Hitachi Acquires Next-Generation Mobile Communication Systems from Nortel Networks

Hitachi, Ltd. announced it has acquired next generation
packet core network components, including software products that
support the transfer of data over existing wireless networks and the
next generation of wireless communications technology, from Nortel
Networks Limited, Nortel Networks Inc. and Nortel Networks Technology
Corporation for a total of US$10 million. This acquisition relates to
Hitachi’s development of Evolved Packet Core (EPC)*1 for Long Term Evolution (LTE)
network equipment. LTE is a new next-generation mobile communications
system that provides high performance air interface (100Mbit/s) for
cellular mobile phones.

The assets include the Next Generation Serving GPRS Support Node on Advance Telecommuting Architecture (ATCA), the Next Generation Gateway GPRS Support Node on ATCA, the Mobility Manager Element
on ATCA, the AGW Serving Gateway on ATCA, the AGW Packet Data Gateway
on ATCA, and the Network Element Manager associated with each, as well
as relevant non-patent intellectual property, equipment, other related
tangible assets, a non-exclusive license of certain relevant patents
and other intellectual property.

With demand in the LTE market expected to expand worldwide going
forward, Hitachi has decided to conduct this acquisition in order to
quickly enter the LTE field on a global basis.

Demand continues to grow for broadband-intensive communications in the
mobile communications field, including mobile phones and data card
devices for PCs. End user demand is driven by rapidly multiplying
applications, including growing needs for large-capacity data-file
transfers, music and video streaming services, and online games. In
response to these needs, LTE has been undergoing standardization by 3GPP, a standard-setting body for mobile communication systems. In March 2009, the LTE standard was established.

Key elements of the Hitachi EPC solution are the associated Mobility Management Entity (MME), Serving Gateway and PDN Gateway.
This product offering can also deliver the ability to support 2G and 3G
subscribers with integrated Serving GPRS Support Node (SGSN) and
Gateway GPRS Support Node (GGSN) functionality. This capability will
facilitate the economical migration to 4G technology.

In December 2008, Hitachi was selected as a vendor of core LTE network
equipment by KDDI Corporation, and has been moving forward with
development activities. In May 2009, Hitachi established a new Mobile
Development Center within its U.S. subsidiary Hitachi Communication
Technologies America, Inc. to reinforce its design and development
activities in the area of next-generation mobile communication systems.

Note:*1 EPC stands for Evolved Packet Core and is network system of LTE
which consist of Mobility Management Entity (MME), Serving Gateway and
PDN Gateway.

*2 LTE stands for Long Term Evolution and is a high-speed data communications standard for mobile phones.

*3 Serving GPRS Support Node (SGSN) and Gateway GPRS Support Node
(GGSN) stand for packet network nodes within the 2nd and 3rd generation
of mobile communication network. SGSN make connection to mobile access
network, and GGSN make connection to outside packet network like
internet or enterprise network.

*4 MME stands for Mobility Management Entity and is a control node for
mobility management, including terminal location registration, paging
and handover between base stations.

*5 3GPP stands for 3rd Generation Partnership Project, and is a
standardization project for 3G mobile communications systems.

*6 Serving Gateway stands for a node with functionality for relaying
user data to mobile terminals executing LTE access and 3G access.

*7 PDN Gateway stands for a node connecting the core network to an IP
multimedia subsystem (IMS) for enabling multimedia applications with
IP, or to an external network such as an Internet service provider
(ISP) or enterprise network.


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