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Oracle snaps up Tekelec, strengthens policy control business

Second big acquisition, after Acme Packet, in equipment segment this year
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Oracle made another move to bolster its telecom equipment portfolio, reaching a deal Monday to acquire Tekelec for an undisclosed sum.

When the deal closes, Oracle will gain a set of network signaling, policy control, and subscriber data management solutions and a roster of 300 service provider customers in over 100 countries.

One area that will be of particular value is Tekelec's network signaling (Diameter and SS7), policy control and subscriber data management solutions. These solutions will broaden Oracle's current set of OSS, service delivery platforms that it can sell to service providers looking to monetize their network resources.

Oracle's deal to acquire Tekelec marks a company trend where it is looking for ways to break gain a better foothold in the service provider market.

Last month, Oracle struck a $2.1 billion deal to acquire session border controller vendor Acme Packet. Through that acquisition, Oracle immediately gained a larger set of technologies including SBCs, which helps service providers and enterprises secure packet traffic, particularly SIP, on their networks and modify the streams of call control (signaling) data involved in each call.

"This acquisition further extends Oracle's move into the heart of telecom networks," said Dana Cooperson, principal analyst at Ovum. "Tekelec will extend Oracle Communication's network control capabilities, which it also bolstered with its February announcement to acquire Acme Packet. Tekelec also focuses on extending its service control solutions, adding policy control and subscriber data management to its list of capabilities."

Cooperson added that "Oracle has in the past partnered to provide these capabilities, but by bringing them in-house it will have more opportunity to shape the roadmap and combine the capabilities in a more tightly-coupled solution."

While Oracle's success in the policy management market segment is far from certain, it's growing. Infonetics forecast in September 2012 that the worldwide policy management market segment will top $1.9 billion by 2016.

For more:
- see the release

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