Broadcom Dramatically Expands Bandwidth for 4G Mobile Backhaul with Latest High Performance Switching Silicon

New Low Power Series Delivers Unparalleled Integration; Significantly Reduces Service Provider System & Operating Costs

Mar 28, 2011, 16:00 ET from Broadcom Corporation from ,BRCM Infrastructure & Networking

IRVINE, Calif., March 28, 2011 /PRNewswire/ -- Broadcom Corporation (Nasdaq: BRCM), a global leader in semiconductors for wired and wireless communications, today announced its latest StrataXGS® BCM56440 switch series, developed specifically to address the economic and performance challenges of service providers as they upgrade legacy mobile networks to manage the exponential growth in wireless data traffic and transition to 4G. Capable of delivering 1000x more bandwidth than legacy time-division multiplexing (TDM) based networks(1), the Broadcom®  BCM56440 series offers carriers a seamless migration path to Ethernet-class performance and advanced services in the mobile backhaul network.

The BCM56440 switch series provides the industry's highest integration in its class, combining the functionality of up to seven off-the-shelf application-specific standard parts (ASSPs) into one 40 nanometer (nm) CMOS device, dramatically lowering OEM bill-of-material (BOM) cost while reducing service provider capital expenditure (CAPEX) on mobile backhaul equipment by up to 50 percent.  In addition the BCM56440 eliminates the need for expensive, power-hungry network processing units (NPUs) and field programmable gate arrays (FPGAs), significantly reducing overall development costs and time to market.  

Enabling the Migration to Ethernet

Industry analysts predict that mobile data traffic will double each year through 2014 as the use of connected devices, such as smartphones and tablets, continue to grow at an astonishing rate(2).  Existing mobile backhaul networks, typically built on legacy TDM technology, are reaching capacity and carriers are scrambling to upgrade them to much more efficient Ethernet-based networking to manage the massive new bandwidth requirements.

Ethernet is expected to become the dominant carrier backhaul technology, approaching 100 percent usage in base stations by 2014. As a result, analyst firm Infonetics predicts mobile backhaul equipment expenditures will reach $8B(2) within the same time period. With today's announcement Broadcom is at the forefront in enabling this network transformation.

Market Drivers

  • Smartphone penetration is expected to double during the next four years(2).
  • Smartphones require 10x more bandwidth than a normal feature phone(4).
  • Tablet PC sales are forecast to reach 126 million units in 2015(3).
  • Tablet PCs generate 100 times more traffic than a feature phone(4).
  • Mobile connectivity to laptops and tablets over cellular networks is also increasing(4).
  • Current networks (typically built on legacy TDM) are costly and limited in bandwidth.
  • Analyst firm Infonetics projects the mobile backhaul equipment market to reach $8B by 2014(5).
  • Ethernet offers service provider's a 75 percent annual OPEX savings over legacy TDM networks.
  • The BCM56440 reduces service provider capital expenditure (CAPEX) on Mobile Backhaul Equipment by up to 50 percent.
  • Packet data in the mobile backhaul is growing at 100 percent per year due to the adoption of new 4G wireless technologies including LTE, HSPA+, IMT-Advanced and WiMAX.

Highlights/Key Facts:

  • The BCM56440 switch series is based on Broadcom's industry-leading Ethernet Edge switch for carrier access networks.
    • Provides cost-effective, seamless transition for legacy TDM networks.
    • Ideally suited for 3G & 4G mobile backhaul transport.
    • Delivers unparalleled integration of features and functions, including switching, traffic management, timing, circuit emulation services, and memory.
    • Provides complete solution for all parts of the mobile backhaul network, from small to very large port counts.
    • Represents Broadcom' s seventh generation StrataXGS series – innovation honed over time.
    • Embedded deep buffer & hierarchical Quality of Service (QoS) in a single 40 nanometer (nm) CMOS device.
    • Provides a complete 1588v2 solution for boundary clock, ordinary clock and transparent clock.
    • Features energy conscious, low-power 40nm fabric for fanless operation.
    • Handles L2 switching, L3 routing, metro VPN tunneling and access control lists.
    • Provides seamless support for VPLS, VPWS, MPLS-TP, PBB and PBB-TE tunneling.
    • Supports Ethernet and MPLS OAM  in hardware to enable a complete host CPU offload.
    • Supports synchronous Ethernet clock synchronization supported on  all ports
  • The BCM56440 switch series is now sampling with production volume expected in calendar Q4 2011.

