataXGS® high performance switch solution, designed specifically to manage the exponential growth in wireless data traffic and carrier transition to 4G mobile networks. Mobile backhaul expenditures are expected to reach $8 billion by 20145.

With the striking rise in the number of smartphone and tablet users, existing backhaul networks are struggling to support the increasing requirements of high-bandwidth mobile video and data services. Leading carriers around the world have embarked on an aggressive strategy to upgrade their mobile networks in order to manage the explosive growth in traffic.

 

Broadcom’s latest high performance StrataXGS chip is capable of delivering 1000x more bandwidth1, allowing carriers to easily upgrade legacy backhaul networks and transition to 4G.

Highlights/Key Facts:

* Smartphone penetration is expected to double during the next four years2.

* Smartphones require 10x more bandwidth than a normal feature phone4.

* Tablet PC sales are forecasted to reach 126 million units in 20153.

* Tablet PCs generate 100 times more traffic than a feature phone4.

* India is expected to cross the 750 million mobile subscriber mark in 2011.

* Smartphone sales in India were expected to reach 5.96 million units in 2010.

* Analyst firm Infonetics predicts global mobile backhaul expenditures to reach $8B billion by 20145.

* Ethernet is expected to be the dominant carrier technology by 2014, approaching 100 percent usage in mobile network base stations5.

* The Broadcom® StrataXGS BCM56440 switch series provides a seamless migration path to Ethernet class performance in the mobile backhaul, delivering 1000x more bandwidth.

* Devices are now sampling with production volume expected in calendar Q4 2011.

Rajiv Kapur, Senior Director, India Business Development, Broadcom Corporation

“These are exciting times for India with the imminent roll out of 3G and 4G, promising to bring with it a host of benefits that can enhance the quality of life. This reinforces the need for a robust backhaul network. Our latest StrataXGS solution will help to pave the way to delivering crucial solutions, such as Tele-medicine and educational content to remote corners of the country”

Martin Lund, Senior Vice President and General Manager, Network Switch, Broadcom Corporation

“The wireless market today is incredibly competitive, and carriers are under a great deal of pressure to deliver the best service in the industry. Our latest switch solution allows carriers to seamlessly migrate existing networks to 4G, with the capability of delivering much higher bandwidth and faster connectivity to the growing number of smartphone and tablet users – resulting in a much more satisfying end user experience.”

Michael Howard, Principal Analyst, Carrier & Data Center Networks Analyst, Infonetics

“With the emergence of 4G, the last mile backhaul is critical because poor performance in the backhaul creates bottlenecks that limit growth and diminish quality of service. We anticipate mobile operator’s spending on the mobile backhaul to grow substantially over the next several years as they develop an efficient and effective last mile backhaul. We are seeing the emergence of the Ethernet protocol as the most optimal solution to address the capacity and economic issues facing carriers today.”

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First Published: Mar 29 2011 | 5:51 PM IST

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