Starent Networks Q1 2009 Earnings Call Transcript

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2009-04-24 14:54:10.0

Tags: Starent Networks Corp., U.S. Bancorp Piper Jaffray Inc., Verizon Communications Inc., Call Transcript, Earnings, Carrier, LTE, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) And your first question comes from the line of Mike Walkley with Piper Jaffray. You may proceed.

Michael Walkley - Piper Jaffray

Great. Thank you very much. Ash, I just wanted to ask a question as it relates to LTE, with the Verizon win as a good reference, has this increased carrier interest in your own solutions, have you seen the change in your RSP activity? And also with the Verizon announcement with the move to LTE, are you seeing any of your carrier, customers or carrier contacts indicating an accelerated plans for other carriers to move to 4G?

Ashraf Dahod

Well, I mean obviously getting an endorsement from Verizon for 4G technology like LTE has significantly raised our visibility in the market. And obviously has made us a extremely credible supplier for LTE to other carriers.

And we actually not only expect that to have a positive impact on their LTE decision, but we also expect that to have a positive impact on some of the 3G decisions that carriers have not made yet. So, overall, obviously getting such an endorsement from Verizon is a huge plus.

As far as the plans of other carriers to move to LTE, immediately following the Verizon announcement and the several carriers had their own announcement accelerating their plans to deploy LTE as far as what comes out in reality remains unseen. So one thing is clear that the movement of higher speed, greater migration to EV-DO, HSPA and HSPA Plus, it's happening all around the world.

Michael Walkley - Piper Jaffray

Right.

Ashraf Dahod

That extensive driver carriers at some point will move towards the yield.

Michael Walkley - Piper Jaffray

Okay. And Ash with a challenging macro environment, are we seeing any carriers delaying decision on packet core or the pace of RFP is about the same?

Ashraf Dahod

I mean, obviously, as I mentioned in my script. We are very carefully watching the macroeconomic conditions. But fortunately, for the market and the industry, there has not been any significant slowdown in the use of data and the data revenues for the carriers. And, therefore, so far we haven't seen any impact on our business. As far as the RSC activity is concerned, we see an increased level of activity we've started towards the end of the last year, and it has continued through the first quarter.

Michael Walkley - Piper Jaffray

 

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