Quotes:

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

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

"We see no letup in the Ethernet mobile backhaul market with about 150 operators now in 2011 deploying a single IP-Ethernet backhaul to manage the explosive growth in mobile data traffic. The  4G build outs, HSPA+ and LTE in particular, are causing this huge expansion in bandwidth requirements thus driving continued growth in the mobile backhaul equipment market over the next five years."

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

"Broadcom's commitment and investment in delivering next-generation service provider technology is enabling the transformation of the mobile network. Our latest  StrataXGS switch solution continues our legacy of delivering the industry's broadest and most interoperable standards-based edge-to-core portfolio, all working together to enable high reliability and superior quality of service on an Ethernet infrastructure.."

(1) Ethernet versus time-division multiplexing (TDM) based networks

(2) iSuppli, 2010

(3) Parks Associates 2011

(4) Mobile Access 2010

(5) Infonetics Mobile Backhaul Forecast, 4Q10

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About Broadcom

Broadcom Corporation is a prominent technology innovator and global leader in semiconductors for wired and wireless communications.  Broadcom products enable the delivery of voice, video, data and multimedia to and throughout the home, the office and the mobile environment.  We provide the industry's broadest portfolio of state-of-the-art system-on-a-chip and software solutions to manufacturers of computing and networking equipment, digital entertainment and broadband access products, and mobile devices.  These solutions support our core mission: Connecting everything®.

Broadcom, one of the world's largest fabless communications semiconductor companies, with 2010 revenue of $6.82 billion, holds more than 4,800 U.S. and 2,000 foreign patents, and has more than 7,800 additional pending patent applications, and one of the broadest intellectual property portfolios addressing both wired and wireless transmission of voice, video, data and multimedia.

A FORTUNE 500® company, Broadcom is headquartered in Irvine, Calif., and has offices and research facilities in North America, Asia and Europe.  Broadcom may be contacted at +1.949.926.5000 or at http://www.broadcom.com.

Cautions regarding Forward-Looking Statements:

All statements included or incorporated by reference in this release, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on our current expectations, estimates and projections about our industry and business, management's beliefs, and certain assumptions made by us, all of which are subject to change.  Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," similar expressions, and variations or negatives of these words.  Examples of such forward-looking statements include, but are not limited to, the demand for mobile backhaul network upgrades, our position in that space and the timing of volume production for StrataXGS solutions.  These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement.

Important factors that may cause such a difference for Broadcom in connection with its StrataXGS BCM56440 solution include, but are not limited to:

  • The rate at which our present and future customers and end-users adopt Broadcom's technologies and products in the mobile backhaul space;
  • Delays in the adoption and acceptance of Ethernet in the mobile backhaul space;
  • The timing, rescheduling or cancellation of significant customer orders and our ability, as well as the ability of our customers, to manage inventory; and
  • Competitive pressures and other factors such as the qualification, availability and pricing of competing products and technologies and the resulting effects on sales and pricing of our products.

Additional factors that may cause Broadcom's actual results to differ materially from those expressed in forward-looking statements include, but are not limited to the list that can be found at http://www.broadcom.com/press/additional_risk_factors/Q42010.php.

Our Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other Securities and Exchange Commission filings discuss the foregoing risks as well as other important risk factors that could contribute to such differences or otherwise affect our business, results of operations and financial condition.  The forward-looking statements in this release speak only as of this date. We undertake no obligation to revise or update publicly any forward-looking statement, except as required by law.

Broadcom®, the pulse logo, Connecting everything®, and the Connecting everything logo and StrataXGS® are among the trademarks of Broadcom Corporation and/or its affiliates in the United States. Any other trademarks or trade names mentioned are the property of their respective owners.

Contacts

Trade Press Tamara Snowden Senior Manager, Corporate Communications 408-922-6505 tamaras@broadcom.com

Investor Relations Chris Zegarelli Director, Investor Relations 949-926-7567 czegarel@broadcom.com

SOURCE Broadcom Corporation; BRCM Infrastructure & Networking



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