Cisco rival Juniper could reap some 4G rewards

Nokia Siemens, Lightsquared deal expected to pull router company in

Juniper is expected to benefit from a multibillion dollar deal between Nokia Siemens Networks and Lightsquared, a 4G LTE operator turning up service in the US next year. According to a bulletin from investment firm UBS, NSN would most likely use partner Juniper's edge routers to backhaul traffic in this network, which could mean $50 million to $150 million in revenue annually for Juniper. 

NSN and Juniper have a longstanding router resale arrangement and a Carrier Ethernet joint venture that began in 2009, UBS notes. Earlier this month, NSN announced an 8 year, $7 billion contract with Lightsquared for a network buildout expected to begin in late 2010 or early 2011. 

UBS is basing its revenue estimate for Juniper on the capital expenditures of Clearwire, another 4G operator basing its network on mobile WiMAX, of which Cisco is a major supplier. Lightsquared's capital spending plans were unknown to UBS. 

But Clearwire spends about $1.5 billion to $2 billion annually. If Lightsquared spends the same and Juniper gets 100% share of the edge router opportunity, it could mean that about 5% of that budget could go to Juniper beginning in 2011, according to UBS. This would equate to about 2% to 4% of incremental sales to Juniper.

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