Last week Sonus Networks (NASDAQ:SONS) made a significant move in its ability to capture share with the opportunities created as communications shifts to IP by announcing its intent to acquire Performance Technologies (PTIX). Given the fact that the industry is still in the very early stages of both the session border controller (SBC) market and diameter signaling, I think the $30 million that Sonus paid for PT is a bargain.
To fully understand the opportunity at hand for Sonus, one needs to understand how legacy networks transition to IP. Legacy communications use a set of signaling protocols called Signaling System Number 7 (SS7) to enable calls to occur over the legacy public switched telephone network (PSTN). SS7 is...
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