Rakuten, Qualcomm & Tech Mahindra
Back Altiostar in $114M Round
May 9, 2019
has closed a $114 million Series C round of financing with Rakuten
coming on board as an investor. In early 2018, Qualcomm Ventures LLC and
Tech Mahindra also participated in the C-round as investors. This
financing will be used to expand Altiostar's virtual RAN solution to
encompass 4G and 5G products allowing telecom operators to build
end-to-end web-scale cloud native networks.
In their recent report, Worldwide 5G Network Infrastructure Forecast,
2018–2022, IDC expects the largest percentage of overall investment to
be spent in the RAN portion of 5G networks, which is expected to grow at
a compound annual growth rate of 156.6% between 2018 and 2022.
Virtualization is seen by operators as a means to convert networks into
a software-defined infrastructure that can scale with the agility
required to meet this explosion of devices and applications.
"A round of this magnitude, backed by global technology leaders like
Rakuten, Qualcomm Ventures and Tech Mahindra, signifies the immense 5G
opportunity we have in front of us as well as the progress we have made
developing our virtualized RAN technology. Our unique open vRAN solution
is designed to improve the quality of experience, enhance spectral
efficiency and significantly reduce Total Cost of Ownership. With this
funding, and these strategic partners, we're excited about our ability
to deliver this breakthrough software defined solution to network
operators globally as they prepare for the 5G future," said Ashraf M.
Dahod, president and chief executive officer at Altiostar.
Concurrently with this financing round, Altiostar has agreements
solidifying its relationship with each of its strategic partners.
Rakuten which is deploying the Altiostar solution in their mobile
network and the companies are collaborating on the development of 5G
Qualcomm Technologies Inc., which has entered into a development
collaboration agreement with Altiostar.
Tech Mahindra has signed a value-added-reseller/system integrator
contract with Altiostar.
The Rakuten Group, headquartered in Japan, offers a variety of services
in e-commerce, fintech, communications and digital content. After being
granted spectrum by the Japanese government in early 2018, Rakuten plans
to launch an innovative, end-to-end fully virtualized cloud-native
mobile network in October 2019.
"Rakuten shares Altiostar's vision of open, virtualized radio access
networks: The Altiostar vRAN solution is one of the key enablers of the
end-to-end cloud-native, software-defined network we will launch in
Japan this year. Through our work with Altiostar, we aim to take the
lead in driving RAN virtualization and disrupting the mobile industry,"
said Tareq Amin, CTO of Rakuten Mobile, Inc.
Technologies is committed to not only developing 5G technologies to help
create new experiences and transform businesses and industries, but also
to investing in companies that align with our vision. Qualcomm Ventures'
investment in Altiostar reflects our confidence in the ability of
disaggregated RAN and vRAN architectures to transform mobile networks.
We look forward to collaborating on the development of new 5G product
solutions," said Brian Modoff, executive vice president, strategy and
M&A, Qualcomm Incorporated.
"Tech Mahindra's network service portfolio includes all aspects of
building, deploying and operating radio access networks. Tech Mahindra
has extended its regional services capabilities and global reach through
strategic acquisitions and has a truly global presence to help provide
scale to emerging technologies like Altiostar's open vRAN solution,"
said Manish Vyas, President, Communications, Media & Entertainment
Business, & CEO, Network Services, Tech Mahindra.